861.131/6–1650: Telegram

The Ambassador in the Soviet Union (Kirk) to the Secretary of State

confidential

1651. On June 8 and again on June 10 opportunity arose in conversation with Acting Foreign Minister Gromyko (Vyshinski on vacation since early June) to make comments on ruble dollar exchange rate. On 10 June I remarked that as of 1 July Soviets were in effect doubling all my rents and on what could only be considered as very short notice. This I said was not in conformity with US practice as he well knew. In reply Gromyko said that of course ruble rents remained unchanged, but when I demurred saying our dollar expense to obtain rubles was as was well known about to be doubled, his reply was to effect that ruble now had definite gold basis but when I pointed out Soviet Union did not participate in International Monetary Fund and that there existed no free market for rubles, he shrugged off matter by saying that rents in US were very high anyway. I commented Soviets owned their Embassy in Washington as we had turned it over to their government in 1934, and when he smilingly acknowledged such was the case I rejoined it was their good fortune such was the case.

[Here follow the final two paragraphs concerning the conversation of June 10 on the subject of the ruble requirements for expenses of running the Embassy in the Soviet Union, calculated as amounting to approximately 10 million rubles.]

Kirk