TRADE WITH RUSSIA.

Taranaki Daily News, 22 January 1921, Page 12

TRADE WITH RUSSIA.

THE DRAFT AGREEMENT. CABINET DIVIDED. True to his promise Mr. Lloyd George resumed direct negotiations with the Bolshevik delegation now in Britain as soon as it was reported to him that the •Soviets had surrendered practically all the British prisoners they were keeping in their different prisons, says the Daily Telegraph. M. Krassin, after a long interval, has again been seen at Downing Street. It must be said outright that several members of the Cabinet — and especially the Secretary for Foreign Affairs, Earl Curzon —do not see eye to eye with the Prime Minister in this matter. They consider that the Bolsheviks have not carried out the second part'of the Government’s condition for the resumption of the trade negotiations—they have not ceased their propoganda against the British Empire. The position in the East is considered to be of so menacing a nature that nothing ought to be done in the way of peace negotiations before it is perfectly cleared up. To this the answer is given that it is precisely by negotiating with the Soviets that the position in the East can be definitely solved.

All parties are unanimous in thinking thdt the question of relations with Soviet Russia must now be solved once and for all. The scope of the discussions, therefore, goes much further than the clauses of the trade agreement, which is now so well known. Chicherin’s Note, which has at last, through Bolshevik indiscretion, been made known to the general public, positively states that the Soviets will not consider themselves satisfied with a simple trade agreement. They demand that it should immediately be followed up by a regular treaty of peace and general recognition. In fact, M. Krassin has let it be understood that his Government considers that the fact of the signature of a trade agreement constitutes per se political recognition. It must be remarked that M. is doing everything in his power to make Mr. Lloyd George’s task of coming to terms with the Opposition in his own Cabinet as easy as possible. It will be remembered that the clauses in the draft which aroused such vigorous protests in the Press and in business circles were 8 and 9. They run as follows:

“8. The Russian Soviet Government hereby declares that it recognises its liability to pay compAsation to British subjects in respect of goods supplied or services rendered to it or to the former Government of Russia, or to Russian citizens, for which payment has not been made owing to the Russian Revolution. The detailed mode of discharging this liability, together with all other questions with regard to the liability of each of the' parties towards the other party or its nationals, shall be regulated by the'Treaty referred to in the preamble. “The British Government makes a corresponding declaration. x “9. In consideration of the declaration in the preceding article, the British Government hereby declare that they will not take or encourage any steps with a view to attach or take possession of any gold, securities, or commodities (not being articles identifiable as the property of the British or any Allied Government), which may be exported by Russia in payment for imports or as security for such payment, on the ground of any claim against Russian citizens, or against the Russian Soviet Government, or against the former Governments of Russia.” The Phrasing of Clause 8 practically left outside its scope all debts of the old Russian Government, and claims of British subjects for compensation for damages and losses incurred. Now it appears from M. Krassin’s declarations th&t his Government would be ready to acknowledge all debts and claims except those incurred by or put up against other revolutionary and anti-Bolshevik Governments. This is an enormous step forward. The impression, however, is somewhat marred b.v the Bolshevik proposal to pay for all these debts by concessions, mining or otherwise. The worth of such concessions is naturally more than problematical.

THE GOLD QUESTION. But the difficulty connected with Clause 9 remains as yet unsolved. All parties are agreed that if the Bolshevik gold did not exist trade would be quite impossible. On the other hand, the objections, legal and otherwise, put forward against the free disposal of the gold by the Bolsheviks remain until now intact, and a way has yet to be found out of the difficulty. 'This probably explains Air. Bonar Law’s evasive answer in the House yesterday. It remainis to be seen if Mr Lloyd George’s firm desire to come to a peaceful solution will be strong enough to overcome the opposition put up by members of his own Cabinet and by events Hicmsolvifs. Things ,are moving so fast in the East that nobody can foretell how the 'filiation will have shaped itself a two hence. For example, alarming complications may ensue if it is discovered that the Bolsheviks have pro-

ceeded to butcher wholesale the tb.ousands of helpless refugees who have now fallen into their power in the Crimea. In fact, I believe that M. Krassin ha;’ been told that bloodshed in South Russia may block the way to any peaceful understanding. Another consideration: it is known rhat in the ranks of General Wrangel’s array there were at least 100 British volunteers. Many of these mon have now fallen into the hands of the Reds, Although the Government has long ago officially dissociated itself from ali responsibility for their safety, their ill-treatment or execution by' the Reds would create in this country a feeling of indignation hard to control. In order to • understand Mr. Lloyd George’s desire to conclude some arrangement with Aloi-cow, it is useful to have in mind the following considerations. It is safe to say tiiat there is not a single member of the Cabinet, who ran be said sinecrelv to believe in Rnsr.iais bursting corn-fiins. Trade, normal trade. Is obviously impossible. But at the present time the political and economical conditions in Europe are so unsettled -that the greatest care must be exercised in dealing with such inflammable material aa the x ßussian question. Whatever happens, it must never be said that the Government of this country has not done its honest best to promote peaceful intercourse with Russia. If the trade agrooment will bo , found to produce, as It probably will, only negative results, the onus of resnoncibility will then lie on the Bolriieviks.