HEW TREATY.

Taranaki Daily News, 19 April 1922, Page 5

HEW TREATY.

BUSSIA AND GERMANY. SURPRISE TO ALLIES. ECONOMIC AGREEMENT. DANGER TO EUROPE. By Teletniph.—Press Assn.—Copyright. London, April 17. The Germans have concluded an economic agreement with Russia. It proTides for de jure recognition of the Soviet, restoration of diplomatic relatione and reciprocal favored nation treatment. This has caused a sensation at the conference. A Bolshevik official made a statement that though the Russo-German agreement caused a sensation and would produce the Allied charge that we failed to keep our pledges to confine ourselves to the conference agenda, it should be pointed out that the negotiations far the agreement cet aside the BrestLitovsk Treaty and placed both coun - tries on a basis of complete equality, enabling common co-operative efforts towards the highest economic development of both countries. The Australian Press Genoa correspondent states that the conference is surprised at the announcement of the Russo-German treaty, concluded yesterday. It replaces the Brest-Litovsk Treaty and renounces all war claims by both nationals, condones the claims for private property, provided the Allies similarly renounce them. The treaty cancels claims on account of the Russians' socialisation measure, provided The Soviet does not give a similar indemnity on account of the claims of other States. It accords favored nation treatment. PROBLEM FOR ALLIES. The delgeations, who resumed conversations this evening, will now turn attention to tins new turn of affairs. It puts the Allies in such a position that Russia can say “Germany is willing to renounce her claims, why don’t you?” It purports to be an economic treaty, but is a de jure recognition of the Soviet. Diplomatic relations were established from 6 o’clock this morning, and it ia generally regarded as a prelude to a Russo-German alliance. The document w&a not officiliy communicated to the AlHee, except to Italy. When the delegates met a German official unofficially handed Mr. Lloyd George a

copy. Mr. Lloyd George immediately sent a message to the German delegation, saying: “I take a very grave view of the German action in taking a step behind the back of the conference.” He also expressed astonishment and indignation. The French were considerably perturbed, but the delegations of the Allies decided not to take any action until -morrow. THE BRITISH VIEW’. The British view is one of surprise that action was taken here. Although the possibility of such a treaty had always been foreseen, the idea of the Genoa Conference was to prevent the division of Europe into two camps. Germany now finds herself in a worse position than hitherto. She has proved herself disloyal. There is no defence for her attitude. The treaty was evidently drafted months ago. Perhaps little exception could be taken if it had been signed prior to the coming to Genoa. The Russians were always free to make an agreement for recognition whenever they could, but Germany’s case was different, because she accepted the Cannes agreement for the very purpose of reconstructing Europe. The outlook m grave, although some opinions think it will not cause a break-up of the conference.

HISTORY OF THE TREATY. HOW IT CAME ABOUT. GERMANY’S CLEVER MOVE. Received April 18, 8.25 p.m. London, April 17. The Daily Express Genoa correspondent interviewed Herr Rathenau (head of the German delegation), who said the economic treaty was a necessity. He added: “I want to emphasise that the Rapallo negotiations with the Russians were a continuance of the RussoGerman negotiations at Berlin. We did not come to a definite conclusion at Berlin, because Germany felt Genoa might produce something tangible. “Germany saw herself isolated the first moment of the conference, and ■was alarmed when she saw the Allies and Russia in secret conclave at Mr. Lloyd George’s villa. Germany thought that if the Allies and Russia combined, paragraph 116 of the Versailles Treaty would be put into effect. Our only course was to get together with the Russians, which was done.”—Aus.-N.Z. Cable Assn.