The Richmond palladium and sun-telegram., 1922-04-22
FRANCE SEES
LOOPHOLE IN
GERMAN NOTE
Contends Germany May In
sist Upon Discussing Rus
sian Questions Other Than
Those Settled in Treaty.
COMMUNISTS SHOCKED
~ Assoclatea Press


GENOA, April 22.-The French dele
cation to the economic conference has
submitted protest against the Ger
man reply to the allied note in which
the Germans stated they would refrain
from discussing Russian questions set
tied in the Russo-German treaty. The
French contend that the Germans w
der their reply may insist upon dis
cussing other Russian questions.
George Chitcherin, the Russian so
Wet foreign minister, gave the Italian
socialists and communists a shock 10
day by meeting King Victor Emman
uel on the kings visit here and ac
cepting his majesty's invitation to a
luncheon on board the Italian dread,
naught Count de Cavour.
Work on Plan
Actual work on plan for the ra.
construction of Russia was started to-
day by experts representing the sovio,
government, Great Britain. France.
Italy, Japan, Belgium, Czecho- Slovakia
and Holland
! Russian problem has been cooled b.
E. NJ Chicherin's note accepting in
| the main the allied formula stating the
terms on which the great powess are
| willing to resume business relations
with Russia.
| Sir Edward Grigg, private secretary
| to the British prime minister and
! others prominent in the conference
have made it clear that no proposition
has been put forward for government
loans to Russia, nor government guar
antees of loans. The idea of the fin
ancial and economic experts is that
when Russia reaches a position where
she can give investors assurances that
there will be legal basis for undertak-
ings in Russia and that foreigners viii
have protection under proper courts.
abundant credits will be forthcoming
for the development of Russian re
sources.
/ Point of Difference
The single important point of diff
ference between the Russians and the
allied representative is the unwilling
ness of the former to restore the free
hold title of foreigners property which
has been nationalized or Tequisitioned
by Russia. although they are willing
: to restore 1t to the former owners foI
their use.
/, In the case of factories this would
doubtless be on a concession basis
, Factories which have hitherfore stood
idle because the formers owners re
, that their title would be restored may
that tehir title would be restored NAV
; be reopened if the Soviet concessions
: are given a real basis for the Genoa
) negotiations.
/ Decline Concessions.
The International Harvester com
pany and many other large corpora
tions having factories or mines in
Russia heve declined to consider TAX
ing concessions to run the propertie@
they vigorously contend are theirs
and not owned by the Soviet govern
ment.
The concessions hitherto offered tc
, American and British promoters b.
Leonid Krassin, soviet commissar o
trade, have been too nebulous to al
: tract capital, in the opinion of pros
6 pective developers Frequently TIL.
, hesitation has been based on the fac
: that the former owners OF the proper
ties may some day claim them. Thi.
!, fear the Bolshevists believe could b,
largely dispelled by the internationa
recognition of their right to nation
: alize property.