The Daily News. TUESDAY, JANUARY 27, 1920. TRADE WITH RUSSIA.

Taranaki Daily News, 27 January 1920, Page 4

The Daily News. TUESDAY, JANUARY 27, 1920. TRADE WITH RUSSIA.

The latest phase of the Russian problem is one that, lias to be carefully considered, inasmuch as there appears to be no guarantee that the Bolshevik authorities will fall in with the proposed reciprocal arrangements. According to recent cables, the Allied Supreme Council has decided to completely raise the blockade against Russia, and, 1 with a view to remedying the hardships of the population of the interior of that country, to permit the exchange of goods, on the basis of reciprocity between the Russians, the Allies, and nt,jtrals, and is consequently giving facilities to Eussian co-operative organisations, which are in direct touch with the Russian peasantry, to import clothing, medicine, agricultural machinery, and other necessaries in exchange for grain and flax. The London Daily Herald states officially that the Soviets are prepared to place forty million sterling in foreign banks as a basis of trade, adding that a million tons of wheat (about thirty-six million bushels) are ready for immediate export, and that valuable trade concessions will also be granted. It is probable that the remarkable optimism of the British Premier concerning the solution of the Russian problem is largely based on the resumption of trade being the first step towards peace. Such an ending to the present struggle in this vast country seems too simple to be effective, but if the Soviets favor the proposal there may be' some hope of its adoption, though it is advisable to await developments before arriving at any belief in the remedy. At. the same time the scheme affords some indications pointing to the possibilities of real peace. This view i is taken by Mr. J. L. Garvin (edi'

tor of the Observer), whose opinion carries weight. He believes the Bolsheviks are ready to attempt industrial reconstruction, and he considers the resumption of trade will afford opportunities for inquiry and an authoritative report. The British Government, it is stated, will back the scheme for pushing Russian trade to the extent of over forty million sterling, mainly by way of insurance against trade risks, and it is obvious that without some such subsidy, under present circumstances, trade would be very limited. The scheme will, it is considered, be of benefit to the whole of Russia, and will assist in reconstructing British trade, Allied co-operation being dispensed with. Mr. G. H. Roberts (Food Controller), while abhorring trade with the Bolsheviks, recognises that the ever-up-ward tendency of the cost of living is due to decreases in the sources of supply, and that if it is possible, with honor, to resume trade with Russia, it would open up a vast new avenue of wealth and employment. If Britain does not take this course, it is fairly certain that Germany and America will do so! Britain badly needs wheat, and can supply Russia with goods and raw material in exchange. The scheme certainly has the merit of being a constructive policy, which has the possibility of counteracting the Bolshevik creed of violence and destruction. The question is whether the Bolshevik leaders will be disposed to abandon their terrible campaign and settle down to a peace that would deprive them of power. It hardly seems likely, but, as the Allies have given up intervention, their only hope is peaceful penetration. It is stated that the Russian harvest is the best for thirty years, and should reduce the cost of living in Europe. The advent of Russian wheat on the market would certainly be a great boon, especially as the shortage in Australia is so large. Although it is sound policy for the Dominion to grow its own wheat, it has to be recognised that dairying is far more profitable, and the temptation to obtain the largest possible returns from the land will always be very strong. The experiment of resuming trade with Russia is well worth trying, even though the risks are considerable. It is Britain's opportunity for creating new markets, and if peace is secured in Russia the worst of the war troubles will be ended. It is a consummation profoundly to be desired.