New-York tribune., 1922-05-12
Mixed Tribunal Headed
by Taft Appointec Il
Held Infringement on
Sovereignty of Russia
Insist on Demand
For Forei ON Credits
Refuse TO Reimburse Out
side Owners for Ma
tionaIized Properties
By Arthur s. Draper
En- Cable TO The Tr.buac

(Copyright. 1922, New York Tribune me,
GENOA, May 1.-THE Russian
reply TO the Allied note of last week
setting forth the proposed basis Of
future relations between Moscow
and the Western powers was handed
tonight to Carlo Schanzer, Italian
Foreign Minister and chairman Of
the economic conference Its chief
provisions are:
Russia rejects the Allied pro-
posal for determination Of private
property rights by a mixed tr,-
bunal headed by an appointee Of
Chief Justice William Howard
Taft, Of the United States SUI
preme Court, alleging such a plan
would infringe upon Russian SOW
ereignty.
Russia renews her demands for
credits and recognition Of debts
due Russia growing out of the
Allied blockade and the military
operations of Denikine, Kolchak
and other anti-Red leaders.
Russia proposes the formation
Of d JOINT commission to study the
financial differences existing be
tween the Soviet government and
the Western powers.
Main Issues Left Unsettled
Conciliatory as the note was in some
respects, it failed to dispose of any o.
the Chief issues raised by the Allies
That it viii not precipitsts ,.n nun
date conclusion of the negotiations
was made evident by the announcement
in British circles that the Western
powers would reply to it The politica;
commission, the guiding spirit q
the conference, will study the Russian
note at conference tomorrow.
A few of the Allied deiegates held
informal conferences on the reply to
night. Some hope of relief from tho
difficulties involved III continuation
of the inconclusive negotiations here IS
seen in the proposal TO appoint com-
mission TO study the chief financial il
sues and arrive at settlement that
could be considered by a future confer
ence OF all the powers.
Spokesman for both the French and
Belgian delegations, which had with
held their approval from the AllieG
note last week, expressed disappoint-
mcnt over the Russian reply They
said they thought that it completely
justified their aloofness from further
negotiations with the Bolsheviki until
private property rights were fully rec
ognized, and they did not believe that
the Bolsheyik note offered satiSfac-
tory basis for further dealings.
The Italian delegation alone WAS op
timistic that some solution could now
be discovered for the five weeks rc
passe that has existed at the confer
ence. Delegates of the smaller states
and the neutrals were frankly pess,-
mistic over the outlook for reaching
any understanding. 1t was agreed or
al sides that should the present nego,
tiations for common agreement fail.
separate treaties between Russia and
the individual nations would follow
quickly.
Allied Program Denounced
The Russian reply, revised half "A
dozen times in the last two days as
the result Of a food of instructions
from Moscow. assailed the Allies for
demanding everything and offering
nothing in return. 1t insisted that the
Western powers concede something III
exchange for the concessions de-
manded.
In view Of the very conciliatory tone
adopted by Georg Tchitcherin. chief Of
the Bolshevik delegates, who handed
l.. 10 Eot, ,o
that the negotiations proceed, it is be-
lieved that Tchitcherin made the text
of the reply bombastic and demanding
in order to satisfy Moscow. 1t - be-
lieved that when the principal points
at issue are gone over in personal con-
ference he will be much more reason
able
The Russian reply consisted of nine
teen typewriter pages IN excellen.
English. 1t had been written by Pas
cal, former lieutenant of the French
army. who remained in Russia as a Red
after a visit there with French mig
sion.
The note asserts that the Allied
memorandum to Russia OF last week
represented a step backward since the
agreement reached between the Ru4
sian and Allied delegates at Lloyd
Georges villa on April 18. There FOL
lows long review OF the situation in
central and eastern Europe, especially
Russia, and an outline Of the various
proposals regarding credits, loans and
concessions that the Bolshevikj have
made
Capitalist Influence Charged
The note complains that the Allies
instead of taking up in earnest the
problem Of Russia's reconstruction
have given chief attention to obtaining
reimbursement for their losses il
Russia. The memorandum charge.
that the Allied program has been in
spired by small group Of capitalists
A number Of historical cases are citet
To prove thai N the past states hav,
scqucstered the proparty OF aliens, bu
the note complains bitterlS tha. rus
sia's case is not Judged on the hasi
of justice knt Of hatred and polit;cs
animosiiy.n
! The solution of the problem" it con
| tinucs, "is impossible unless the pow
crs at Genoa come TO tho idea that tn