GENOA CONFERENCE

Hokitika Guardian, 24 April 1922, Page 2

GENOA CONFERENCE

AUSTRALIAN AND N.Z. CABLE ASSOCIATION. GENEVA, April 21. The Opium Traffic Commission of the League of Nations is inviting the Council to restrict importation of dangerous drugs. The system is proposed to be enforced as regards Australasia on January Ist.

GERMAN note. GENOA, April 21. The Germans note adds that the Germans were pressed to sign the agreement with Russia, as their interests had been neglected by London, and if they had not accepted, the Russians might have been asked for burdening reparations.

WHAT RECOGNITION MEANS. GENOA, April 22. At the First Sub-Committee, M. Bnrthou (France) pointed out that the Russian reply lias exacted recognition de jure in return for recognition of debts while the Cannes resolution stood without that qualification. The point, however, was not pressed.

It is probable that the financial assistance to Russia will take the shape of credits, and not a loan. It is expected that a fortnight will conclude the conference’s tasks.

The recognition of Russia is likely to take a progressive form. Firstly will i oine the resumption of commercial, relations, with a guarantee respecting Rusian courts giving security to foreign nationals, and with the appointment of Russian charges d'affaires. Then if it is seen that Russia is holtcurably carrying out tlie pact, full diplomatic recognition will be accorded.

RUSSO-GERMAN CRISIS. GENOA, April 22

A Russo-German crisis has again arisen, in consequence of a new French protest against the treaty as infringing tie Versailles declaration. The German reply is considered inadequate. The Allies are privately considering the position.

VATICAN RECOGNISES THE SOVIET. GENOA, April 22

The Vatican has resumed relations with the Soviet. The Vatican and the Soviet have signed a treaty, under .vlrich the Soviet admits the Catholic religious orders of the Jesuits and tlie Franciscans into Russia. This is intercepted as the Vatican s 1,1 sc. step towards bringing the RussianOrthodox Church under the Roman Catholic Church.

RUSSIAN REPLY. GENOA, April 21. At the Genoa Conference the Russians have submitted their reply to the Allies’ proposals. In reference to the question of the debts of the old Tsarist regime, the Russians quoted the abo--1...011 of slavery in America without compensation. They also quoted America’s action in going dry without Any compensation to the liquor sellers. The' Russians proved themselves quick-wit-ted. They were quite a match In diplomacy for their opponents. ' It is" believed that the situation as laid down in the Russian reply, presents no Insuperable obstacles to a Russian settlement.

A committee' bf experts lias already heguu the task

GENOA, April 2i. As Mr Lloyd George predicted yesterday, the Russian reply is sueli as to enable’ the Russian Sub-Committee of the First Commission to begin its labours. The Germans also have officially confirmed the Prime Minister’s statement, agreeing to their exclusion from th' Commission on Russia. Therefore the outlook for a successful outcome has lias materially brightened. The points which the Allied Governments laid down in the informal con. versations, whereon the Russians felt impelled to refer to Moscow were: “Firstly, the Allied Governments cannot admit- any liability regarding the claims advanced by the Soviet Government.” “Secondly—ln view of the serious ec0110mic condition of Russia such creditor Governments are prepared to write down our debts owing by Russia by a percentage which v ill be determined later.”

Tne Allies were prepared to consider not only a postponement of the interest payments upon their financial claims but also a remission of some parts of the arrears of the Russian debt interest, or of the postponed interest. The Allies affirmed however, that it must definitely be agreed that there could be no allowance made to the Soviet Government against other debts or financial obligations due to foreign nationals with regard to the return of pro. perty and to compensation for damage or loss.

The Russians in reply, are still of the opinion that the present economic position of Russia is such as to fully justify a complete release for Russia from all her obligations mentioned in the Ai-ied proposals, by reason of her counter-claims. However, the Russian delegation was prepared to make a further step towards a solution and an adjustment of differences by accepting the points the Allies have laid down provided that adequate help is given to her to recover from her present economic state. If this were done, she would be willing to restore any property that has been nationalised,, or with-held, or where this is impossible, to otherwise satisfy the Allies’ claims. Foreign fin. ancial help was absolutely essentialTrbr Russia’s economic reconstruction. Without it the Russian delegation were unable to see their way to saddle the country with debts which could not be discharged.

