861.00/5248: Telegram
The Representative at Vladivostok of the War Trade Board (Heid) to the Acting Secretary of State, transmitted by the Consul at Vladivostok (Caldwell)
[Received 3:50 p.m.]
511. Following from Heid.
“On September 1st all office furniture, fixtures, files, records etc., were transferred to the consulate. Work here is finished. Political, financial, military and railway transportation situation too unsettled to undertake now with assurance of success the economic relief mentioned your urgent cable June 27th, 4 p.m.58 Indications are that conditions will not improve within very near future. The Kolchak government is waning and will no doubt fall, but will continue in power long enough to obstruct any plans calculated to afford economic aid during the fall and winter of 1919 and 1920. It would be worse than useless to ship in even moderate quantities of commodities now unless definite provision be made to guard the goods from the time of arrival to final distribution to peasants and needy population. Conditions are worse now than at any time since Kolchak has been in power. The Omsk Government has conceded military control of the territory from Irkutsk to Vladivostok to the Cossack leaders who, aided and supported morally and materially by another foreign power, insult, beat and even kill peasants and civilians, obstruct and delay transportation, requisition and pilfer goods in transit, in fact generally pursue a policy calculated to prohibit relief reaching the masses, especially if such relief be attempted by Americans. Long delays occur in passing commodities through the Vladivostok customs and large quantities of merchandise disappear. Unpunished graft on the part of officials and profiteering [Page 427] by speculators continue unabated. The financial situation grows more hopeless; Siberian rubles are quoted at from 85 to 100 for one dollar. Rubles are a medium of trade only for petty and retail sales. In some localities Siberian rubles are not accepted. Large transactions property sales and often house rent and wages are payable in yen or dollars. Exports are small and threaten to cease entirely during autumn and winter. There is no prospect of early rehabilitation, on the contrary the large issues of new Siberian currency to meet the expenses of military railroads and general government budget accelerate and increase devaluation. Credits are impossible, the Cooperatives can not safely accept rubles in payment for commodities. The entire machinery of commerce is wrecked. In view of the above will the Department please authorize me to proceed to Washington for conference with War Department necessary to effect close and harmonious cooperation when distribution of commodities sold to Cooperatives becomes feasible. Can arrange transportation on Army transport sailing from Vladivostok first half of October if you grant authorization. Please arrange that compensation for July, August and September be made to me at Vladivostok and cable early answer. Heid.[”]