The U.S. and Soviet Union are holding technical talks about possible repayment by Moscow of $188 million in pre-Communist Russian debts owed to the U.S. government, the State Department said. If the debts are repaid, it could clear the way for Soviet bonds to be sold in the U.S.. However, after two meetings with the Soviets, a State Department spokesman said that it's `` too early to say '' whether that will happen. Coincident with the talks, the State Department said it has permitted a Soviet bank to open a New York branch. The branch of the Bank for Foreign Economic Affairs was approved last spring and opened in July. But a Soviet bank here would be crippled unless Moscow found a way to settle the $188 million debt, which was lent to the country's short-lived democratic Kerensky government before the Communists seized power in 1917. Under a 1934 law, the Johnson Debt Default Act, as amended, it's illegal for Americans to extend credit to countries in default to the U.S. government, unless they are members of the World Bank and International Monetary Fund. The U.S.S.R. belongs to neither organization. Moscow has settled pre-1917 debts with other countries in recent years at less than face value. The State Department stressed the pre-1933 debts as the key to satisfying the Johnson Act. But the Soviets might still face legal obstacles to raising money in the U.S. until they settle hundreds of millions of dollars in additional debt still outstanding from the World War II lend-lease program. TEXT The U.S. and Soviet Union are holding technical talks about possible repayment by Moscow of $ 188 million in pre-Communist Russian debts owed to the U.S. government , the State Department said . If the debts are repaid , it could clear the way for Soviet bonds to be sold in the U.S. . However , after two meetings with the Soviets , a State Department spokesman said that it 's `` too early to say '' whether that will happen . Coincident with the talks , the State Department said it has permitted a Soviet bank to open a New York branch . The branch of the Bank for Foreign Economic Affairs was approved last spring and opened in July . But a Soviet bank here would be crippled unless Moscow found a way to settle the $ 188 million debt , which was lent to the country 's short-lived democratic Kerensky government before the Communists seized power in 1917 . Under a 1934 law , the Johnson Debt Default Act , as amended , it 's illegal for Americans to extend credit to countries in default to the U.S. government , unless they are members of the World Bank and International Monetary Fund . The U.S.S.R. belongs to neither organization . Moscow has settled pre-1917 debts with other countries in recent years at less than face value . The State Department stressed the pre-1933 debts as the key to satisfying the Johnson Act . But the Soviets might still face legal obstacles to raising money in the U.S. until they settle hundreds of millions of dollars in additional debt still outstanding from the World War II lend-lease program . 2~4~6~8~10 4 8~10 16~18 22~24~26~28~30~32~34~36~38~40~42~44~46~48~50~52~54 28 32~34~36~38~40~42~44 40~42~44 50~52~54 52 58~60~62 71~73 71~73~75~77 81 93~95 105~107 118~120~122~124~126 124~126 130~132~134~136 132~134 160 173~175 179~181~183 187 193~195~197 203~205~207~209 205~207 214~216~218~220~222~224~226~228~230 220~222~224~226~228~230 236~238 246 253~255~257 259 269 281~283~285~287~289~291~293~295~297~299~301~303~305~307~309~311~313~315~317~319~321~323~325~327 301~303~305~307~309~311~313 303 311 317~319 327 334~336~338~340~342~344~346~348~350 368 374 378~380~382~384~386~388~390 386~388~390 396 400~402~404~406~408~410~412~414~416 404~406~408~410~412~414~416 406~408 412~414~416 421~423 431 436 442~444 448~450 454~456 460~462~464~466 471~473~475 479~481~483 487~489~491~493~495~497~499 495~497~499 506~508 516~518 524 528~530 534 538~540~542~544~546~548~550~552~554~556~558~560~562~564~566~568~570 550~552 560~562~564~566~568~570 562~564~566 The U.S. and Soviet Union|1351 U.S.