The Washington herald., 1920-07-08
BAN TAKEN OFF
RUSSIAN TRADE
BYUNCLE SAM
CONTINUED FROM PAGE ONE.


be carried on with the Russian CO.
operatives.
IL does not mean that the door
VIII be wide open. for the declara-
uon OF the State Department that
this government will assume none
OF the risks incident to trade with
Russia will be a handicap to many
American firms. In addition 1T is
not the intention Of the department
10 issue any passports good for
travel within the boundaries of
Russia, and this undoubtedly will
cause many of the negotiations and
the actual delivery of the materials
sent in to be carried on in border
States such as Esthonia and Lithu-
ania.
Reserve Dennition of Rights.
Another hold which the govern
ment maintains upon the situation
lies in the restrictions placed upon
the shipment of materials suscepti-
Bile to immediate use for war pur-
poses.
The definition of such materials, 1t
was said, is entirely in the hands of
the State Department. Officials re-
fused yesterday to speculate upon
the character of articles that would
be included in such a list, but said
that each matter would be taken
up as applications for export IL
censes were filed. 1t was intimated
that rolling stock and locomotives
might come under the ban, and that
the department probably would fol-
low the course taken during the
war. when specific lists of contra
-fal kro
ing generally all articles designed
enemy"
The restrictions which have
heretofore stood in the way of trade
and communication with Soviet
Russia were removed by the De-
partment of State" said the text OF
the official announcement.
Expect Little Benefit.
1t has never been the belief of
officials of this government that the
resumption of trade with Russia
will be of tremendous advantage to
industrial elements in The United
States. Thorough investigation of
the situation in Russia has con-
WINGED the government that the re-
sources of Russia are at lowest
eb, that such supplies and ma
terials as might be of use to the
outside world are far removed from
any ports. and that crippled trans
portation in Russia would make the
cost of removal prohibitive.
1t has been realized here, how
ever, that the action of the allies
in refusing to trade with Russia has
been a powerful weapon in the
hands of the Soviet propagandists.
They have spread the idea that
Russia was being made the martyr
of the capitalistic greed of the out
side world and that these influences
were bottling up Russia in order to
prevent the huge stores of raw
materials that the Russians had
from depressing the present high
prices.
VIII Act ms Remedy.
The effect Of this propaganda
government oficials realized, has
been potent. Many manufacturers
in the United, States have come to
believe that ftbe remedy for the
prices that they are forced to pay
lies in Russia as we'll as the open
ing up of a market for their manu-
factured products. Administration
of open trading will destroy this
impression and place the economic
possibilities of Russia in their true
light.
What the position of the allied
governments toward Russia will be
as the result of the action taken by
the United States officials here re-
fused to say. 1t was acknowledged
that events in both England and
France has been leading up to a
move of a similar sort. England,
or rather English interests. already
have made a bid and obtained a
certain measure of Russian trade
through negotiations carried on in
Esthonia and Lithuania. This, 1t Is
understood, brought about consider
able pressure on the State Depart
ment from American interests that
feared the loss of their share of
the commercial advantages thought
to exist in Russia.