PROBLEMS IN ISSUE

Rotorua Morning Post, Volume 3, Issue 670, 24 October 1933, Page 5

PROBLEMS IN ISSUE

(Press Assn.-

NATIONAL DEBTS AND CONFISCATIONS INVOLVED RECOGNITION NOT CERTAIN

— By Telegraph — Copyright).

New York, Oct. 22. After news had been received that the Soviet proposes to rush a representative to White House it was stater unofficially that M. Litvinoff probably will meet President Roosevelt in about a fortnight to discuss the question of the resumption of diplomatic relations. A large increase in the trade between America and Russia is anticipated should the conversations solve the obstacles to recognition. The American Federation of Labour and the American Legion already have expressed opposition to recognition. The President announced at a Press conference that he had invited a representative of the Soviet Government to conf er with him. There is nc class in the country more interested in the fruits of recognition of the Soviet, if it folldws the negotiations, than the farmers who are impatient with the N.R.A. There are large markets in Russia for cotton. Most of the members of Congress now in Washington commend the President's approach to the Russian problem. S'enator E. Thomas (Dem., Oklahoma) declared that a letter on the subject written by Mr. Roosevelt to Kalinin was tantamount to recognition of the Soviet. Senator R. R. Reynolds (Dem., North Carolina) said: "Russia can use 1,00,000 bales of cotton now and many hundreds of thousands of bales every year. Recognition will go a long way toward solving the surplus cotton problem." Senator W. H. Iving (Dem., Utah) , who once favoured recognition and changed his opinion since his recent visit to Russia, has now declared himself in opposition to it on account of Russia's propaganda activities. Four Principal Problems The four principal problems which will face Mr. Roosevelt and M. Lit- ■ vinoff when they starfc their discussions are: — (1) Russian propaganda in the United States for the overthrow of the existing form of government; (2) the debt contracted by the Kerensky provisional Government iii 1917 of 187,000,000 dollars, due to the United States Treasury; (3) the confiscation of American properties in Russia, and the repudiation of 86,000,000 dollars of priva'te loans by bankers to the Czai'ist Government; (4) the rights of American citizens in Russia. A Berlin message states that politieal quarters there welcome the Rus-so-American rapprochement as tantamount to recognition of the Soviet, whose inclusion in international life should hasten the restoration of normal conditions throughout the world. Diplomatic relations between Russia and America eeased in 1918. Since then American claims, private and Government, have grown to 800,000,000 dollars. The Government's share of that amount is 332,000,000 dollars, representing cash advances for war purposes and relief work with accrued and unpaid interest. It is expected that all the claims will be submitted to a mixed eommission and that the preliminary discussions with M. Litvinoff will be eonducted by Mr. Roosevelt personally. Russia took 111,000,000 dollars' worth of American goods in 1930 and 103,000,000 dollars' worth in 1931, but only 12,000,000 dollars' worth in 1932. Stock market operators who expected the negotiations with the Soviet to stimulate prices were sadly disappointed as the New York Stock Exchange suffered the sharpest decline for several weeks. Bonds and most commodities were weak, although wheat rose moderately. Observers express the opinion that recognition of the Soviet is already discounted.