Paragould soliphone., 1922-06-07
RUSSIAN RED
 ENVOY NOT 10
 BE RECOGNIZED
Credentials of Bakhneteff Will Be Withdrawn On June 2O-Was Appointed By Kcrensky.

Washington, June 5.-Boras Bakh- meteff, whose status as Russian am bassador here has been subject of controversy since the Ke1cnsky gov ernment, which appointed him, col lapsed five years ago, has been noti- fled by the State Department that his credentials no longer will be rec ognized by the United States after June 30.
 The department acted after MT Bakhmeteff. himself taking notice oi Senate criticism of his continued presence here, had offered to retire should the Washington governmenl desire it. The work of liquidatine property claims growing out Of the war, the ambassador said, had been his chief function in recent months and now was about completed.
 In making public the correspond ence last night, the department an nounced also that termination of MT Bakhmeteff's duties as ambassador .'had no bearing whatsoever upon the question of tEe recognition of the soviet regime in Russia, which is an entirely separate matter.
 Tells of Disposal of Funds.
 At the same time department off cials made public an exchange ot letters between Secretary Hughes and Secretary Mellon of the Treas ury Department in which cognizance is taken of the charges of misuse of Russian embassy funds, produced in the Senate several weeks ago by Senator Boroh, Republican, Idaho. A detailed statement of the embas- sy's expenditures is given by MT. Mellon, whose letter declared that the $1S7,000,000 advanceG by the United States was "used solely for the purchase of obligations of the Russian government in accordance with the Liberty loan acts.
 Of the $l87,0G0,0o0 total, the treasury secretary said, $125,02o,- 900 was transferred by the ambas- sador to tbo account of the Russian finance ministry, leaving SCHOOL 900 flor expenditure in this coun- try.
 ..At the time of the fall of the Kerensky government in November, 1917," the latter added, the em- bassy had $5G,000,000 deposited in this country of which $10, 100000 was said to be the balance remain ing from this governments loans to Russia the remainder representing money derived from British and oth- er sources.
 The $56, 900, MT. Mellon add ei, together with other sums added through liquidation proceedings, all was spent under the supervision of state and treasury officials. The amount of liquidation effected was given at approximately S102, 900, negotiations regarding which were said to have been virtually completed. Upcn MT. Bakhmeteff's s retirement, these negotiations arc to be carried forward by Serge Ughet, financial attache of the em- bassy, who is to continue to enjoy diplomatic status
 The correspondence between MT. Bakhmeteff and Secretary HugHes as made public last right, is dated late in Ariil, after Senator Borah had challenged tLe amoassador'a $ status and had made an unsuccessful attempt T ha'l him before Sen ate committee. It was not until early in alav, howcve" tLat Senate discussian C: iLr subject mad reach ed its climi;N in list e interroGa tories Dr1poundcG by Mr. Borah on the SenaSe f;unr. but rever official ly taken note of by either the State Depaitn Cni CT the emba: sy.