The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1921-04-18
mo RESUMPTION
RELATIONS With
SOVIET RUSSIA
Secretary Hughes Answers
Query Propounded by
Samuel Gompers..
RESTRICTIONS ON TRADE
WE'RE REMOVED IN 1920
Trade UnimpOrtant Due to Rus
sia's Inability to Pay
For Imports.
tey The Associated Press.

WASHINGTON, April 1T.-Secre-
, tarv Hughes, writing to Samuel Com
pers. president Of the American FEEDER
alton of Labor, who asked for a state
ment of the facts" regarding Russia,
indicat , definitely that there is no
prospect of the rsumption of relations
with the United States while the SOW
let political and economic system re-
mains.
The letter of the secretary of state
makes direct reply TO various state
ments characterized as propaganda,
which contend that resumption of re-
lations, trade or political, with the
soviets would open a reat current of
trade of advantage to the United
States and that large shipments of
Russian gold have already been made
to other countries in payment for
goods
Soviet Russia, Secretary Hughes
declares. is "a gigantic economic vac
uum." and. he adds. that mo evidence
exists that the unfortunate situation
Is likely to he alleviated so long as the
present political and economic system
continues.
Taking up specifically the charge
that the scarcity of goods in Russia
is due to the blockade which was re-
moved July 8, 1920, and the state
ment that the demand for manufac-
tured goods in Russia is so great and
the purchasing power of the soviets
so vast that 1t is almost impossible to
determine the capacity of the Russian
market for imports, Secretary Hughes
wrote:
"Thuogh there is almost no limit to
the amount and variety of commodi-
ties urgently needed by Russia, the
purchasing power of that country is
now at a minimum, and the demand
must consequently remain unsatisfied.
The attitude and action of
the present authorities of Russia have
tended to undermine it's political and
economic relations with other Coun-
tries The Russian people are unable
to obtain credit which otherwise be
based on the vast potential wealth of
Russia. and are compelled to be de-
prived of commodities Immediately
necessary for consumption, raw ma
terials and permanent productive
equipments. It should not
be overlooked that there has been a
steady degeneration even in those in
dustries In soviet Russia that were
not dependent upon imports of either
raw material or partly finished pro-
ducts nor in which there has been
any shortage of labor. There
can be no relations of the failure of
all these industries to blockades or
civil war. for most of them require
no imports, and the men mobiIized
since the soviet revolution were far
less in number than before the event
Restrictions on direct trade with
Russia were removed by the United
States on July s, 1920. The conclusion
of treaties of peace with the Baltic
states enabled Russia freely to enter
upon trade with Europe and the Uni
ted States. Both American and Euro
pean goods have been sold to Russia
but the volume of trade has been un-
important, due to the inability of
Russia to pay for imports.
TT is true that agents purporting to
be representatives Of the so-called
bolshevik commissariat of foreign
trade have placed immense orders for
the purchase of goods in the United
States and Europe and Asia 1t is es-
timated that perhaps six and one-half
billion dollars worth of orders have
been booked, but shipments as d re-
suit of these orders have been made
only in small volume because the SOW
let agents were unable either to paw
cash or to obtain credit so as to in
sure the delivery of the goods or
dered"