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OF 7 = THE SECRETARY OF COMMERCE WASHINGTON 25 STATES OF Mar 14 46 The President The White House Washington, D. C. Dear Mr. President: As you may recall, in the course of our talk on Tuesday I suggested that we would have a better chance to improve our relations with the Soviets if, in addition to our new diplomatic effort, we also made a new approach along economic and trade lines. I am hopeful, as I know you are, that General Bedell Smith will succeed in break- ing the present diplomatic deadlock in .S.-Soviet relations and that he will find a way of persuading the Soviet Govern- ment of the advantages of cooperating with the USA and with the UNO in settling outstanding international issues. I am deeply convinced that General Bedell Smith's task would be made easier and his success more lasting if we could also at the same time discuss with the Russians in a friendly way their long range economic problems and the future of our cooperation in matters of trade. We know that much of the recent Soviet behavior which has caused us concern has been the result of their dire economic needs and of their disturbed sense of security. The events of the past few months have thrown the Soviets back to their pre-1939 fears of "capitalist encirclement" and to their erroneous belief that the Western world, including the USA, is invar- iably and unanimously hostile. I think we can disabuse the Soviet mind and streng- then the faith of the Soviets in our sincere devotion to the cause of peace by proving to them that we want to trade with them and to cement our economic relations with them. To do this, it is necessary to talk with them in an understanding way, with full realization of their difficulties and yet with FORVICTORY more BUY ATIONAL UNITED ARCHIVES AND STATES LOORDS WAR SERVICE" BONDS AND STAMPS

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    "ocrText": "OF\n7\n=\nTHE SECRETARY OF COMMERCE\nWASHINGTON 25\nSTATES\nOF\nMar 14 46\nThe President\nThe White House\nWashington, D. C.\nDear Mr. President:\nAs you may recall, in the course of our talk on\nTuesday I suggested that we would have a better chance to\nimprove our relations with the Soviets if, in addition to\nour new diplomatic effort, we also made a new approach\nalong economic and trade lines. I am hopeful, as I know\nyou are, that General Bedell Smith will succeed in break-\ning the present diplomatic deadlock in .S.-Soviet relations\nand that he will find a way of persuading the Soviet Govern-\nment of the advantages of cooperating with the USA and with\nthe UNO in settling outstanding international issues.\nI am deeply convinced that General Bedell Smith's\ntask would be made easier and his success more lasting if\nwe could also at the same time discuss with the Russians\nin a friendly way their long range economic problems and\nthe future of our cooperation in matters of trade. We know\nthat much of the recent Soviet behavior which has caused us\nconcern has been the result of their dire economic needs and\nof their disturbed sense of security. The events of the past\nfew months have thrown the Soviets back to their pre-1939\nfears of \"capitalist encirclement\" and to their erroneous\nbelief that the Western world, including the USA, is invar-\niably and unanimously hostile.\nI think we can disabuse the Soviet mind and streng-\nthen the faith of the Soviets in our sincere devotion to the\ncause of peace by proving to them that we want to trade with\nthem and to cement our economic relations with them. To do\nthis, it is necessary to talk with them in an understanding\nway, with full realization of their difficulties and yet with\nFORVICTORY\nmore\nBUY\nATIONAL\nUNITED\nARCHIVES AND\nSTATES\nLOORDS\nWAR\nSERVICE\"\nBONDS\nAND\nSTAMPS"
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