Middletown transcript., 1922-05-27
UNITED STATES
| WARNS EUROPE
Sovietism Must Go As First
Step to Revival
PARLEY ON WRONG BASES
Economic Should Have Preceded Po.
lIticaI lnquiry-No Loans To Gov
ernment Denying Recognized
Form OF Security.

~''' ~ SSSe''hys
WashiIgton.-An elaborated state
ment of the American viewpoint as to
the expert discussion of Russian eco.
nomic problems at The Hague, cabled
by the State Department, formed the
basis of Ambassador Childs' confer
ence with Senator Schanzer and
Premier Lloyd George in Genoa. The
communication, however, merely made
more positive, If possible, the convic-
| ton of the Washington Government
that Russia must rid herself of Soviet
ism as the first essential step toward
economic restoration.
1t was made plain that while the
| United States does not desire to i'm
pede in any way an inquiry by inter.
national experts as to what is the mat
ter in Russia, and is prepared to join
in any plan purely for the purpose of
making such an inquiry, Washington
officials are certain that result would
be only to show that chief economic
barrier to Russian restoration is
Sovietism. Until the doctrines of gov
ernment, which are woven through the
Russian memorandum of May IL, have
been overturned and Russia is gov
erned under the same economic
theories, whatever the form of her
government, that prevail throughout
the rest of the world, she cannot, in
the American view, expect again to
set up trade and commerce relation
ships with the world at large.
Obviously it was pointed out that
the United States Government will
not consider any question of a loan to
Government based on principles that
avowedly would deny any recognized
form of security for the loan 1t is
useless for the Russian delegation at
Genoa or anyone else to believe that
even recognition in diplomatic way
of the Soviet Government would lead
to such action, it was said. And if
public funds are not to be available
| for such loan American private cap
ital would be still less willing to ven
ture into Russia, it was pointed out.
At the same time the Washington
Government was said to believe that
an economic diagnosis of Russia's
affairs by an international group of
experts, including German and Rus
sian specialists in commercial mat
ters, railroads, industry or other sim
liar questions possibly might be in
order to form basis for interna-
tional conversations as to Russia on
which all were agreed as to the facts.
The outstanding fact thus to be
! developed, however, in the Ameri.
can viewpoint, will be that Sovietism
itself is the stone wall that blocks the
lily of nations.
The point that blocked American
participation in the Genoa Confer
ence and again stood in the way of
American acceptance of the invita-
tion to The Hague, it has now been
explained fully to the conferees in
Genoa was that the whole proceed
ing began with negotiations of a po-
| litical character, involving an i'm.
piled at least, forecast that the Soviet
Government might be recognized by
other Powers. These negotiations
preceded an exhaustive economic in.
quiry, whereas the American view Is
that they should have been preceded
by the inquiry.
Not only has the American view
point been recommended to Genoa
through Ambassador Childs in am
| nlif1ad form hnt n ic knnun thpt
diplomatic representatives of the Pow
ers here have taken a hand in the
matter and forwarded very full exposi-
tions of the situation in Washington
after conference with Secretary
Hughes.
Because of the nature of these
communications there would be little
surprise in informed diplomatic circles
in Washington if the basis of the ex-
perts meeting at The Hague were COM
pletely revised before it is approved
by the plenary session of the Genoa
Conference.
1t is learned here that the degree
of confusion existing in Genoa regard
ing the attitude of America was much
greater than had been thought posi-
BILE and the action taken by the sub,
commission of the Conference relative
to The Hague meeting, taken in con-
nection with the messages received
here from negotiations in Genoa are
regarded by officials as clearly ex-
hibting such misunderstanding that
when the truth is made known, some
modification of that action will be in
dicated.