WELCOMED IN RUSSIA

Sun (Auckland), Volume III, Issue 628, 3 April 1929, Page 9

WELCOMED IN RUSSIA

BRITISH DELEGATION MOVE TO ENCOURAGE TRADE Times Cable LONDON, Tuesday. The Riga correspondent of the “Morning Post” says the British trade delegation had a surprising reception at Moscow. The Communists there acclaim the event as of tremendous import, showing the strength of the Soviet’s international position. The delegates were warmly welcomed In streets where effigies of Mr. Baldwin and Sir Austen Chamberlain were paraded six months ago. The Russian newspapers claim that the visit of the party is evidence of the persistent desire of British industrialists to establish themselves on the Russian markets. They say it indicates that the industrialists disapprove of the policy of isolation against the Soviet Republic. The Riga correspondent of “The Times’* states that, owing to the scarcity of essential products, also to recent Soviet measures designed to prevent private traders receiving flour, butter, textiles and footwear from the Soviet’s stocks, a great many traders have been forced into liquidation. Official figures show that 500 shops have been closed in Leningrad alone. One result has been to accentuate the rise in prices.

Trade relations between Britain and Russia have been virtually suspended since May 27, 1927, following upon the raid on May 12 on the premises of Arcos, Limited, the Russian State trading agency in Moorgate Street, London. The raid, it was explained officially, was undertaken “to recover an official and highly confidential document relating to the armed forces of Britain, which was known on good evidence to have been conveyed to Soviet House and there reproduced by means of photostatic apparatus.” Although the document was not recovered, the search brought to light documents which, the Government considered, proved that the premises were being used for the carrying out of military espionage and subversive activities throughout the British Empire. After a debate - in Parliament the Government on May 27 notified the Soviet that in view of the breaches of the trade agreement it had been decided to cancel the latter, to terminate the privileges of the Russian representatives in London, and to suspend the existing relations between Britain and Russia. No objection was raised to the continuance of legitimate commercial activities by Arcos, Limited. The principal Russians in London were given 10 days in which to depart, and they did so within the specified time. On March 6 representatives of more than 150 British firms and associations with a capital totalling millions of pounds attended a meeting of the AngloRussian Committee, and adopted a resolution passed on February 5: “That this meeting, representing various large industrial interests, is unanimously of opinion that the intimations from the Russian Government that it would welcome a delegation from British mdustp' should command the attention of the leaders of manufacturing and other firms interested in Britain. This i meeting, therefore, resolves to take immediate action to Institute a representative delegation to proceed to Russia.