The New York herald., 1922-05-03
ALLIES HAND TERMS
TO RUSSIAN ENJOYS
Debts Must Be Recognized,
but Payment Will Not Be
Pressed.
LOSSES ARE REPUDIATED
Property Not Returned to
Owners Must Be Leased
to Them.
LOSSES ARE REPUDIATED
BY FRANCIS M,CULLAGH.

BY FRANCIS M'CULLAGH.
Special Gable to THE NEW YORK HERALD.
Copyright, 1922, 5y TIE New York HERALD.
GENOA, May 2.-The Russian memo
randum was handed to the Russian
delegation this evening. The first ar
ticle says that Russia's debts must
be recognized, but the creditor Powers
do not demand immediate payment Of
capital and interest OF war debts"
Article III. sets forth that the Allies
do not admit the responsibility at
tributed TO them by the Soviet Gov
ernment for losses suffered by reason
of revolutionary attempts after the
war fWrangel, Kolchak. Yudenich.
Denekine).
Article III. states that if Russia re-
nounces her claims for such losses
the allied and associated Powers. when
they reach an agreement for the liqui-
iation and regularization OF war
debts, will submit to their Parlia-
ments measures for the diminuatior
or change in payments due by the
Soviet Government, taking into ac-
count the economic and financial con-
ditions of Russia.
Article w. announces that when re-
sponsibility for the undertakings en-
tered into by the Soviet Government or
it's predecessors toward foreign sub
ject will have been assumed by for
eign Government these undertakings
will be regulated upon basis OF pri-
vate debts As for the economy of pre-
ceding Russian Governments as Il af-
fected the banks and countries making
loans tn former Russian Government
which assumed responsibility for Rus
sian loans from 1914 to November, 1917,
this money will be accredited to that
Government. without prejudicing the
rights Of the third parties and the Soviet
Governments responsibility for war
debts diminished pro tante. II is Inn
piled that the Soviet Government mus.
restore Rumanian treasures entrusted
10 Russians during the war and during
the invasion OF Rumania.
Other articles say the Soviet Gov
ernment must conclude an arrangement
before December 81. 1922. with repre-
sentatives Of Russian bond holders to
resume the interest on those bonds, and
that If such an arrangement Is not con-
cluded, the matter will be referred for
decision to mixed arbitral tribunal,
as described In previous dispatches.
Article vi. to which Foreign Minister
Jaspar of Belgium objected yesterday.
begins with the first two principles OF
the Cannes resolution. The first states
that nations cannot dictate to each other
regarding their own principles. regime.
property, economy. or government, II
~ foa IN oil n
system 1t prefers. The second says 1t is
impossible to place foreign capital unless
foreign investors are assured that their
property and rights are respected and
the fruits OF enterprise assured.
Article vi. then goes on TO say that
the Soviet Government shall recognize
the obligation OF restoring or compen-
sating for such property. II the former
proprietor cannot enjoy past rights he is
to be allowed under the form Of con-
cession the use OF his property on q long
lease, unless the mixed arbitral tribunal
decides otherwise. The tribunal Is also
to fix the compensation OF the foreign
proprietor. whose property must remain
nationalzed. There arc to be as many
mixed tribunals as there are. nationali-
ties of foreign proprietors.
II was Mr.. Lloyd George who induced
the French to abandon Article TX. OF
the French memorandum. establishing
capitulations. Mr.. Lloyd George said
1T Is absurd to expect that Russia viii
accept the capitulations system"
The treatment of Article H.. on war
debts. is noteworthy. The English had
asked that reduction be fixed by an
arbitral court. which implied Russia's
recognition OF war debts But the re-
viscd article records. for the first time
in an international act. the principle that
as the allied and associated countries
debts must aft,rward undergo gem
cral revision. therefore Russia will en-
joy the same rights as the others. save
that she shall get off lighter on account
OF her specially ruined condition. The
allied experts consider this happily
worded clause will satisfy the Russians.
who are clamoring for the annulment OF
war debts.
{ Mr.. Lloyd Georges encourage are US
Confined on pnre Sly