8. The Finnish situation.—The Soviet Government is in close touch with the Finnish situation and has little fear of an invasion of Russia from that direction. The Finnish Army is without question a third Red; probably a half Red; possibly two-thirds Red. There is even reported to be a tendency on a part of certain of the White Guards to oppose intervention in Russia. One of the Finnish regiments in Esthonia has returned to Finland, and it is supposed that it will assist the proposed revolution of the Finns in East Karelia against the Soviet Government. The Soviet Government has sent a committee to Helsingfors to arrange economic relations with Finland, and it is said that this committee carries threats of reprisals on the part of the Soviet Government against the Finns in Petrograd unless the treaty is negotiated. It is said in Petrograd that some of the Finns have already left Petrograd in anticipation that the Finnish Government will not be permitted to make any arrangement with the Soviet Government because of the attitude of certain of the allied representatives in Helsingfors.
9. Improvement in food conditions.—The suspension of passenger traffic from March 18 to April 10 has resulted in the Government bringing to Petrograd 60 to 100 cars of food each day, and one sees large quantities of food being transported about the city. At Easter time it is hoped to be able to give 3 pounds of white bread to the population of Petrograd. There also seems to be a larger supply of food for private purchase in the city. Mr. Shiskin has recently been able to buy 3 geese, a sucking pig, 2 splendid legs of veal, and roasts of beef at from 40 to 50 rubles a pound, which, considering the value of the ruble, is much less than it sounds. Shiskin has also been able recently to get eggs, milk, honey, and butter, together with potatoes, carrots, and cabbage. My bill for food for 11 days with Mr. Shiskin was about 1,300 rubles.
10. Order in Petrograd.—About three weeks ago there were several strikes in factories in Petrograd and Lenin came to talk to the strikers. Apparently the matter was settled satisfactorily and the workers were given the same bread rations that the soldiers receive. At the Putilov works some 400 men struck and part of them were dismissed. Both Shatov and the director of factories said that there were no executions, though the population the next morning reported 80 workers shot and that afternoon the rumor had increased the number to 400. There is practically no robbery in the city. Shatov left the opera the other night early because he told me the previous night a man had lost 5,000 rubles and it was such an exceptional thing to have a robbery that he was going out personally to investigate the matter, having some idea as to who was responsible.
11. Currency plans.—Zorin tells me that the Soviet Government has or had printed a new issue of currency which it is proposed to exchange for the old currency within the next three months. The details of the plan have not been completed but he thinks that an exchange of ruble for ruble will be made up to 3,000; an additional 2,000 will be placed on deposit in the government bank. That beyond 5,000 only a small percentage will be allowed to any one, and that a limit of possibly 15,000 will be placed beyond which no rubles will be exchanged. Then the plan is, after a certain period to declare the old ruble valueless. Zorin feels that as a result of this plan the new ruble will have some value and that the present situation in the country in which the farmer has so much paper that he refuses to sell any longer for money, will be relieved. This exchange would be followed later on by the issue of still other currency the entire purpose being the more equal distribution of wealth and the gradual approach to elimination of currency.
12. Concessions.—It is asserted that the northern railway concession has been signed and Amundsen tells me that all negotiations were accomplished without the payment of a single cent of tea money, probably the first instance of the absence of graft in such negotiations in the history of Russia. He says that Trepov, through his agent Borisov, at Moscow, was the greatest opponent of the Norwegian interests. Trepov was formerly minister of ways and communications and is reported to have been refused a similar concession under the Czar's government. Amundsen claims that Trepov has made every effort to secure this concession from the Soviet Government. I am attaching a statement regarding a concession which is supposed to have been granted to the lumber interests. There are rumors that other concessions have been granted.
13. Y.M.C.A.—Recently the Y.M.C.A. secretary arrived in Petrograd, claiming to have come without authorization from his superiors. He has been staying at the embassy but recently went to Moscow at the invitation of Tchitcherin. Schklovsky tells me that the American has plans for the establishment of the Y.M.C.A. in Russia which he wanted to put before the Moscow government. Schklovsky doubted that it would be feasible to organize in Russia at present a branch of the International association unless some rather fundamental modifications were made in their policy.
14. Treadwell.—I have twice asked Schklovsky to secure information regarding Treadwell, and he assures me that he has taken the matter up with Moscow, but that apparently they have had no news from Tashkent as yet. He promised to let me know as soon as anything was heard.
15. Attitude toward United States.—The degree of confidence which the Russians and the soviet officials show toward our Government is to me a matter of surprise, considering our activities during the past 18 months. There seems to be no question in the minds of the officials in Petrograd whom I have met that we are going to give them an opportunity to develop a more stable form of government, and they apparently look upon President Wilson as one who is going to decide the question on its merits without being influenced by the enormous pressure of the Russian emigrés and the French Government. Doubtless part of this attitude is due to the favorable impression created by Mr. Bullitt, but much of it must be the result of information which they have secured from the press. At the present moment the United States has the opportunity of demonstrating to the Russian people its friendship and cementing the bonds which already exist. Russia believes in us, and a little assistance to Russia in its present crisis will result in putting the United States in a position in Russia which can never be overthrown by Germany or any other power.
16. Social work.—I have recently sent a cable from Helsingfors regarding health and sanitary conditions in Petrograd, a copy of which I am attaching. I have spent the past two weeks visiting schools and the children's home in Petrograd. There are 30,000 children for whom homes have been provided in the past nine months, and preparations are being made to house 10,000 more. Homes of emigrés are being taken over and groups of 40 children placed in them under the care of able instructors; where the children are old enough they go to school during the daytime. A beautiful home life has been developed. The children are well fed and well clothed, and there is a minimum of sickness among them. At the present time, when so much disease exists in Petrograd, and when there is so much starvation, the healthy appearance of these thousands of children, together with the well-fed condition of children who are not in institutions, but are receiving free meals in schools, is a demonstration of the social spirit behind much of the activities of the present government. I shall send later a more detailed statement of some of the interesting things I have learned about this phase of the activities of the new regime.
17. Conclusion.—In this rather hastily dictated memorandum which Mr. Francis is going to take tonight to Paris I have tried to point out some of the things that have interested me in Petrograd. Naturally I have emphasized the brighter side, for the vast amount of absolutely false news manufactured in Helsingfors and Stockholm and sent out through the world seems to me to necessitate the emphasizing of some of the more hopeful features of the present government. Naturally the character of the Russian people has not changed to any great extent in 18 months, and there is doubtless corruption, and there is certainly inefficiency and ignorance and a hopeless failure to grasp the new principles motivating the government on the part of many of the people. A people subjected to the treatment which Russians have had during the last 200 years can not in one generation be expected to change very greatly, but personally I feel the present government has made a vast improvement on the government of the Czar as I knew it in 1916-17. Without doubt the majority of the people in Petrograd are opposed to allied intervention or revolution and wish the present government to be given a fair chance to work out the salvation of Russia. One of the most hopeful symptoms of the present government is its willingness to acknowledge mistakes when they are demonstrated and to adopt new ideas which are worth while. Personally I am heart and soul for some action on the part of the United States Government which will show our sincere intention to permit the Russian people to solve their own problems with what assistance they may require from us. STOCKHOLM, April 4 1919.