861.51/648: Telegram
The Secretary of State to the Consul General at Irkutsk (Harris), temporarily at Omsk
For Morris.
Consul’s 346 [347], August 6, noon.4a Department would like your views as to delivery of bank notes to representatives of Kolchak. Department’s December 27, 7 p.m.5 to Vladivostok, repeated to Harris, explains.
At the time the bank notes were refused delivery Treasury Department took position that these bank notes were ordered by the recognized Kerensky Government for issue by the State Bank of that Government and were purchased from American loans to that Government; consequently, if the United States having assisted in the licensing of export and transportation by army transport of these notes, were to be a party to their delivery to unrecognized authorities for circulation by a bank which was not the State Bank of Russia that, then, the United States would necessarily be implicated in an improper use of the notes in question unless they could first be surcharged to show their changed character.
The matter was also referred to the French, British and Japanese Governments for comment. The British Government took the position that the notes should certainly not be delivered without being first surcharged. The French Government believed that the political situation was so urgent that the notes should be delivered forthwith. No reply received from Japan, to inquiries through their Embassy here.
In discussing this matter later at Paris American representatives with the Mission took a contrary view, namely, that until the notes should be countersigned they were merely pieces of paper of no value or standing and that, consequently, if this Government prevented their delivery it would be gratuitously assuming an obligation in a transaction in which, otherwise, it would have no responsibility at all.
This matter has been discussed further since the return of Mr. McCormick and Mr. Norman Davis from Paris. The present view seems to be that while in retrospect it might possibly have been better to have taken no cognizance at all of the shipment or delivery of these [Page 457] notes, it would, nevertheless, seem that, having actually taken a definite stand the Government cannot readily divest itself of some responsibility if the notes are released to unrecognized authorities. A suggestion has been made by the Russian Embassy here that possibly the Embassy could reimburse the Treasury Department for the American credits used to have these notes printed, the idea being that such action would render the notes Russian property in which the United States had no interest or responsibility.
Department hopes this will make the situation clear and would be glad to have any suggestions which occur to you from your observations in Siberia, and having in mind the favorable attitude toward the Government of Admiral Kolchak which has been announced by the President.
- Not printed.↩
- Foreign Relations, 1918, Russia, vol. iii, pp. 96–97.↩