FOREIGN RELATIONS, 19 4 6, VOLUME VI



611.7431/2-2646: Telegram
The Representative in Bulgaria (Barnes) to the Secretary of State

SECRET                            SOPA, February 26,1946-3 p. m.
US UROENT                                     [Received 5: 10 p. m.]
  179. Mission informed that by invitation of Secretary of Com-
merce," Gen. Stoichev has had discussion with Director Bureau For-
eign [and] Domestic Commerce 65 re resumption U.S. Bulgarian trade
relations. A desire to resume trade was expressed and attitude of Bul-
garian Government requested. Stoichev is today instructed by cable
to inform Dept that Bulgaria has great and varied need for goods
only procurable in US but that until Bulgarian agriculture can be
reorganized, great difficulty lies in payment. Stoichev instructed to
offer 3,500 tons of tobacco and 500 kilos of rose oil (remytel 170, Feb-
ruary 25 66) and to request line of credit $10,000,000 to be repaid
within 5 years. Immediate shipment of above tobacco and rose oil
amounting to roughly $5,000,000 would reduce indebtedness by half.
Mission will attempt to check origin of tobacco which may be Greek
tobaccos for which US license refused to Coleman.
  Foregoing if true so far as US initiative is concerned, seems to be
somewhat at variance with our policy toward present Bulgarian Gov-
ernment which stubbornly refuses to make any effort in political field
to facilitate US recognition. Reported US initiative in conversations
with Stoichev may explain to some extent persistence of Bulgarian
Minister of Foreign Affairs in believing US recognition imminent.
Only 2 days ago, he assured Regents again that recognition would be
forthcoming shortly. I strongly recommend coordination all US ac-
tivity toward Bulgaria and that any serious conversations about credit
be related to our political views about present Government despite
general US policy of not tying political strings to credits.67
  Repeated Moscow as 87.
                                                            BARNES

 64Henry A. Wallace.
 6 Amos E. Taylor.
   Not printed.
 In telegram 77, March 8, to Sofia, the Department replied: "While this
 Govt approves trade with Bulgaria on cash or barter basis, we do not encourage
 private credit transactions and no Exim Bank credit will be granted in present
 circumstances." (611.7431/2-2646)



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