The New York herald., 1922-04-18

Action of Rathenau and
Tchitcherin Astounds
Delegates and Grave
Situation Arises.
PROTEST. IS'TO BE MADE
Regarded as the First Step
in Russo-German
Alliance.
'TREACHERY TO EUROPE
Germans, Highly Elated, Re-
garded Tt as Their Second
Strategic Victory.
'TREACHERY TO EUROPE
ny RAYMOND GRAM SWING.

ny RAYMOND GRAM SWING.
Specio, Cable TO THE New YORK HERALD.
COPYRIGHT, Ige2. oy THE New YoRK HraAIp.
GENOA, April 1.-THE first step in
Russo-German alliance" Is the de-
scription given by British delegates
to the trade treaty which was signed
in draft yesterday by DR.. Walter
Rathenau and Georgevitch Tchitche-
rim, Foreign Ministers respectively
Of Germany and Soviet Russia. 1t is
to be signed officially tomorrow.
Nominally the treaty is of an eco.
nomic character, but in allied, and
especially in French, circles it 10
looked upon as highly political and
capable of leading to the withdrawal
of France from the Genoa conference.
The French delegates are reported TO
be indignant, and Louis Barthou.
their chief, said tonight that he
would not sit beside the Soviet dele.
cation in any but plenary sessions OF
the conference. The French are hold.
ing meeting this evening, and viii
ask their Government for instruc-
tions. 1t is held that Germany has
recognized the Bolshevist Govern
ment de jure and that the treaty pro.
vides for the first cancellation of war
debts.
The British delegates take an ex.
ceedingly grave view of the situation.
and it was announced tonight that
the treaty was regarded as disbon.
orable action and treachery to Eu.
rope. They said it was not even
clear that the treaty was not in vio-
iation of that Of Versailles, though
no specific violation was pointed out.
1t was fatty denied that Prime Minis.
ter Lloyd George had known of the
treaty or had approved it Another
meeting OF the Supreme Council will
be held tomorrow, and probably will
result in sending protest to the
Germans.
The meeting of the Supreme Coun.
ii to-day, summoned before the treaty
had become known, however. was de.
voted to a discussion OF the agree
ments. The Little Entente represen.
tatives this evening are examining
its provisions.
The British say that even should
the French withdraw from the con.
ference there is no need for its col.
lapse, as still there will be work to be
done. They say the treaty would
strengthen Russia's position in an.
swering the Allies terms on the
question of debts and property.
Attacks Allied Position.
One clause specifies that Germany
will renounce her claims of indemnifi-
cation for private damages by confis-
cation under the Soviet policy OF
socialization If other nations make
similar renunciation. This is directly
at odds with the Allies stand, which
has been that recompense by Russia
must be made. Russia now viii be in
tie position Of pleading with the Allies
to follow the lead of Germany.
The British, however, prefer to be-
lieve that the Russian answer to the
allied experts report which the Soviet
delegates last week asked time TO con-
slider will be favorable when 1t is re-
ceived tomorrow, and that no threat
or advantage will be issued or taken
BY virtue Of the new position which
the Russians treaty creates.
Germans E1ated Mt Success.
Whatever special trade rights the
Allies exact Of Russia will be assured
70 Germany by the terms of the
treaty. The Germans are elated at
their success and figure II as their
second strategic victory in the confer
ence. more important than their in
PRODUCTION Of reparations into the con-
ference discussion under the assumed
name Of balance Of payments Ii
gives them every trade advantage
which Russia accords TO the private
individuals or other nations. and
finally closes tho door TO Russias ever
claiming reparation under the Yer
sailles treaty.
The Russians take the pains 20 point
cut that signing tho treaty was the
logical outcome of long negotiations
and not in any way an indication thc
Germany and Russia are working =