The New York herald., 1922-07-08
Soviet Ideas of Restitution
Shock Delegates at the
Hague Conference.
OWNERS ARE FROZEN OUT
KrasSine Saves Situation, Sug-
gesting Restitution Talk
Be Deferred.

THE HAGUE, July ASSOCIATED
Press) The Hague conference came
very near rupture to-day. the issue
on which the conference threatened to
split being the treatment OF confis-
Gated property in Russia.
What Russia proposed to do in the
way Of restitution. as explained Of
flcially by Maxim Litvinoff, the Rus
sian spokesman. fell like cold shower
on the expectant delegates. Sir Philip
Lloyd Greame of the British delega-
ton arose and declared it was per-
fectly absurd to continue the discus
sions unless more satisfactory assur-
ances were Forthcoming.
Only M. Krassine - "Krassine the
conciliator" as he is beginning to be
called-saved the day by suggesting
mildly that controversial matters be
left aside for the moment and a real
effort be made to find a common
ground based on mutual advantage.
Concessions Regardless of Rights.
The difficulty started at the afternoon
session OF the conference. when NJ. Lit
vinoff read a long list Of oil and other
concessions which Russia was ready to
give to foreigners. M. Gather Of Bel
gium suggested 1t would be mice" II NJ.
Litvinoff would explain which of the
properties listed were under foreign
ownership previous to their confiSca-
ton and what foreign properties were
excluded from the list.
NJ Litvinoff replied that he could not
say whether the properties belonged
previously to foreigners or Russians. 1t
was difficult for Russia to identify
foreign enterprises. All that could be
done was to publish the list and let
foreign owners identify their property
| IL they could
DO you really mean," Sir Philip
Lloyd-Greame asked. that. having ma
tionalized these properties and admin
istered them. you do not know whether
the owners are foreigners or Russans?'
Exactly" replied NJ Litvinoff.
Sir Philip then asked: Can you not
give an approximate estimate OF the
proportion of properties under foreign
ownership"
NJ. Litvinoff replied: MY anwer
to that is that first we must agree as
|
Former Owners Frozen Out.
I NJ. Gathers said: I'VE understand
| then, there Is no question OF restitution
to the actual proprietor and that Rus
| sia will grant concessions to any for.
eign capitalist who is ready to invest
money and not necessarily to a former
] owner"
To this the Russian spokesman made
the answer: I'VE do not go back or
what we said at Genoa. namely thai
| the first option on concessions woulC
be offered to former owners"
! A long, exciting discussion followed
| with frequent murmurs of astonishmeni
or disapproval. The Dutch representa-.
tives wanted to know whether in case
a former owner had been ruined by the
| revolution and had no capital to take
over his property 1t would be given tc
another syndicate offering better terms
] NJ. Litvinoff explained: 'If he lacks
capital we cannot recommend him as 9
candidate for the concession. We want
to give these properties to people who
will develop them"
Britain's Ultimatum.
Sir Philip Lloyd-Greame interposed
speaking slowly and cuttingly. Hi.
words were
mo credits, public or private. In an,
country of the world, will be forthcom
ing unless satisfactory conditions ar,
| obtained regarding property. 1t Is alb
solutely necessary we should know what
property will be restored what you In.
tend TO do when property Is not re.
stored and what will be the conditions
of restitution. Until this is known II
is perfectly futile and absurd to con.
tinue
1T does not rest with Government.
to settle conditions Of credit. They ar,
settled by the people having money to
invest. IL the non-Russian experts are
unable to say how much money will b,
available II Is because the whole posi-
tlon on credits depends entirely on the
reasonableness of the Russian attitud,
on restitution"
Partly with the idea of saving th,
conference from collapse, and partly 4
contribute light on the property issue
Krasslne. acting in the role OF peace
maker. suggested that each side omi
controversial points from the discussion
| as far as possible. Thus the European.
would cease talking about absolute resti
tuition and the Russians would ceas,
demanding credits.
This was agreed to with the under.
standing that classified industries woulc
be taken up and an effort made TO es.
tablish conditions for restoration to foe.
ner owners which would be mutual,
satisfactory. Some 600 concessions, di.
vided into twenty branches. were men.
toned. including about thirty oil con.
cessions. some for production and other.
for refining.
------------------------------