RUSSIA’S REPLY.

Taranaki Daily News, 24 April 1922, Page 5

RUSSIA’S REPLY.

NEED FOR HELP. A HOPEFUL BASIS. THE ALLIES’ TERMS, By Telegraph.—Press Asti.—Copyright. Received April 22, 5.5 p.m.

Genoa. April 21. The Allies are prepared to consider not only the postponement of interest payments upon the financial claims, but also the remission of some parts of the arrears of interest or postponed interest. It must, however, be definitely agreed that there can be no allowance to the Soviet Government against other debts or financial obligations due to foreign nationals with regard to the return of property and compensation for damage or loss. The Russians, in reply, are still of opinion that the present economic position of Russia should fully justify a complete release of Russia from all her obligations mentioned in the Allied proposals, by reason of her counter-claims. However, the Russian delegation was prepared to make a further step towards the solution and adjustment of differences by accepting the points laid down, provided adequate help be given to her to recover from her present economic state. If this was done, she would be willing to restore any property nationalised or withheld, or, where this is impossible, to otherwise satisfy their claims. Foreign financial help was absolutely essential for economic reconstruction. Without it, the Russian delegation were unable to see their way to saddle their country with debts which could not be discharged.

Further, the Russian Government could not admit liability for its predecessors’ debts until the Soviet had been formally recognised by the Powers concerned.

The reply was signed by M. Tchit cherin.

When the Russian reply was received, the first sub-committee informally considered the matter. It was generally accepted as a hopeful basis whereon a discussion could be based. A committee of experts was immediately appointed to investigate the details, consisting of one expert from each of the five powers, one from neutrals, and one representing the Little Entente.

It may be regarded as certain that the main controversy will centre on compensation to nationals for property confiscated or destroyed, because it raises the question of interference with internal policy. Nationalisation was the slogan of the revolutionary policy, and the Soviet cannot be expected to depart there-from.—Aus.-N.Z- Cable Assn. RUSSIANS PROVE THEIR METTLE. A MATCH FOR OPPONENTS. Received April 22, 5.5 p.m. Genoa, April 21. The Russians quoted the abolition of slavery in America without compensation, also America going -dry without compensation to the liquor sellers. The Russians proved themselves quickwitted, and quite a match for their opponents. It is believed that the situation, as laid down in the Russian reply, presents no insuperable obstacles to a settlement. The committee of experts has already begun its task.

SUCCESS PROSPECTS BRIGHTER. Genoa, April 21. As Mr. Lloyd George predicted yesterday, the Russian reply enables the subcommittee of the first commission to begin its labors. The Germane also officially confirmed the Prime Minister’s statement, so that the outlook for a successful outcome has materially brightened.

The points which the Allied Governments laid down in the informal conversation.? whereon the Russians felt impelled to refer to Moscow were, firstly, that the Allied Governments cannot admit any liability regarding claims advanced by the Soviet Government; secondly. in - view of the serious economic conditions in Russia, such creditor Governments are prepared to write down war debts owing by Russia by a pereentag*which shall be determined later.

GERMANY’S PLAUSIBLE NOTE. Genoa, April 21. Germany’s Note accepting expulsion from the First Commission, which deals with Russia, states that she desires to e-it on the commissions dealing with other affairs. The Germans said they had recognised the Soviets long ago. The treaty had been prepared for weeks. The Germans were ready to continue to help the succees of the conference and re-establish relations between the East end West. The Germans were pressed to sign the agreement with Russia, as their interest? had been neglected by London, and if they had not accepted, the Russians might have asked for burdening reparations.