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Hokitika Guardian, 14 October 1924, Page 2

Tim financial side of the Russian Treaty is dealt with hy a hanking journal which proceeds to say that two recent political events of great importance to the financial world are the inclusion of representatives of Germany in the London Conference, which is sitting for the purpose of considering the best means ol putting; the Dawes reparation scheme . into operation, and the agreement between Britain and Russia. The second event was the more remarkable liecause its announcement immediately followed a statement that the negotiations which had I'.een carried on for some months with .Soviet delegates had ended in failure. Undoubtedly the most important pait of the general treaty which has boon signed between this country and Russia is that dealing with claims a.llo'tho conditional promise of a loan. While the Soviet Government, do not withdraw the decree hy which the debts of Russia were repudiated, they declare that “hy way of exception they will satisfy,” in the conditions prescribed in the treaty, the claims of British holders of Joans issued or taken ofer or guaranteed hy the former Imperial Russian Government. At the same time the British Government recognise that the financial and economic position of the Union renders impracticable the full satisfaction of these claims. The Soviet Government agree to meet the claims “other than holdings which were acquired by purchase since March l(i, 1021, and were in other than British ownership on that date.” Negotiations between the parties concerned "ill he entered into, thou the terms will he the subject of an agreement, provided the British Government are satisfied that such terms have been accepted by the holders of not less than one-half of the capital value of British holdings in the loans. When all tho multifarious negotiations are concluded, and the various commissions have come to an agreement, the results will he incorporated in a treaty. When tho treaty has been signed the British Government will recommend Parliament to guarantee the interest and sinking fund of a loan to he issued to the Soviet Government. But the treaty "’ill-not come into force until the loon < Is guaranteed. An obvious comment upon-till this is that wn if Parliament 1

consents it by no means follows that the bankers and other representatives of the financial world will approve, and they and not the Government will have to provide the money. In this connection it is useful to recall the conditions laid down by tlio Bankers’ incmoran dnm of April last for the restoration of Russian credit. The conditions included also the recognition of private and public debts, the restoration of confiscated property, a guarantee that such property should ho free from confiscation in the future, the rc-establish-ment of ii 1 c sanctity of private contracts, tlio effective application of n proper civil code, tiro creation of independent courts of law, freedom from British bankers, traders and others to deal freely with Russian institutions unmolested by government interference, and the abandonment of Bolshevist propaganda. Until there is a definite undertaking in regard to these points and an assurance that the terms will he faithfully observed, it seems useless lor the Soviet delegates to promise to consult with the bondholders on the question of outstanding indebtedness. At present Russia owes Rritain, approximately one thousand million sterling, apart from £BOO to £BSO millions advanced by the Allied Powers during the war. The advances made by the British Government direct may he wiped out entirely, but they represent a debt as muc h as the huge sums borrowed by Raissia in the past for State expenditure, the development ol municipalities ancl the construction ol i ailways, etc. If arrears of interest since January, 1017, on this thousand millions are added ancl the rate is calculated at > per cent., a gross total is indicated of approximately .C2.000.0C0,000.

Tin-, fact that the Postmaster-General has accepted a tender for four years for a thrue-weekly mail service between Hokitika ancl AYaiho Gorge, will give general satisfaction. It is a matter on which there lias been a good deal of local agitation and the service should fully justify itself. Motor services will thus be fully established, which will be a great convenience and advantage to the south district as a whole. -Motor transport has brought the southern parts very near the centres now, and with a uselul mail service as proposed, the advantage will he all the greater. Apart from the gain to Hie residents, there will he the special convenience to travellers, the number of wliolil going south is increasing. The W'ailio Gorge lends Use'll as a very cointortable winter resent, so that all the year round, with regular mail services prevailing, there will Is? greater inducement for more trallic. The timetable will be at ranged no doubt with llie object of lilting in with train services north and east, while it is quite likely that in the near future there will be rather important developments in motor trallic north in competition with the railway service, • about which I hero is so much c omplaint regarding the protracted journey by slow mixed trains. The facility to be afforded to trallic by the bridges c.n the south read will pci mil of quick and assured traffic on the days of running. The Hon. Coates happens to he both Minister ol Public Winks and Postmaster-General and lie. is familiar with the needs of the South in regard to both roads and bridges. It is understood lie lias given instructions as Minister <>! Public Works, that the south mail is to be placed in greatly improved order to meet the requirements of the traffic, and the execution of flu- instruction will help the motor mail service greatly. Tile new mail contract, which is for four years is to take effect from the Ist January next, and should play an important part in assisting to dovelope and open up southern toriitory. The greater convenience of the new service will he highly appreciated by the settlers and all interested in the progress of South Westland.