661.6231/252: Telegram

The Chargé in Germany (Kirk) to the Secretary of State

2384. My 2102, November 21, 4 p.m. Authoritative sources have admitted that the million tons of Russian feed grain which were hailed as a great first concrete result of the new German-Soviet economic entente, delivery of which was to have been completed by the [Page 498] end of the year, have only now started to move into Germany. The greater part of this grain, it was said, will come via the Baltic.

According to these sources the German, Soviet and Rumanian Governments have just completed a series of conferences with regard to rail connections between the three countries. It was stated that the Russians have now finished changing the gauge of the main lines leading up to their new frontier in former Poland, but it was admitted that the Polish lines leading to Germany are still far from being thoroughly restored. The Russians are leaving one normal gauge line through Galicia to permit German imports from Rumania.

The Russian trade delegation which has been here several weeks has completed its inspection of German export production and has returned to Russia. Preliminary negotiations with regard to Russian exports to Germany appear to have been completed some weeks ago in Moscow and it is said that the final determination of the terms of exchange and delivery of Russian and German products will be arranged in a new set of negotiations which will shortly start in Moscow.

The impression prevails that a few weeks ago German authorities were sincerely convinced that Russia would furnish with reasonable promptness a fairly substantial volume of needed raw materials but that at the present moment these authorities are less sanguine as regards delivery dates and quantities of the commodities negotiated for.

Kirk