Further, the Russian Government could not admit any liability for -its predecessor’s debts, until the Soviet has been formally recognised by the -■*■ Rowers concerned. The reply fSJslgnecl by M. Teliitcherin. When the Russians’ reply was received the First Sub-Committee informally considered the matter. The reply was generally accepted as a hopeful basis whereon a discussion could be (based. A Committee of Experts was immediately appointed to investigate the details, consisting of one expert from the Five Allied Powers, one from the neutrals, and one representing the LB,*, tie Entente. S|f||

It may be regarded as certain that the main controversy will centre on the question of compensation to nationals for property confiscated or destroyed in Russia, because it raises the question of interference with Russia’ internal policy. Nationalisation was the slogan of the revolutionary policy and the Soviet cannot be expected to depart theiefrom.

BRITISH JOURNALISTS COMMENT. LONDON, April 22. Mr Garvin, editor of the Observer. . writing from Genoa, says: ‘Geimanj s signature of the Russian Treaty was due to a spasm of suspicion and fear. Genoa is infected with lies. The Geimans heard quite erroneously that the Russians and the Allies had nearly reached a agreement, and the Germans feared their economic interests with Russia might be prejudiced. It was not the Bolsheviks’ fault that the treaty was not signed at Berlin when they were on route to Genoa. Hie Russian and German peoples are economically necessary to each other. Ihe Bolsheviks would have been fools not to have signed. Instead of offering the mailed fist, as at Brest I.itovsk, Germany. Catne, cap in hand. The Allies were at first stupefied and astonished. Then they consolidated, Mr Lloyd George had risked the Entente’s continuance and his own political existence in order to restore a working concert in Europe, by including Russia and Germany as members of the conference. Yet the first use the Germans made of their, new footing of equality was to invoke , the old, fatal doctrine of two camps, j The Germans had themselves to blame if it was universally felt that they would next proceed to a political and military alliance. France's first impulse was to smash the Genoa Confer- J once and occupy the Ruhr district. Could Mr Lloyd George and Italy save Germany from herself? Our fate hung upon a hair Fortunately the skies cleared, The Russian reply proves far more reasonable than was expected j The German difficulty has been over-j come apart from its legacy of friction and lessened trust. Next week must make or break the conference. It is most likely to last a fortnight. I am convinced that it will achieve great and memorable results, unless France prevents it. Mr Lloyd George is—as he was in the blackest moments of war—indomitable and formidable. His dexterity is dragging the comerdnce towards success. He believes that it will achieve big purposes, and form the basis of subsequent disarmament, on which a new Europe may ! be based. He believes that continuous j work onwards will be carried out to-

wards this end by n strengthened and extended League of Nations; that the world’s life depends on this; and that the alternative thereto is the fall of European civilisation.

FRENCH ATTITUDE

CAUSED A CRISIS

fßeceived This Dav at 8 a.m.) GENOA, April 22. The Conference sustained a further shock when it was reported that * France had sent a note to the Powers "** declaring the Russo-Ge:man Treaty violated the Versailles Treaty. At the outset, it looked as if a major crisis had arisen. The British delegation was hastily summoned, followed later in the day by a meeting of Five Big and Four Small Powers, at which M. Barthou argued that the Treaty contravened the Cannes resolution, to say nothing of the other Treaty engagements with Germany; that it would he incompatible with French dignity to continue to co-operate with the German delegates oti Russian affairs. The French delegations also referred to the Russian comments on the London experts report, M, Bnrthoit declared the French exports could not sit on the expert committee appointed to deal with Tcbiicherin’s reply, until these comments ad been discussed. Air Lloyd George pointed out that the comments were unofficial and were merely issued in the press by Russian propaganda as part of their normal activity, adding that Ihe Russians admitted the comments applied to their past opinions, not to their present ones. ' Air Lloyd George declared he wished to get oil with the Conference, instead of having the time taken up with too crisis, otherwise he would have to explain to the British Empire and the world generally who was responsible lor these delays. After further discussion, the meeting broke up in an apparently happy frame

o| mind. It is proposed to resume the general work to-morrow. It appears as if the anxiety caused by French action had been dissipated. The Financial Commission approve l of the sub-committee’s report for presentation to the Plenary Conference. In addition to the recommendation already published it declares it is desirable that European currencies should lie based on a common standard. There should lie a gold standard only, but so long as deficiencies in annual budgets arc met by the creation ol fiduciary money or bank credits no currency reform is possible, and no approach to the gold standard can be made. The balancing of budgets requires adequate taxation, but if (government expenditure is so high as to drive taxation to a point beyond wliat can be provided out of the country’s income, taxation may itself lead to inflation and therefore a reduction in Government expenditure is the true remedy. The report suggests an international convention to centralise and control the demand lor gold. Credit should lie regulated to maintain currencies at par with one another, also to prevent undue fluctuations in the d *• purchasing power of gold, although the discretion of central hanks should not be fettered by definite rules on the nsiint

