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University of Kentucky UKnowledge International Relations Political Science 6-26-1996 Loans and Legitimacy: The Evolution of Soviet-American Relations, 1919-1933 Katherine A. S. Siegel St. Joseph's University, Philadelphia Click here to let us know how access to this document benefits ou.y Thanks to the University of Kentucky Libraries and the University Press of Kentucky, this book is freely available to current faculty, students, and staff at the University of Kentucky. Find other University of Kentucky Books at uknowledge.uky.edu/upk. For more information, please contact UKnowledge at [email protected]. Recommended Citation Siegel, Katherine A. S., "Loans and Legitimacy: The Evolution of Soviet-American Relations, 1919-1933" (1996). International Relations. 20. https://uknowledge.uky.edu/upk_political_science_international_relations/20 LOANS AND LEGITIMACY 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 This page intentionally left blank 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 LOANS AND. LEGITIMACY THE EVOLUTION OF SOVIET-AMERICAN RELATIONS 1919-1933 KATHERINE A.S. SIEGEL THE UNIVERSITY PRESS OF KENTUCKY Copyright © 1996 by The University Press of Kentucky Scholarly publisher for the Commonwealth, serving Bellarmine College, Berea College, Centre College of Kentucky, Eastern Kentucky University, The Filson Club, Georgetown College, Kentucky Historical Society, Kentucky State University, Morehead State University, Murray State University, Northern Kentucky University, Transylvania University, University of Kentucky, University of Louisville, and Western Kentucky University Editorial and Sales Offices: The University Press of Kentucky 663 South Limestone Street, Lexington, Kentucky 40508-4008 Library of Congress Cataloging-in-Publication Data Siegel, Katherine A. S. (Katherine Amelia Siobhan), 1961- Loans and legitimacy: the evolution of Soviet-American relations. 1919-1933/ Katherine A.S. Siegel. p. cm. Includes bibliographical references and index. ISBN 978-0-8131-6035-1 1. United States-Foreign relations-Soviet Union. 2. Soviet Union-Foreign relations-United States. I. Title. E.183.8.S65S56 1996 327,73047'09'041-dc20 95-26338 FOR MITCH j j j j j j j j j j j j j j j j j j This page intentionally left blank j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j CONTENTS ACKNOWLEDGMENTS ix INTRODUCTION 1 1. MARTENS AND THE FIRST SOVIET MISSION 6 2. THE DEMISE OF THE SOVIET BUREAU 23 3. DIPLOMATIC, MILITARY, AND HUMANITARIAN INITIATIVES, 1919-1923 39 4. ECONOMIC FOREIGN POLICY UNDER HARDING 62 5. THE SOVIET COMMERCIAL MISSIONS UNDER HARDING, COOLIDGE, AND HOOVER 76 6. TRADE AND FOREIGN POLICY, 1923-1929 89 7. AMERICAN BUSINESSMEN, THE NEP, AND THE FIRST FIVE-YEAR PLAN 110 8. SOVIET-AMERICAN RELATIONS, 1929-1933 133 9. CONCLUSION 139 ABBREVIATIONS 141 NOTES 143 BIBLIOGRAPHY 187 INDEX 197 ILLUSTRATIONS FOLLOW PAGE 86 This page intentionally left blank ACKNOWLEDGMENTS Many people helped to make this book possible. My doctoral adviser, Alexander DeConde, gently diverted me from the well-traveled path of the Cold War and en­ couraged me to venture into the 1920s instead, for which I am very grateful. He also read all of the drafts of the dissertation from which this book emerged, and provided me with invaluable advice, assistance, and support. Professors W. Elliot Brownlee and Joachim Remak were also wonderfully helpful members of my dis­ sertation committee. I would very much like to thank those who commented on the book in in its various forms thereafter: David McFadden, Christine White, Tibor Frank, Jonathan Coopersmith, Linda Killen, and Michael Sherry. Michael J. Hogan, editor of Diplomatic History, kindly gave permission for me to use por­ tions of an article I had published in that journal. Colleagues Nina Bakisian, Fiona Harris Stoertz, Sina Dubovoj, Thorn Armstrong, Eduard Mark, and Rorin Platt also offered their encouragement and support, as did the participants of the 1989-1991 Institute on Global Conflict and Cooperation Fellows Conference. As this work evolved from dissertation to manuscript, I enjoyed the frequent inspiration, good humor, and a.ctive mentoring of.my history department col­ leagues at St. Joseph's University. And as the manuscript turned into a monograph, I benefited from the gracious suggestions, careful oversight, and efficient opera­ tions of the editorial, production, and marketing staff at the University Press of Kentucky. Researching the many collections used in this book would have been far more daunting a task without the generous assistance offered by librarians and archivists in the United States and Russia, including Dane Hartgrove and John Taylor at the National Archives; Dwight Miller and