The Washington herald., 1922-05-03
DISASTER FEARED
Lloyd George e Amazed
And Angered by New
Crisis at Genoa.
RUSSIANS READY
TO REJECT PLANS
Belgians Withdraw Offer
Of Aid to ConsOrtium
Loan Scheme.

GENOA. May Am unexpected
split Of a serious nature appeared
in the allied Genoa front lust he
fore the new memorandum contain
ing the plan for Russian restora-
tion was handed 10 the Soviet dele
cation.
France and Belgium refused 90
sign the proposals and Belgium
withdrew the offers OF aid she made
in the consortiUm plan contained
in the preamble OF the note.
This split, the mast serious that
/ has arisen so far. will prove eN-
tremely disastrous. Il is felt Pre-
mier Lloyd George IS amazed and
IanEered by this development which
came with dramatic suddenness just
when every one through the allies
had at last been brought together.
French Await Instructions.
Until a few hours ago fl was ex-
Pected that every allied nation
would sign the Russian memoran-
dunn. The French FIRST explained
that they do not feel free 10 sign
the note formally uutil insiruc-
ltions have been received from
Paris. il was not until Belgium
refused TO sign and despatched a
mote to President Fscta withdraw
ing all offers they had made in the
preamble for joining in the Russia
lconsortium. that the failure of
France to sign appeared signih-
tcant.
Now the British and italians fear
thai the two other powers are
working in complete understand
ing with each other. Although Il
is too early TO predict the effect
of this latest development. il Is al
most certain TO make a settlement
Of the Russian problem impossihle
for the present. especially since the
Soyiets themselves show no dispo-
tion to accept such terms as the
allies have thus far proposed. They
would hardly be expected TO Sc
riously consider the new memo
randum in view OF dhe fart that
two Of the most important nations
in the allied group refused 10 sign
liz.
Lloyd George Plan FaIIs.
Belgium had promised, in the
ipresence Of the note, TO subscribe
Ga 900. coo sterling toward the
Russian consortium.
Whether France also VIII with
draw her offers remains to be seen
Making a desperate effort 10 get
united front. Lloyd George. Just
before the memorandum was COM
pleted, finally but reluctantly ac-
/ cepted minor amendment pro-
posed by the French. explaining
that il would increase the chances
Of rejection by the Russians, hut
that failure to agree would Jeop-
ardize the pacihcation OF Eastern
Europe and result in a dangerous
lreErouping of the poweN.
An hone OF working out cure
! for Russia's Ills at Genoa appears
to be fading. Having wranEled
| among themselves over plan
almost since the day the conference
opened. the allies finally reached
! an agreement-which the hussl@hs
refuse to consider.
| Even before the allies trans
mitted their memorandum the Rus
SLAMS, through Rskowsky. their
press spokesman, announced fatty
il would be unacceptable because
il "infringes on Russias soNer-
eighty" The Soviets, he said
might agree to some Of the minor
| points OF the allied plan. but the
mixed tribunal proposed 10 decide
on payment OF debts and restora-
tion Of confiscated property denies
| Russia her right to say what prop
erty can be appropriated for ma
tional needs. and is utterly un-
acceptable.
Allied Lenders Depressed
The allied memorandum, RaNow-
sky declared. is an effort to restore
Russia TO the old regime OF in
dividual capitalism.
We did not come here TO night
capitalism, and we won't permit
others TO fight our system, the
| Soviet delegate said. ...
This apparently irreconcilsblc at
titude OF the Soviets. when COM
municated to the allied delegates.
1 brought expressions OF despair.
| Russia's refusal to accept the allied
plan. they declared. means that Il
] will be years before the problem
can be settled.
lloyd George and the British
delegates were particularly de-
pressed over the prospective rejec-
tion of the allied plan by the
Soviets. This-with the departure
Of Louis Barthou, head OF the
French delegation. for Paris-gave
a pessimistic turn to the days de-
velopments.
Kills Nonaggresston Fact
Just before he left Barthou con-
ferred with Lloyd George. who de-
clared TO the French delegate that
IL Russia refuses TO accept the
allied plan il will be Impossible
to take up the nonaggression pact
| at Genoa.
This and the Russian settlement
were the two big accomplishments
Lloyd George sought at Genoa
Tchitcherin seeking to offset
the unfavorable impression which
his rejection of the allied recon
struction plan is bound to produce.
is now proclaiming Russia's eacer-
ness TO assist in removing The
causes Of war recently pointed out
by Lloyd George.
In a note 20 Foreign MinistE-
Schanzer. of Italy. Tchitcherin
clared that the peace OF the
Is threatened by numero;
dairy encroachments. most OF 'Hcni
against Russia. These ought tn be
1