The New York herald., 1922-05-16
RUSSIA GREAT FORCE
IN EUROPE'S POLITICS
No Longer Isolated or Out
lawed, Says DR.. Benes, the
Czech Premier.

Speciul Gable TO THE NEW York HERALD.
Copyright, 1929, by THE NEW YoRK HERALD.
GENOA. May 15.-"Say what you will.
the Russians were brought informally,
if not formally, here into the European
system and are no longer isolated or
outlawed." said DR.. Edouard Benes, the
Czechoslovak Premier, to-day to The
NEW York HERALD correspondent. "The
Soviets have become a political force
i'm Europe, but not yet an economic force
and they will not be such perhaps for
many years. during which Russia will
20 receiving European manufacturers
capital. but giving almost nothing"
Dr. Benes emphasized one of the chief
consequences. in his opinion, of the
Genoa conference. His idea is that the
ing the Russians and the Western
European. Power face to face. This is
all excellent" he declared. land proba-
bly, will be the basis Of productive work
in the future.
''T'here are two tendencies contending
In Russia. One tendency is for for
eign capitalists exploitation of Rus
sla's most easily exploitable resources.
Want of confidence. will make foreign
ers chary of sinking much money in
such Russian enterprises as will not
be Immediately profitable; and such
money as they do sink will have to be
Paid for dearly by Russia. as the greater
the risk, the greater the charge for
the use of money.
This will be opposed to a persistent
h. ~ .af
ernment to use the foreign money more
for reconstruction work. giving no inn
mediate benefit to foreign Investments
/ mean using IL for railways. and public
services. There will be. however, con-
siderable reconstruction work done
v here such reconstruction incidentally
helps exploitation. such, for example,
as railways. roads and posts. and all
means of transportation and communi-
cation i'm the industrial areas.
"Thsse will be first TO improve.
should think. In the Donetz basin.
petrolferous areas and similar regions;
and the harbors and towns adjacent
to those areas also will improve first.
But the recovery of the rest of Russia
will be slow.
"The Soviet system OF government
gradually will move toward the right.
modifying and evolving along western
lines. but the Soviet system cannot
last permanently, even in modified form.
as its principles are wrong, and its
idea of governmental capitalism. where
by all foreign trade will be In the
fands of governmental organs or OF
cooperatives. which are really govern
mental organs. is unsound
Russia finally. in my opinion will
return In n certain degree TO the old
economic state of things. but the Soviet
period VIII. leave many ineffaceable
traces. especially on the land owner
ship system, which probably will be on
the usufruct plan.
For the economic reconstruction of
Europe. however. Russia Is not the
first subject the conference should have
taken up The most important question
In that connection was German repara-
ton. and then the question OF consoli-
dation of the nov republics OF eastern
Europe. Russia should have come last
on the list.
settlement of the German question
would affect European economies in
six months. but settlement of the Rus
sian question probably win have no ap-
preciabe effect for number of years.
But the reparation question must be
treated not by any conference. but by
the interested Powers directly"