The Birmingham age-herald., 1922-05-12
SOVIET REPLY |S HANDED HEAD OF
 ECONOMIC FARLEY
Regarded as ConciIiatory by England and ltaIy-BeI-
 gium and France Are s,,,
 Disappointed x z
Bx Associated Prs.

Genoa, May 11.-Russia's reply to the allied memorandum. which was presented today to Signor schanzer,
 president of the economic confer ence, Is generally regarded as con ciliatory. At least it is considered a basis for further negotiations. It is suggested that all the tangled financial problems be submitted to a mixed committee of experts named by the Genoa conference, provides a means of escape from the present super-heated atmosphere, which ap- pears 10 be unfavorable for the settlement of the myriad questions arising on the Russian situation.
 England regards the reply as moderately eonciiiatory; so also does Italy. The Italian foreign minister has been working day and night to prevent break, which seemed i'm minent through the opposition of France and Belgium 10 the settle ment of the property questions wh.cn Greut Britain and the lesser powers approve.
 French Disappointed.
 France expresses great disappoint- ment at the reply, and Belgium is far rom satisfied M Barthou, head of the French delegation, declared after an examination that the reply did not get anywhere and wus not really an answer at all to the allied proposals. Consequently il will not be certain until after he had conferred with the government in Paris whether the Russian proposals will be accepted by the French as a basis for con tinuation of the discussion.
 In the meantime .he future or the conference is highly uncertain. Some of the delegations believe that 1t will close precipitately, or perhaps it would be truer to say that they hope 1t will. Other delegations predict that it will last six weeks longer and go into the Russian financial tangie in great detail. The latter seem to be in the majority and i'm dications tonight are that the con- ference may be prolonged indefi- nitely
 The Russian and all the other dele- gations are saying many things for home consumption which it is be. 1 lieved they do no. req mean. and 1 underneath there is undoubtedly general desire to reach some agree ment which will make Europe more peaceful. The Russians have ap. pealed strongly to Premier Lloyd l George and the peace-craving popu- latfons of the world In their support of aggression pact and their allusions to disarmament,
 Rejcct Property Proposals.
 On the other hand. they flatly re- fuse to accept the allied proposals der the treatment of nationalized property and reject the proposed mixed arbitration committee to pass upon claims of the foreigners against the soviet government
 In other words, the Russians have sustained the basic principle of com munism and desire to have further ! discussions on the subject of nation alization, stoutly insisting that the bolshevik government may maintain l any social system and any system of i property holding which 1t desires, l and cannot consent to anything which may be interpreted as limita- tion of its sovereignty.
 France Poland. Czecho- -Sloval,ia and 1 some of the smaller states would like l to have the conference adjourned and reconvened later. They will un- doubtedly take advantage of the Russian proposal for the reference of 1 financial problems to a mixed com mittee to suggest this committee re- port to another conference at a later | date. Mir. Lloyd George. how ever is l firmly against adjo nrnment of tho Genoa sitting without some settle ! ment of the Russian problems and will doubtless oppose NJ. Tenes and other leaders who have been work ing earnestly for another confer ! ence.
 M. Benes wanted to have a confer ence called at Prague, but has TO- ceiveu, little encouragement. Mir ! Lloyd George and his supporters have apparently regarded all the ef- /, forts at postponement as part of the ! French plan to delay any settlement of the Russian problem which did not meet with their approval.