TRADE WITH RUSSIA

Hokitika Guardian, 28 August 1930, Page 2

TRADE WITH RUSSIA

Since Britain renewed diplomatic, and commercial relations with Russia,, the British Government has adopted a' rather remarkable method of encouraging trade between the two countries. It has practically guaranteed the credit not only of 'Russian, merchants, but of the Russian Government, on account of the purchase of British goods, and the system has grown so rapidly that a serious discussion arose' over it recently iii the Hcriisfe of Lords. Viscount Brelltford stated that at the present rate tjf development, the liability of the British Government in regard to Russian trade would soon be £5,000,000 » year, and he wanted to- know what would be the position of Russian trade bills accepted by the British Government and discounted in the Money Market, if diplomatic relations with Russia were broken off again. Viscount Elibank also wanted to know all about a consignment of Cuban sugar, which had ben refined in England but which represented only about 10 per cent, of British, workmanship, and which had been guaranteed by Britain up to 75 per cent, of its value. The chief difficulty about this transaction is that Cuba is an American and not a. British dependency, and it is impossible to quote in its defence Lord Passfield’s excuse that a guarantee for the Russian purchase of West Indian sugar would help the British sugar, planters. Evidently the MacDonald Government is prepared to go a very long, way in offering encouragement to Russia to build up trade with Britain. BOLSHEVIK GOOD FAITH. Of course, Lord Passfield’s critics in the House of Lords have enquired whether the Government really thinks it safe to indulge in financial operations with the Dictatorship of the Proletariat as a partner. Lord Passfield assured the House that lie and his colleagues firmly believe that “Russia will meet her obligations with regard to all these commercial transactions.” I wonder how many British merchants and financiers share his confidence in the good faith of Bolshevism. Here is a singular illustration, of the difficulties to be faced in dealing with Russia as now constituted. Before the war a large British company floated the Lena Goldfields in Siberia. After the Revolution the Bolsheviks seized all the property, and, as usual refused to pay any compensation. They then attempted to utilise the workings for themselves, hut, being unable to make headway, they offered the concession to a new Lena Goldfields enterprise, which was really the old company under a changed name. One condition was that £2,000,000 must be expended on the property. But. when this had been done the. Bolsheviks played the usual game once more. They arrested and punished certain employees of the company as “counter-revolutionaries.” They then charged the company with not having paid its workmen. Then though these accusations were specifically disproved, the Russian representative was forbidden to attend the Arbitration Court set up to consider the case, and finally the concession was declared forfeited, so the shareholders in Lena goldfields lost their money again, and the bait will be east once more for the benefit of credulous concession hunters or magnanimous Governments charitable enough to guarantee them. But wlm,t I cannot understand is why either British financiers or British politicians should ever putany faith or trust in the promise of