The Washington herald., 1922-05-18
False Hopes Held Out to
Soviet Presage Ruin,
1t Is Asserted.
DEMANDS FOR LOAN
DEEMED ABSURD
U. S. Said to Favor Allied
Inquiry Into Reds Eco
nomic Condition.

IL is the unqualified conviction
Of officials here that continuation
of the Genoa conference, either NJ
Genoa or The Hague. constitutes
a menace on Russia
The discussions at Genoa Il was
stated in a high oficiaI quarter yes
terday. have been conducted along
lines calculated to delude the world
as to the real status Of affairs in
Russia, and to build up false hopes
among the Soviet leaders. as to
what they may expect at the hands
of the allies.
All the negotiations, both prior
to the convention Of the conferences
and during its deliberations have
been of such a nature as 20 feature
the question OF recognition of the
Soviet government and TO facilitate
the disposition on the part OF the
Russian delegation to make de-
mands which on their very face
were 'absurdly impossible"
Loan Demand sAbsurd--
A6lNe lFon lne question oil de
| jure recognition of the Soviet re-
gime, the most conspicuous exam
pie Of these demands Is that con-
cerning a huge loan, IL was stated.
Nothing could be more absurd. on
cials here believe. than for Russia
20 expect that any responsible gov
ernment seriously would consider
such a proposal. Yet their reply
to the allied proposals clearly indi-
Gates either that they believe such
a loan possible. or that they be-
lieve they may strengthen their pO-
sition by pretending they think
they are justified in demand ng IL
Even IL formal recogniu were
granted Immediately, officials de-
clare. there would be no possi bflity
OF a such a loan being fioated. In
view OF these facts, the Russian
delegation is regarded here as hav-
ling raised up impossible barriers to
any further negotiations along that
tline.
Must Prove Faith.
No nation which has the ability
to do anything for Russia in a
financial way is going TO do il. as
long as Russia declines to meet her
ordinary International obligations.
No individual nor group OF indi-
viduals is going TO make loans in
Russia unless there are ample
guarantees that the money will not
be thrown away.
This government 10 said TO be-
lieve that:
!. The Genoa conference should
| adjourn sine die.
.. That there should be launched
/ kxT Aa
and associated powers into the eco
nomic conditions in Russia. ...
3. That following the reaching Of
complete understanding Of eco
nomic conditions in Russia. polit-
ical questions could be taken up.
United states Favors Inquiry.
The United States government. il
is said. would support and partici-
pate in an international inquiry by
experts into Russian economic con-
ditions. provided political matters
were left out Of cosideration en-
tirely until the inquiry was com
pleted-
No explanation was forthcoming
yesterday of the apparent confusion
and Misunderstanding which was
occasioned in Genoa by the Ameri-
can reply to the invitation 20 par
ticipate in the conference to he
held at The Hague. There were.
as a matter Of fact. two invitations
and two replies by the American
government, IL developed. The first
invitation was communicated by the
French and suggested that the
United States name a representa-
tive TO an international commission
TO investigate economic conditions
in Russia. II is understood that
France was acting on behalf Of all
the powers represented at Genoa
in forwarding this invitation.
Two Messages Confused.
Replying to the French cable
gram. the United States government
expressed considerable sympathy
with the proposition, though IL is
understood an explicit acceptance
was withheld pending further in
formation.
1t is presumed that something
leaked out at Genoa as 20 the ma
ture OF the American reply, and
this led to reports-cabled to Lon
don and elsewhere-thatt the United
states had accepted the Invitation.
Just upon the heels Of the French
invitation, however, came the COM
munication from the Genoa confer
ence, asking the United States 90
participate In the conference to be
held at The Hague. As the atti-
tude Of the administration toward
the Genoa conference was perfectly
clear. and, as Secretary Hughes
looked upon the proposed Hague
conference as merely a continuation
of that at Genoa, this government
lost no time in transmitting a re-
fusal TO participate.