THE DRAFT AGREEMENT

Dominion, Volume 14, Issue 48, 20 November 1920, Page 9

THE DRAFT AGREEMENT

With reference to the agreement drafted' by a special inter-departmental committee for the resumption of trade relations with Soviet Russia, the "Daily Telegraph" (London) of September 30 says that it has aroused the strongest opposition in banking and business circles. "The agreement is understood to run on the lines laid down by the British' Government in the statement-made by Mr. Bonar Law on July 14 in connection with the stillborn scheme for 1 turfing through the co-operative societies (continues tiic "Telegraph"). This statement merely provided tor the recognition of debts due to judividuals for supplying gcods and services, the. case being given as an illustration of a merchant who had supplied 1000 ploughs to Russians, aiul not a word was said as to the recognition of other obligations incurred by previous Governments or municipalities or railway companies. At the time it came as n shock to the business world, but as the scheme proved abortive littlp was heard about it. "While the terms of the new proposed agreement have not yet been published, sufficient lws become known of them to induce iv strong protest to be made by the. Bankers' Association. In their communication the bankers request the Government to insist as a condition of resuming trade relations with Soviet Rtis ; sia that all bona-fide debts, whether owing by the Russian nation or its nationals, should be recognised as obligations to be discharged by that Government or its successors. Such debts obviously include bonds issued by any previous Ru.ssiau Government, the obligations of Russian municipalities, debts due to individual British subjects, compensation for losses through confiscation of concessions or other private property in Russian dominions, etc. In short, what is required is an acknowledgment of the principle hitherto recognised by all civilised'nations that a Government is liable fo.r*the actions o£ its predecessors.

"With a debt of ,ioG8,(H)0,000 due to us for advances to the previous Russian Government', apart from the obligations of municipalities ..nml railway companies, it is clear thftt the Chancellor 1 of ; the Exchequer could not be a party to the proposals which have produced such . a stronsr protest from the bankers. ,As llio guardian of the country's financial' interests he cannot agree to surrender an immense sum at the mere bidding of an inler-departmental committee. No one looks for payment either to-day or in the immediate future, ljjit althnugli the Prime Minister's bursting corn bins may bo temporarily a myth, Russia is ft country of enormous resources, and when I lie present Soviet Government is replaced by a sane administration with a sense of realiiies which realises that credit is conditioned bv honest dealing, there is little doubt that in time we shall not have a wholly bad debt to write off.

"As to the wnposnl that our Govern, nient. should undertake Hint gold exported to ill is country by the. Bolsheviks •should not be attached, even if other Government;! or firms should take proceedings, in that direction, we can only nsk how Ion? our friendly relations with France would 'last in such an eventuality. Prance and other creditor comu tries have a, lien just as much ns ourselves on' the resources of Russia. and the last thing we should do is to encotiragc the Soviet Government to fritter them away without even linvinfr obtained, an.t* acknowledgment of the debts winch she owes. The tankers' protest will, it is to be honed.' imve the desired effect, Kilt if the obnoxious clauses ill the agreement are not deleted it is certain tb.it their protest will be reinforced by an outorv from the whole of the business world."