WILL NOT PARTICIPATE

Chronicle (Levin), 28 July 1947, Page 5

WILL NOT PARTICIPATE

Press Assn.

• - : — =" — ~ Russian Attitude To Japi / Treaty Talks

By Telegraph

-Covyright

Received Sunday, 9.20 p.m. - WASHINGTON, July 26. The State Departnient disclosed that all eleven nations of the Ear Eastern Commission except Russia favoured holding a conference on the Japanese Peace Treaty along the lines suggested by the United States. Ten nations had replied either formally or informally approving the proposal that a conference of the representatives of eleven nations niost directly. concerned with Japan meet in Washington 011 a date tentatively suggested as August 19. The. British Commonwealth of Xations, however, suggested a later date because of tne Caiiberra Conference scheduled for August 26 and also proposed that the Washington meeting be on a ministerial level and not be conlined to deputies of Foreign Ministers and experts. The United Press says that this makes posti)oneinent eertain, probably until after the United Xations meeting in tlie autumn. The United States is still hopeful that Russia will partieipate. The Associatcd Press 's correspondent in Xanking reports that the stamling committee of the People 's Politieal Council while approving the proposal for a preliminary conference in Washington decided to demand that Cliina retain her veto power and to refuse to resume trade with Japan until the treaty is actuaily signed. "The. trade talks broke (lown not on prices but on linancial concessions asked for in the 1941 agreement," said Mr. Harold Wilson at a press conference in Moscovv. before leaving for London. "Tlie Soviet Governmeul made the linancial question a condition of any comprehensive trade agree ment." Mr. Wilson added that a sinai I timber agreement was signed last week, also a contract for the supply oi' pit props. Reuter's Moseow correspondent says. tlie concessions asked for would cost Britain several millions sterling. Bota sides made final oll'ers, but ultiniately it was found impossible to bridge the gap and it is. undersfood the 1941 credii remains in full force. Under the 1941 agreement, says thc Times 's diplomatic correspondent, Britain supplied Russia with goods valued at £1(10, 000, 600 011 tlie under standing that £40,000,000 was paid in cash and £00, 000, 000 by eredit repayable over seven years at three per cent The rate of interest xvas reduced Jast vear to two pef cent. Latelv the Russians asked for a reduetion to one-half per cent. and for an extension of thc re>{)ayment period.