|1352,1360,1366,1383,1415 Soviet Union|1353,1356,1368,1384,1387,1401,1403,1412,1416 technical talks|1354,1367,1372 possible repayment|1355,1363,1364,1371 $188 million in pre-Communist Russian debts|1357,1362,1385 pre-Communist Russian debts|1358 the U.S. government|1359,1395 the State Department|1361,1370,1373,1374,1408 Soviet bonds|1365 a State Department spokesman|1369 a Soviet bank|1375,1379,1382 a New York branch|1376,1378 New York|1377 last spring|1380 July|1381 the country's short-lived democratic Kerensky government|1386 Kerensky|1388 the Communists|1389 1917|1390 a 1934 law|1391,1411 Americans|1392 credit|1393 countries in default|1394,1396 members of the World Bank and International Monetary Fund|1397 the World Bank and International Monetary Fund|1398,1402 World Bank|1399 International Monetary Fund|1400 pre-1917 debts|1404 other countries|1405 recent years|1406 less than face value|1407 the pre-1933 debts|1409,1410 legal obstacles|1413 money|1414 hundreds of millions of dollars in additional debt|1417 additional debt|1418 the World War II lend-lease program|1419 World War II|1420 1351|MOD:DIST:2|NUC:DIST:4~6~8~10 1352|NUC:DIST:4 1353|NUC:DIST:8~10 1354|MOD:DIST:16|NUC:DIST:18 1355|MOD:DIST:22|NUC:DIST:24|MOD:DIST:26~28|MOD:DIST:30~32~34~36~38~40~42~44~46~48~50~52~54 1356|NUC:DIST:28 1357|NUC:DIST:32~34~36|MOD:DIST:38~40~42~44 1358|MOD:DIST:40|MOD:DIST:42|NUC:DIST:44 1359|MOD:DIST:50|MOD:DIST:52|NUC:DIST:54 1360|NUC:DIST:52 1361|MOD:DIST:58|NUC:DIST:60~62 1362|MOD:DIST:71|NUC:DIST:73 1363|MOD:DIST:71~73|MOD:DIST:75|NUC:DIST:77 1364|NUC:DIST:81 1365|MOD:DIST:93|NUC:DIST:95 1366|MOD:DIST:105|NUC:DIST:107 1367|MOD:DIST:118|NUC:DIST:120|MOD:DIST:122~124~126 1368|MOD:DIST:124|NUC:DIST:126 1369|MOD:DIST:130|MOD:DIST:132~134|NUC:DIST:136 1370|NUC:DIST:132~134 1371|NUC:DIST:160 1372|MOD:DIST:173|NUC:DIST:175 1373|MOD:DIST:179|NUC:DIST:181~183 1374|NUC:DIST:187 1375|MOD:DIST:193|MOD:DIST:195|NUC:DIST:197 1376|MOD:DIST:203|MOD:DIST:205~207|NUC:DIST:209 1377|NUC:DIST:205~207 1378|MOD:DIST:214|NUC:DIST:216|MOD:DIST:218~220~222~224~226~228~230 1379|MOD:DIST:220|NUC:DIST:222~224~226~228~230 1380|MOD:DIST:236|NUC:DIST:238 1381|NUC:DIST:246 1382|MOD:DIST:253|MOD:DIST:255|NUC:DIST:257 1383|NUC:DIST:259 1384|NUC:DIST:269 1385|MOD:DIST:281|MOD:DIST:283~285~287|NUC:DIST:289|MOD:DESC:293~295~297~299~301~303~305~307~309~311~313~315~317~319~321~323~325~327 1386|MOD:DIST:301|MOD:DIST:303~305|MOD:DESC:307|MOD:DESC:309|MOD:DIST:311|NUC:DIST:313 1387|NUC:DIST:303 1388|NUC:DIST:311 1389|MOD:DIST:317|NUC:DIST:319 1390|NUC:DIST:327 1391|MOD:DIST:334|MOD:DESC:336|NUC:DIST:338|MOD:DIST:342~344~346~348~350 1392|NUC:DIST:368 1393|NUC:DIST:374 1394|NUC:DIST:378|MOD:DIST:380~382~384~386~388~390 1395|MOD:DIST:386|MOD:DIST:388|NUC:DIST:390 1396|NUC:DIST:396 1397|NUC:DIST:400|MOD:DIST:402~404~406~408~410~412~414~416 1398|MOD:DIST:404|NUC:DIST:406~408~410~412~414~416 1399|NUC:DIST:406~408 1400|NUC:DIST:412~414~416 1401|MOD:DIST:421|NUC:DIST:423 1402|NUC:DIST:431 1403|NUC:DIST:436 1404|MOD:DIST:442|NUC:DIST:444 1405|MOD:DIST:448|NUC:DIST:450 1406|MOD:DIST:454|NUC:DIST:456 1407|MOD:DIST:460~462|NUC:DIST:464~466 1408|MOD:DIST:471|NUC:DIST:473~475 1409|MOD:DIST:479|MOD:DIST:481|NUC:DIST:483 1410|MOD:DIST:487|NUC:DIST:489|MOD:DIST:491~493~495~497~499 1411|MOD:DIST:495|NUC:DIST:497~499 1412|MOD:DIST:506|NUC:DIST:508 1413|MOD:DIST:516|NUC:DIST:518 1414|NUC:DIST:524 1415|MOD:DIST:528|NUC:DIST:530 1416|NUC:DIST:534 1417|MOD:DIST:538~540~542~544|NUC:DIST:546|MOD:DIST:548~550~552|MOD:DESC:554~556~558~560~562~564~566~568~570 1418|MOD:DIST:550|NUC:DIST:552 1419|MOD:DIST:560|MOD:DIST:562~564~566|MOD:DIST:568|NUC:DIST:570 1420|NUC:DIST:562~564~566