The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1927-10-05
the United States Pay
The Huge Debt It Owes
To the Soviet Government
By J. LOUIS ENGDAHL.


THE government at Washington whether of Wilson,
/ Harding or Coolidge has repeatedly maintained for
ten years with straight and seemingly sober face
that would be recognition OF the Soviet Union
until all Russian debts were recognized and paid.
Former secretary of state Robert Lansing IN letter
Jan H. 1919 the then secretary OF the treasury
William G. McAdoo, put it this way:
81 can assure you that before any other government
in Russia is recognized, / shall confer with you fully
the best method of providing for the recognition
by such government of the Indebtedness incurred by
the provisional Russian government to the United
States"
1t was former secretary of the treasury McAdoo,
the sonnlaw of the late President Wilson, and the
political darling of the railroad brotherhoods who mi
tiated the policy January 1918, little more than w"
months after the revolution not recognize any Eu
sian government until it agrees to debt recognition
The big point about these debts FOX american
workers and farmers know, that tn Jney that
the United States seeks to collect neytr loaned to
the Soviet government advanced it in any form.
In fact, it used to finance various oil wars and
intervention that had for their object the
overthrow of the Soviet government
The facts, with much additional information that il
Eliminates the attitude of mperalst America toward
working class Russia, came to light in the lnyestlga-
ton conducted by the u S. senate judiciary commit
tee acting under resolution by Senator Reed, OF
Missouri. The findings of the committee based
entirely official data taken from the files of the
state and treasury departments.
These documents reveal amazing series of trans
actions between the Washington and Boris
Bakmetev, who to be known "the ambassador
without government"
This Bakmetev, befriended by American Imperialism.
left Russia the representative of the Kerensky
gime. He had not been in Washington long, however,
when Kerensky rule defeated by the BolshevE
Revolution. But all this time made difference t
the late president Woodrow Wilson, and his state de-
partment In spite of the protests of the Soviet
eminent the United States continued to recognize Bak
metev "the Russian ambassador" at the same time
deporting Ludwig Martens the representative of the
Workers and Peasants Government.
The anxiety of the United States government to col
lect its fake debts" from the Soviet government
only rivalled by its energy in squanderng Bakmetey
money raised in "war taxes" paid by American workers
Great Brtains policy in hquidating Russian assets
uader control after the fall of Kerensky is set fort
in the senate document in official treasury memo
randum Russian finance and contracts dated March
l. 1913 The memorandum drawn up by the Their
assistant secretary of the treasury Norman H. Davis
It says:
'Mr. Ughet (Bakhmeteffs financial ATTACHED inform
that substantially all Russian purchases made her
prior the United States) entry into the will
funds advanced by the British government made
through j. P. Morgan and Company.
zone contract for $4,000 tons of barbed wire whici
is being delivered, placed through Morgan
behalf of the British government and the British
government already has disposed of approximately 49,
900 tons of this barbed wire to War Department.
AND is APPLYING THE PROCEEDS IN REDUC-
TION OF RUSSIAN OBLIGATIONS HELD BY GREAT
BRITAIN
"Mr. Ughet also informs that the British gcv
eminent with the consent of the Anglo Russian sub
committee is disposng of all materials purchased thru
Morgans with British funds and applying the proceeds
reduction of Russian obligations held by Great Bri
tain 1T WOULD SEEM, THEREFORE, THAT THE
BRITISH GOVERNMENT IS LOOKING AFTER ITS
INTERESTS VERY WELL IN THIS RESPECT"
British finances at that time were in very bas
condition The kings treasury needed every farthing
it could get it's hands The treasury at Washington
in better shape
The senate committee reports that the United States
like Great Britain could have stepped in when the
Kerensky regime fell and recovered large part of it,
advances to Bakmetev but President Wilson and Sec
rotary of State Lansing ordered that payment the
debt to this government totallng S11000000 out OF
the fund held by Bakmetev after the fall of the Ker
ensky regime "BE DEFERRED so Balmetev might
At the time however, payment of interest obt
cations held privately in this country approved
Another victory for Morgan
total of $751;, 729 $50 advanced" in cash t.
Bakmetev the diplomatic representative of the Ker.
ensky provisional government. When these advance.
were begun the Kerensky government had $11 100000
to it's credit in the National City Bank of New York
In addition $13,000000 realized from sales
of property belonging to the kerensky regime This
made an aggregate of $211,000,000 which Bak-
metev had CONTROL with the of the United States
government
The Soviet government, when it came into power i'm
mediately dsavowed Bakmetev. The Workers Govern
ment thereupon should have fallen heir to the SPILL
100000. The National City Bank received cabed in
structons from Russia to honor orders from these
former representatives Nevertheless with the consent
and protection Of the Wilson administration Bakmetev
was permitted to continue in charge of the huge fund
and use 1t in the wars the Soviet Union The com
mittee investigation further disclosed:
Some interesting facts about the manner in
which Russian affairs administered bv this GOV