861.00/5572: Telegram
The Chargé in Sweden (Wheeler) to the Secretary of State
[Received November 5, 3 a.m.]
4211. According to latest confidential information reaching this Legation from sources heretofore found trustworthy, the present situation in the Baltic region is as follows: As neither Great Britain nor France is in a position to interfere, the Baltic barons and the Krupp-Essen[-Thiessen?] group of German industrials and private bankers which has been financing the operations of Von der Goltz71 and Bermondt72 consider time now opportune for their forces to crush the Soviet Government and in so doing to assume a paramount position in Russia and open the Russian market which is indispensable for Germany’s development. It is considered that the forces under Von der Goltz’s control are sufficient to accomplish this without difficulty. It is considered desirable in order to spare Russian sensibilities that the movement against Petrograd, the first step to be taken, be made under the Russian flag and Bermondt, of whose 8,000 to 10,000 men 3,000 are Russian, has accordingly been put in nominal charge of the movement although the real director is Von der Goltz who still remains with his force at Janishki on the Lettish [Page 737] Lithuanian frontier. Bermondt, following instructions, demanded of Latvia the right of passage which was refused and his attack on Latvia followed. The latter asked the aid of Esthonia which at first responded but her demands for compensation made presumably under pressure of Bermondt were considered too heavy and were refused whereupon Esthonia withdrew. It is not to Von der Goltz’s purpose to crush Latvia and the attempt is now being made to draw Yudenitch into negotiations with Bermondt with a view to Bermondt’s assuming chief command over the Northwestern Army. Yudenitch is likely to refuse this as while well aware that he cannot alone take and hold Petrograd he still reckons on Finland’s cooperation. Should these prospective negotiations between Bermondt and Yudenitch fail an alternate plan, behind which is believed to be Goutchkoff, former Russian Minister of War at present in Berlin, is to put forward General Gurko now in Berlin as commander in chief on the authority of both Bermondt and Yudenitch. Only in case this latter plan is agreed upon the troops of Von der Goltz will at once join the movement. If on the other hand these negotiations entirely fail it is believed that Bermondt intends to advance in any case even if this should imply attacking Yudenitch’s force. It is not Germany’s wish that Finland participate in this campaign which would lessen German credit for the overthrow of the Bolshevik government. American Mission’s 501. Copy to London.