BRITAIN’S SOVIET DECISION.

Hokitika Guardian, 27 May 1927, Page 2

BRITAIN’S SOVIET DECISION.

ROSENGLOTZ’S STATEMENT

[Australian <fc N.Z. Cable Association.] LONDON, May 25. M. Rosengllotz in a statement on behalf of the Soviet declares the British decision to sever relations with the Soviet concerns the whole world and, therefore, wo cannot hut express amazement and deep regret that such nil important decision should be reached on such flimsy pretexts, that such doubtful arguments should be used to justify the action.” Definite conclusions are to he drawn from Mr Baldwin’s statement; firstly, that not a particle of evidence that the mysterious document allegedly lost ever found its way into a Soviet house or was handled by any employee of the Trade Delegation ; secondly, there is not a particle of evidence that the delegation, Arcos or employees engaged in military espionage or similar work. Whatever Mr Baldwin said thereon was nothing but an unfounded allegation. The reference to a siibterannean room quite accords with cinematographic requirements, but the room in itself had no criminal intentions. Such arrangements now exist in most large commercial undertakings where they are utilized for commercial purposes such as Arcos. Likewise the story of Muller Ibtirning papers is believed to he in the same catagorv. Sensational declamations were intended to strike the public imagination. There is nothing mysterious or criminal in Muller’s action. because according to the well established practice, the cipher department was merely burning copies of deciphered telegrams. On this occasion it was burning Klinchuk’s cipher prior lo admitting the police. LONDON. May 25. “No paper fell from Muller’s pocket. What Mr Baldwin described as a struggle was really an attack by four or five police on Muller, who question by us denies lie possessed a list of secret addresses. Evidently Mr Baldwin in this respect was misled by the inventors of the story or mistook the list of the branches of the Soviet Trade Delegation for secret addresses. Snell a list was in the room hut was neither illegal nor criminal. Mr Baldwin's description of Jilinskv was evidently derived from the information of discharged Arcos employees, who gave it to the police because Jilinskv was manager of the staff and was connected with their dismissals which probably accounts for the mysterious lying denunciations concerning hint. The dismissals included one, Langston recently in charge of photostat. Mr Baldwin abstained for obvious reasons from quoting a sentence from J ilinsky’s recommendation of Koling in which he stated Killing in 1925 was dismissed from the Bl.vtli branch of British Communists owing to Soviet citizenship. The trade delegation had no knowledge of the letter describing the training of Communist agitators on Arcos ships. The circumstances of the search render it impossible to determine whether the letter was taken from Killing's pockets or whether the police took possession of it on some other occasion. Anyway, such documents are the private affairs of Koling, over which the delegation has no control, possibly Koling acted contrary to the Soviet’s strict rule, that employees shall not engage in political activities, but the trade agreement contains no clause making the delegation responsible for the contents of employees pockets.” M. Bosengoltz denied that he himself or anyone of the staff’ of the Embassy received or sent such telegrams as Mr Baldwin quoted. He added: “The British Government is abrogating itself the role of prosecutor, judge and jury, and demonstrates to ' the world the weakness of the case and unwillingness to place the dispute with the Soviet before the impartial judgment of the world, and public opinion. LONDON. May 25. Sir A. Chamberlain read a memorandum recording the Soviet Charge D’Affaires conversation with him in reference to the raid in..which Rosen goltz complained that the ri.l vio'lated trade agreement and nitd national courtesy; that women cmokiyevs were searched by male police; that Madame Bosengoltz was detained; that the police went first to Kitchuk’s office and seized his cipher papers, though Kiteluik’s enjoyed diplomatic privilege; that only days before the raid an arrangement was with with the Midland Bank for a loan of ten million, with tho object of increasing Anglo-Russian trade. Bosengoltz added that he supposed the raid was undertaken to bring this agreement to nought and worsen Anglo-Russian relations which were already had. Rosen" goltz further claimed some rooms were searched in the absence of the Russian representative and appeared to suggest the documents might be found there which were not present before the raids. Sir A. Chamberlain added that for the moment all he desired to make clear was that the raid was not an administrative act, but a process of law. undertaken in pursuance ot a warrant such as would he issued in connection with any other establishment.

The Foreign Minister in answer to further questions said “Before the raid I had not heard of credit agreement with the Midland Bank. When Rosengoltz suggested the object of the raid was to upset the agreement, I simply shrugged my shoulders. I thought the suggestion did not need a further renlv.”

In reply to a question “Have you ever received anyone at the Foreign Office with regard to credit negotiations.’’ Sir A. Chamberlain answered “No.”

AT ARC’OS HOUSE. LONDON. May 25. A retreat to Moscow is being daily organised. Chisham House is amid an air of mystery. The large iron entrance gates are barred and callers are obliged to wait while the Conimissionaries examines their credentials through a tiny window, then if the business is sufficiently urgent, one of the gates is cautiously opened and the caller is admitted. A nunilier of new trunks were delivered this morning and the officials within could he seen through the windows busily emptying the desks and collecting bundles of documents. A Government motor delivered Hansard's report of yesterday's proceedings. Meanwhile the Arcos directors are conferring at Moorgate headquarters. They refuse to confirm or deny the Moscow report that Arcos will be dissolved. George Terri] (President of the National Union of Manufacturers) says it should he remembered, firstly, that the Soviet and Arcos are selling Britain £3 worth of Russian goods for every pound’s worth of British goods purchased, consequently the balance of trade benefit is entirely against us. Secondly, the total loss of Russian track' for the year will not amount to the loss suffered in three days of the general strike. Thirdly, the loss of our China trade which Russia engineered meant infinitely more to us than Russian truth’.

CANADA’S VIEW. OTTAWA, -May 25. Cabinet has decided that Canada shall terminate tho Trade Agreement with Russia immediately.

RUSSIAN VIEW. MOSCOW, May 25. “The British decision was no casual unexpected event in connection with the raid on Arcos,” says Litvinoff, “but the logical final issue against the Soviet policy. Tho Conservatives since they gained power, have forged documents with a programme of a ruthless struggle against British workers and enslavement of China, India and Egypt. The Government could not become reconciled to tlie existence of workers and peasants, Government sympathising with tlie proletariats class struggle of oppressed people’s national movements. The British Government is seeking at all costs to bring down the Soviet. LL"" only delayed the rupture hoping to find .her allies would jointly attack the Soviet. When that hope failed to materialise, the Government made attack alone, trusting it would signal for action by other states.”

SOVIET METHODS. LONDON. May 25. How Moscow issued secret instructions to Communists in the Dominions, is released through the Arcos raid. Sydney was tho Australian centre, and Wellington and Auckland for New Zealand. Letters consisted of two classes —first political hearing subversive propaganda; secondly, financial, regarding payments therefore. The key code was found in Muller’s rooms, showing also used codified addresses for overseas communications.

The Soviet- courier brought letters to London in a diplomatic hag. and through this means they escaped observation. Arcos opened the hags and handed the letters to Muller who posted them under the cover of addresses in Australia and New Zealand, whence they were transmitted or handed to the recipients.