740.00119 Control (Rumania)/8–1746: Telegram
The Representative in Rumania (Berry) to the Secretary of State
us urgent
[Received 5:40 p.m.]
799. Deptels 406, June 19; 472, July 19; despatch 6027 [1027] July 8.16 Soviet officials in past several months have shown no enthusiasm [Page 620] on their own initiative for continuing economic meetings. Reason may be that although last two meetings were conducted from American-British side with great decorum and in no spirit of mean criticism of Soviet or Rumanian Government action, Soviet officials undoubtedly received more information of specific practical character and more ideas than they gave. There was basically, if tacitly, a reluctance on Soviet part to accept clear conclusions such as fact that an artificial lack of exports to free currency markets constituted basis foreign trades stagnation. Perhaps greatest reason for Soviet loss of interest was growing conviction that good 1946 crop would automatically solve many problems and indeed permit continuance of Soviet exploitation Rumanian economy under armistice.
However, imminence of seriously deteriorating economic conditions precipitated by drastic corn drought of past several weeks in-increases possibility that Soviet may wish to resume meetings and perhaps in more objective spirit. I am convinced that our initiative meetings can be resumed at any time their effectiveness dependent perhaps as much in manner of approach to all problems by American and British particularly avoidance of criticism as upon Soviet intentions.
A major factor would be the wholehearted approval of at least certain individuals in Rumanian Government of American-British interest in rehabilitating Rumanian economy. It is no secret that certain Rumanian officials look for levers with which to pry concessions from Soviet in way of reparations, the fundamental to at least the beginning of recovery.
I am in full accord with broad economic objectives outlined in Deptel 406 seeing little to be added or omitted but make following suggestion. Drought necessitating help from abroad may be means of bring[ing] about Soviet acceptance of American-British objectivity. Minister Foreign Trade in talks at Moscow beginning September 2 expects to be able to convince Soviet of practicability of its relaxing armistice pressures and to release considerable quantities of oil and timber to pave the way for later consideration credits in railways and industrial plant on basis outlined by Department if American Govt sees its way clear to sell Rumania large part of corn needed to stave off famine in various areas of country.
- Telegram 472, July 19, to Bucharest and despatch 1027, July 8, from Bucharest, not printed.↩