BRITISH cJIBASSY,
WASHINGTON, D.C.,
March 13th, 1940,
No. 254.
My Lord,
In the course of the recent debates in
Congress on the subject of financial assistance to
Finland, the question o£ United States-soviet
relations naturally came under consideration. On
January 18th the Senate passed a resolution requesting
the Secretary of State to report, if not incompatible
with public interest, whether the Union of Soviet
Socialist republics had fulfilled the obligations in
the agreements entered into between the United States
and the Union of Soviet Socialist Republics on
November 15th, 1933.       Mr, Cordell Hull replied on
_ January 30th in a letter, of which copies are enclosed,
giving a brief account of the Soviet Government's
shortcomings and of the State Department's efforts to
correct them.
2. Shortly afterwards when the estimates for the
State Department were under examination by the Senate
Appropriations Committee, Senator Lodge from Massachusetts
made an attempt to strike out the sum of #17,500 for the
upkeep of the United States riabassy in Moscow, but was
defeated.       Two days later he raised the   matter on the
floor of the Senate and was supported by 3enator
Vandenberg although the latter admitted the doubtful
propriety of taking such a highly political decision on
an appropriations bill.     He recited the misdeeds of the
Soviet/
The night Honourable PRHM:ACKM:NT
The Viscount Halifax, K. O.,
etc.,      etc., etc.
-2-
Soviet Government, recalled that he had voted against
its recognition by the United States and made it clear
that he was not willing to give a vote towards maintain-
ing diplomatic relations with it.
3. In reply senator Berkley retorted that the
Senate had had an opportunity to take this view when
Mr* steinhardt's nomination as Ambassador at Moscow
was before it for confirmation last year but had not
done so.       To withhold his salary now was an indirect
attack which usurped the function of the ^executive and
should be made in the   direct way by the Introduction
of a suitable resolution*
4. The senate agreed with this view and the amend-
ment offered by Senator Lodge was rejected, only ten
Senators voting for it.
5. I am sending a copy of this despatch to His
Majesty's Ambassador aViioscow*
/    I have the honour to be,
with the highest respect,
My Lord,
Your Lordship's most obedient,
humble servant,
(301)) LOTHIAR