BRITAIN AND RUSSIA

Hokitika Guardian, 15 May 1929, Page 8

BRITAIN AND RUSSIA

TRADE .MISSION WELL RECEIVED

The British Trade -Mission to Bussiii Inis liecn well received on its nrri vnl at Moscow (says the London Daily Telegraph of March 30.) There is not much doubt that the original suggestion of the mission came from the Hus sinn side to the Anglo-Russian Com mitt6o in this country, which is hent upon restoring official relationship, and it is no less certain that a large hod.v of opinion among British industrialists is in flavour of developing Anglo-Hus-sian trade hy all reasonable and practicable methods. Hence the influentia: gathering of manufacturers and traders which met in London early last month, and resolved to form a representative delegation. Nor can the representative character of the 84 members of this mission he gainsaid. The leading agricultural engineering firms are strongly represented; general engineering firms, motor interests, and

road-making and constructional building industries are very adequately represented; and a good sprinkling o! members are associated with coal, cotton, textiles, hoot and a great variety of other interests. At the same time as our correspondent points out, certain linns are missing from the list whose presence one would natural!' have expected. Some (VI these, it may he are already in possession of all tic |;H.s which they desire relative to trade openings in Russia; others may tie firmly resolved, as things are at present, not to embark upon any com mitments with the Soviet Government since it is the Soviet Government as the oniv legal importer of foreign goods into Russia, with which they have to deal, and not the individual Russian traders. In circumstances so exceptional it would he surprising indeed if there were anything like unanimity of opinion as to the chances ol this mission achieving useful results. As we understand it, however, this is purely an exploratory mission. The delegates have gone with an open mind to see for themselves how matters star,.!, and what chance there is of doing business. If business is t.< he had they are anxious to get it, for Great Britain wants all the export trade she can get, and Russia stands more sorely in need of commodities than any great country in modern times. Nevertheless, it remains* with the Soviet authorities to determine whether trade relations shall he quickened or not, for it is they and the wholly peculiar angle ifrom which they regard past obligations which raise the existing obstacles. The mission may have very large results, or it may prove as fruitless as others which have preceded it. The delegates will soon detect promising trade openings hy the score, hut the openings are obstructed at present hy harriers not of the ordinary tariff variety, but of a purely po.--.cal kind. M. Khinchuk the president of the Western Chamber of Commerce, who welcomed the delegates at their first meeting, alluded to the fact that Soviet orders placed in the British market last year were only a fourth otf what they had been in 1924o the year which followed Great Britain’s official recognition of the Soviet Union. The suggestion of course is that if diplomatic relations broken off after the Areos raid and the exposure of Russia’s persistent bad •faith in respect of hostile propaganda were renewed, Russia would again appear as a large buyer in the British markets. Such has been the general tone of comment on the mission in the Moscow press and it lias been accompanied hy strong hints that it will pay Great .Britain even more than Russia to restore official relations. The official Izvestia actually welcomes the mission as “a first sign that British industrialists are determined to break loose from the shackles which British officialdom, with its customary bigoted and narrow vision, lias imposed on the development of Anglo-Russian trade.” If that line of argument is pressed in Moscow it will not facilitate agreement hut it undoubtedly expresses the views of the Third International compared with those of the more moderate members of the Soviet- executive —the policy of the Third International being war to the knife against all tilings British.

it. may l>e useful to recall that just a year ago Moscow sent a trade delegation to Tier I iti to discuss a trade treaty, lmt wlieu tlie delegates got there they asked tlie German Government for a new revolving credit ol (500,000,000 marks and a long term loan to he floated in Berlin. When both requests were refused the Soviet mission approached the leading German Banks, who replied that they would not advance a mark until Russia had recognised the existence o*f private property and provided acceptable guarantees for the sanctity of private contracts. The refusal of these conditions was underlined by the sensational arrest of the German engineers. A little before, M. Litvinoff bad had ait hour’s conversation with Sir Austen Chamberlain, in the hope ol finding

a modus vivendi, which ended in the usual failure, and as recently as last November the Soviet Government absolutely prohibited the transit through the territory of the U.S.S.R. ol a long list of foreign-made goods—inclubiug fabrics, yarn, electrical implements, rails, and nails—many ol which figure prominently in the trade lists of members of the present mission. These unpromising factors do not, of course, 'foredoom this mission to failure. Hut they do show what awkward obstacles to its success exist in -Moscow, and, unfortunately, in the highest and most authoritative places. Failure is certain if Moscow mistakenly assumes that this British Mission is a proof of British industrial distress. That the Soviet Government will try to give a- diplomatic turn to the mission may he expected, nor is it undesirable, provided that they are ready to do a little giving, as well as taking, and when they have given their word, to keep it. The business men in this mission would have an easy time were there no political complications. But these enmesh the whole problem from beginning to end.