800.51W89 U.S.S.R./114a: Telegram
The Acting Secretary of State to the Ambassador in the Soviet Union (Bullitt)
233. Efforts to reach an agreement with Troyanovsky have failed. There is no difficulty in fixing the amount of the debt to be paid by his Government. But he demands from us an open credit of $100,000,000, payable in 20 years, which is equivalent to a straight loan, and also a guarantee of a similar amount to be used in Export-Import Bank credit transactions, which would of course properly become a revolving fund. He also asks for a longer time on the credit transactions, not being satisfied with a limit of 5 years. We can only for the present let the matter ride.
I have suggested to the Executive Committee of the Bank the expediency of rescinding or modifying the Resolution which prevents credit transactions pending debt negotiations, with added interest, to become a special fund in the Treasury for the benefit of our claimants, and the Committee is now in session considering that question.
I have just had a telephone talk with the President, who approves our course. He asked me whether I had advised you of what had occurred, and I am now doing this, notwithstanding you have probably already been informed through the press.