LONDON, April 211 The “Sunday Times” Genoa correspondent says it is most difficult to deal with the French delegation. What they expect to gain by niggling tactics is not clear. The Russo-German Treaty is signed anyway, but even that might have been avoided but tor M. Barthon's attempt to keep the Germans outside the inner working of the Conference. The present French tactics can only succeed in driving their two bete noire’s closer together. We hoar rumours of action from Paris which, instead of breaking up the Conference from within, will torpedo it from without. The pretexts are baseless. There is not one word of truth in the report ( ,f a military convention between Get'

> many and Russia. Nothing but the ■ French “Intransigeanee” itself could i organise by degrees that final solidarity leading to another armagedon. The wrecking of Genoa Conference by a torpedo from Paris would mean the ultimate suicide of France, for Britain cannot commit suicide in sympathy with her. Either there will be a beginning of a new Europe after Genoa Conference or soon there will be no Entente.

THE AIR CLEARER. Received This Day at 11.30 a.m.) GENOA, April 23. Tile situation lias become more serene, after the consultation between the ten Powers this morning. Bratiano on behalf of the Little Entente and Poland, said the recent signing of the Gcnnan-Russian treaty emphasised the need for solidarity amongst those who established peace. The Allies co-operation was essential to Europe’s stability. Air Lloyd George agreed, and said he felt hound it his duty to his people to make it quite clear that the British Empire was set on peace. At. Barthou welcomed the statement, [n reply to Germany, he emphasised that there was no justification for Germany's statement that grievous difficulties for Germany ha<l been created by the London experts. The report merely created the basis for discussiyn wherein Germany had the fullest opportunity of participating.

LLOYD GEORGE’S HOPES

Received This Day at 11.30 a.m.)

PARIS, April 23

Tne “Echo de Paris” Genoa co - respondent says Air Lloyd George is busy with a plan for the European pact and hopes to put the finishing touches on Wednesday, The chief obstacle, m Mr Lloyd George’s opinion, is the absence of frontiers in Eastern Europe. As the Allies have not ratified the Treaty Riga and Eastern Galicia will not be handed to anyone, while the So\ let claims Bessarabia, which the Powers assigned to Roumania. LONDON, April 23.

The Allies unanimously sent a note to Germany closing the Russo-German incident, the Conference has resumed.

IJ.OYD GEORGE’S VALUE. ■’Received This Dav at 9.40 a.m.) GENOA, April 23

British Dominion representatives at a. meeting of the Empire delegation took a strong line in regard to the irritating delay caused by the springing of the recent crisis. their outspokenness on the subject largely influenced Air Lloyd George’s declaration that he would let the world know who was responsible for these matters. If tho conference survives these various 1 shocks it will lie entirely due to Mr Lloyd George’s handling of flu* troublesome elements. There is good grounds for saying that Poland. Czecho-Sla vakic and Roumania are

prepared to sign a similar movement, to Russia, if the Conference fails to evolve a united agreement.

ten towers reply

Received This Dav at 11.30 a.m.) GENOA, April 23. The ten powers met and signed a reply to the Germans. Air Lloyd George said the British Empire was anxious to work closely with the Allies for the cause of peace, on which they wer determined, hut he feared that the co-operation of some of the Allies tended the other way. Tie was determined to surmount the obstacles in the way of peace. AI. Barthou stated France desired peace ’ and welcomed Air l.loyd George’s words. France mcrjnt to work loyally with the Allies on behalf of peace,

Air Lloyd George said although the German incident was closed, the points of the treaty had not yet to he raised on the Russian Commission.

The reply expresses satisfaction at the withdrawal of the Germans from the Russian Commission, but adds that the German excuses are not pistituible until the Treaty is signed. Jt is not suggested that the London proposals did not afford a basis upon discussion. The Rowers reserve the right to declare void the clauses contrary to the existing treaties.