761.5211/8–851
Memorandum by the Director of the Office of Eastern European Affairs (Reinhardt) to the Legal Adviser (Fisher)1
Subject: Amtorg Trading Corporation
There is attached a letter from Acting Attorney General Peyton Ford2 referring to reports recently submitted by the FBI and requesting the views of the Department as to requesting the USSR to transfer Amtorg’s activities to the Soviet Embassy in Washington. There is also attached a copy of an FBI report3 on Amtorg which it is presumed formed the basis of Mr. Ford’s letter.
In view of your interest in Amtorg’s activities, your comments on the Attorney General’s suggestion are desired.
Our tentative comments are:
- 1.
- In view of the decline in U.S.-Soviet trade and the change in trade procedures by-passing Amtorg, from the point of view of future trade relations, there would appear to be no objection to the proposal.
- 2.
- A small volume of trade would be handled by Embassy personnel having diplomatic immunity.
- 3.
- The old argument as to the advantages to the U.S. businessman to be able to sue in a United States court now arises but in a different form.
- Some suits against Amtorg are believed still to be pending in United States courts (Your staff may be able to advise concerning these.) and elimination of Amtorg by the United States Government would result in the flight of remaining Amtorg assets or at least the disappearance of the defendant. The Soviets might use our action to avoid meeting other Amtorg obligations.
- 4.
- The addition of another item for the Soviet propaganda parade that the United States is responsible for world tension rather than the U.S.S.R.
- 5.
- Viewed in the light of these considerations, the Attorney General’s proposal appears to have some merit.