The New York herald., 1922-05-26


ability; they are men with knowledge of
the outside world-however much of it
they communicate to their followers
they certainly know 1t themselves-and
they know perfectly we'll that they are
not going to get credit from the West on
the basis of confiscatlon. and the re-
pudiation of debts.
"They also know that Russia can
never be restored until she gets credit.
and this is the position they took up.
At the beginning of the conference we
had close examination of the problem
in two days conversation. The repre-
sentatives OF France, Belgium. Italy,
my right honorable friend the Secretary
Of State for War (Worthington-Evans)
and myself had frank and very search
ing conversation with these leaders OF
Soviet Russia.
"They said that the revolution was a
break with the pasta break with the
methods of the past. the traditions OF
the past and the obligations of the past
but they said: We quite realize that
| Russia cannot be restored economically
| without the help of system which is
| different to our own and with which we
are at war'-as they put It, the capitalist
system. We also know we cannot get
the help of the capitalist system except
on conditions. With regard to the debts
| for money which had been advanced to
Russia before the revolution we are pre-
pared to acknowledge these debts
What they said was TO ask us now
to pay the whole of that amount, or even
| pay the interest on it, Is to ask lis some
thing that would be quite impossible for
us or anybody else. We should be enter
| ing obligations we could not discharge :;
and until Russia is restored economically
we can pay nc1hing.
THAT 10 quite true. Therefore. they
said-'the obligations we enter into will
depend upon the assistance you give
well, this country has been in the
| habit of dealing in the past with de-
faulting States. Whenever a defaulting
| State comes for further credits 1t has
always been a condition that they
should acknowledge their own debts
but there has always been wiping out
of past interest. postponement of in
terest in the future. and sometimes a
writing down OF the capital amount
Now. they said Before we can tell you
| what moratorium we shall require and
how we can pay. we must first know
what you are prepared to do to put
Russia upon sound economic basis by
| helping her with credit
| Compensation Claims.
There was the basis. therefore. for a
! business discussion in which there was
no cardinal principle involved. The first
challenge of principle came on the claim
put forward by the Soviet Government
for compensation for the ruin brought
by the war They said. Most of the
damage TO property was done by you
The bill put forward by Russia amount
ed TO the small sum of 5000, 100000,
which. they said. was lost in various
operations. OF course. we cannot ac-
knowledge that, in the circumstances.
We are prepared to take into account
! the fact that Russia was damaged by
civil war, and the fact of the great
destruction the civil war brought about
in her territory. because that is a mat
ter the creditor is entitled to take into
account when considering what pay
ment he can expect from a debtor.
I'VE are willing, In fact, in view OF
| the serious economic condition Of Rus
sia, to write down the claims for money
advanced by Governments to Russia
during the war. That was agreed to by
France, Belgium. Italy and ourselves.
! But no claim could be put up as against
the money advanced by individuals to
Russia. and no account could be taken
that has been drawn from Russia. AL
though that was not the most satlsfac-
| tory way of dealing with II, IL was
agreed to as good enough to proceed
upon.
when you come to the question OF
debts. there is the insuperable question
of principle; but when you come to the
question OF property. the difficulty is a
much more serious one"
Mr.. Lloyd George drew attention TO
the Cannes resolution, In which. he said,
the position OF the European Powers
was clearly stated. There, he said. the
case of Europe against the Soviet Gov
ernment was never concealed, even by
the Russians themselves, during the
whole time-in fact. they accepted them.
He said the Powers were In complete
agreement
"Our claim I'm respect to property was
framed in the first instance by three OF
the ablest jurists of Europe. We ac-
cepted the clause and came before the
political commission. The delegates of
France accepted the draft with the ad-
dtion OF one amendment: and il
amounts to this:
There was no difference Of opinion
between France and ourselves on the
property clause. But Belgium, too, had
different views, and although Belgian
jurist assisted IN drafting the clause,
Belgium as represented refused TO accept
IL. The Belgian position was that prop
erty must be restored, lf It was ma
terially possible.
soviet No Democracy.
There IL no doubt that there has
been a great struggle in Russia between
the principal statesmen OF the Soviet
system and extreme theorists. For some
time more moderate ana practical men
were on top. Then came the struggle
of the first of May. when there we're
great demonstrations in Russia, great
demands that there should be no sur
render. and It was undoubtedly reflected
In the action Of the Soviet delegation.
ut was great mistake to imagine
that autocratic governments were alto
gether free OF the influence OF public
opinion, and there Is only one public
opinion In Russia. IT is not the public
opinion OF the masses of the people.
/ Ninety-nve per cent. OF tho people are
! quite Indifferent to this system and
| hostile. The only thing that matters
thcrc Ia thc onfufon Of uorknou Ia,