Shirley Sondergard at the Hoover Presidential Library; Verne Newton, Raymond Teichman, and Robert Parks at the Roosevelt Library; Joanne Hohler at the Wisconsin State Historical Society; Chris Baer, Michael Nash, and Marjorie McNinch at the Hagley Library; Elaine Barr at the Swarthmore College Peace Collection; Jennifer Rollo at the Eisenhower Library ofJohns Hopkins University; Barbara Natanson at the Library of Congress, Prints and Photographs Division; Bill Gorman at the New York State Archives; and Chris Dixon and Pat Weaver at Drexel Library, St. Joseph's Uni­ versity. Also of great assistance were the staffs at the Federal Bureau of Investigation Reading Room; the National Archives; the Library of Congress; the x ACKNOWLEDGMENTS Seeley Mudd Manuscript Library at Princeton University; the Hoover Institution on War, Revolution, and Peace; the Russian State Archival Administration; the Russian Foreign Ministry Archive; the Lenin Library; and the Central Party Archive. This book would not have been possible without the financial support of the Kennan Institute ofAdvanced Russian Studies; the Hoover Library Associa­ tion; the Franklin and Eleanor Roosevelt Institute; the Hagley Museum and Library; the Institute on Global Conflict and Cooperation; the Society for Histori­ ans ofAmerican Foreign Relations; the History Department, Faculty Development program, and the Institute on Trade, Diplomacy and Development at St. Joseph's University; and the history department, the Interdisciplinary Humanities Center, and the graduate division at the University of California, Santa Barbara. I would also like to take this opportunity to thank my family, including my late father, Capt. C. William Sibley, who regularly encouraged me to "suck in the valuable instruction" but died too early to see what I would do with it; my mother, Margaret M. Sibley, who banished the television to the intemperate clime of the attic and pushed books on us instead; and my siblings, who were always willing to dialogue about early Soviet-American relations. Above all, my deepest and fondest appreciation is to my husband, Mitch Siegel, who sustained me with loving encouragement, editorial advice, technical assistance, and humor throughout the seven years we shared our lives with this book. INTRODUCTION In 1919 anticommunist sentiment in America was at a crest. That year saw the founding of the American Communist party and also the deportation of boatloads of suspected Bolsheviks from the United States. Attorney General A. Mitchell Palmer and his ambitious assistant, J. Edgar Hoover, laid their plans then for the large-scale raids against alleged Soviet sympathizers that were launched early in 1920. Palmer did not escape unscathed. On June 2, 1919, his house at 2132 R Street in Washington was blown up by an anarchist. Across the street, windows also shattered at the home ofAssistant Secretary of the Navy Franklin D. Roose­ velt. 1 At the same time, over ten thousand American troops were occupying parts of Russia, against Soviet volition; as part of an inter-Allied military intervention. Yet this tumultuous environment did not prevent the Soviet People's Com­ missariat of Foreign Affairs (Narkomindel) from dispatching an unofficial "am­ bassador" tq the United States in the spring of 1919. Despite an existing ban on Soviet trade during the Red Scare, Ludwig C.A.K. Martens, an engineer by train­ ing, was instructed to open a New York bureau in order to acquire American goods. In the aftermath of the Bolshevik revolution, Russian leaders were con­ vinced that their country's future depended upon economic and political links with the United States. Lenin realized that there were marked differences between the outlooks of reluctant government officials and those of profit-seeking busi­ nessmen, and he sought to take advantage of them. He believed that by persuad­ ing American businessmen, the .representatives of doomed imperialism, to contribute to the development of Soviet Russia, he would "promote the buildup of an international- imperialist contradiction."2 Nearly half a century later, Soviet historian V.A. Shishkin offered a very similar analysis: "A striking example of im­ perialist contradiction between the U.S.A. and the other great powers on the ques­ tion of economic relations with Russia was the paradoxical fact of secret, separate contacts ofAmerican agents with Soviet representatives."3 This book investigates the early Soviet campaign for American trade and recognition, as well as the American response, official and unofficial. It suggests that the prerecognition era, like the post-Cold War era, embraced a Russian­ American relationship that was evolving rather than rigidly polarized.
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