740.00119 Control (Rumania)/3–2145: Telegram
The American Representative in Rumania (Berry) to the Secretary of State
[Received 7:15 p.m.]
205. This Mission lately has received several inquiries concerning the resumption of trade between the United States and Rumania. As this subject must be coming increasingly before the Department the following is presented as background for the Department’s discussion with American exporters.
From a strictly Rumanian point of view a desire could not be stronger for American trade. The Rumanian change over from the Axis camp has created psychologically an immense demand for American goods. At the same time exhaustion of stocks during 4 years of war has created a large physical demand for the same products. But neutralizing these demands are the heavy burdens placed recently on Rumanian economy by the obligation to meet reparation payments under article XI of the Armistice Agreement. In addition since early last autumn very heavy demands have been made upon the economy under the authority of article X and still heavier demands are now being made under article XII.
In spite of the foregoing it might be possible to look for a reopening of American trade on a small scale if it were not for political considerations. These considerations seem to indicate that Russia plans to dominate Rumanian economic life.
Some Rumanian officials have been told that any goods remaining after the conditions of the armistice have been satisfied will be absorbed by the Soviet Union under a commercial exchange agreement. These officials recall that the Rumanian trade delegation which went to Turkey was ordered by the Soviet authorities to return when the success of the mission seemed likely.
Many Rumanian businessmen believe that it is the plan of the Soviet Government to bring about paralysis of the Rumanian economic life by increasing the demands under the armistice to a point where Rumania [Page 520] will be unable to fulfill the terms of the agreement. They point out that this would fit into the overall Soviet plan to level the economy of the frontier states to at least that of the Soviet Union. They recall that the Rumanian Communists desire to see eliminated all foreign trade except that with the Soviet Union (re my telegram No. 193 of March 16, 7 p.m.).
Rumanian political leaders, as I have frequently reported, are quite convinced that the Soviet Government is planning for the dissolution of the Rumanian State. These men openly say that even [if?] Rumania cannot [could?] fulfill the terms of the armistice, the armistice agreement will be denounced by Russia, and the armistice and Rumania will disappear together. This point of view is gaining adherents as heavier and heavier Russian demands become known. (Please see Egen [Gen.] Schuyler’s telegram of March 1, 8 p.m.—56733).
It is the considered opinion of this Mission that American manufacturers and exporters should not be encouraged to look forward to a resumption of trade unless the American Government is prepared to take a sufficiently firm stand with the Soviet Government as to bring about an understanding whereby Americans and Soviets will have equal opportunity in Rumania. As Ambassador Harriman has pointed out the taking of such a stand will bring us squarely up against the long range Soviet plans for eastern Europe. (Reference his telegram [to] the Department No. 765 [756] of March 14). These plans as they are unfolding in Rumania indicate that there are no present opportunities for trade and that eventually Americans can expect to be in no better position to take advantage of trade opportunities than they are in Soviet Union.
Repeated to Moscow as No. 54.
- Not printed.↩