THE SOVIET UNION                       717

actions in Iran can be portrayed, when time comes, as general measure
of security on part of a Russia hemmed in by threatening aggressors,
and any subsequent censure of Soviet Union in UNO can be held up
to Soviet public as another step in that process of encirclement of
USSR which, as Soviet public is being taught to believe, is heralded
by Churchill's speech.
  (5) In summary, therefore, we are inclined to view Soviet reaction
to Churchill's speech as closely related to situation in Iran and to feel
that Stalin has seized Churchill's speech and exploited it, in a distorted
interpretation, as an aid in preparing Soviet public psychologically
for coming events.
                                                           KENNAN

861.00/3-1646: Telegram
The Charge in the Soviet Union (Kennan) to ihe Secretary of State

                                           Moscow, March 16, 1946.
                                   [Received March 17-8: 50 p. m.]
  837. Yesterday's decree of Supreme Soviet 55 transforming Coun-
cils of People's Commissars of USSR, union republics and autonomous
republics into Councils of Ministers, corresponding People's Commis-
sariats into Ministries and corresponding Commissars into Ministers
was presented by Shvernik 56 on following grounds:
  Old nomenclature arose in first period of Soviet state which was as-
sociated with radical destruction of old state machine and with estab-
lishment of new Soviet forms of state life. This was period of setting
up of Soviet state when forms of administration were yet unstable
and had only begun to develop. However, organs of state adminis-
tration have not remained unchanged. Forms and functions of state
organs have altered in course of development of Soviet state. Old
nomenclature no longer reflects with sufficient distinctness the range
of competence and responsibility which constitution of USSR gives
to central organs and to persons who head various branches of state
administration. Names of Commissariat and Comniissar are applied
not only to central organs of state administration of USSR, union and
autonomous republics and their heads but also to certain local organs

  5 The Embassy in Moscow was advised officially of the changes made by this
decree in a circular note of March 20; and the Secretary of State was informed
of these changes by the Embassy of the Soviet Union in Washington in a
similar note on March 23.
  ' Nikolay Mikhailovich Shvernik, a candidate member of the Politburo of
the
Central Committee of the Communist Party, and First Assistant Chairman of
the Presidium of the Supreme Council of the Soviet Union, becoming Chairman
upon the retirement of Kalinin on March 19; see telegram 876, March 20, noon,
from Moscow, p. 719.