The New York herald., 1922-03-04
PROCESS MUST BE SLOW
ny LAWRENCE HILLS.

Special Cable to THE New YoHK HERALD.
Copyright. 1899. by THE Nnw York HERALD.
New York Herald Bureau.
Paris, March 3.
The success OF the Russian con-
scrtium scheme, to which the final
touches have just been placed in Lon
don. is still very doubtful in the opin-
ion of some of the foremost financiers
and political leaders here. The plan
has been very carefully studied since
the London meeting. where 1T was de-
cided that the Governments should
not subscribe all the capital fer ma
tional subsidies. but should guarantee
the safety Of investments.
This it is generally held precludes
the chance for American membership
in the consortium. but on the other
hand France and Belgium, though
doubling the feasibility of the plan,
feel that to protect their own interests
at least a passive participation is
necessary.
1t is the fear of an Anglo German
italian bloc in the proposed con-
sortium which would bring profit to
these nations to the disadvantage Of
France which seems to be at the bot
tom Of much of the opposition from
political and financial circles here.
Even though France agrees to become
a member. influential groups in the
Chamber and Senate before extending
credits are insisting on new pledges
from Russia of kind that would seem
to render impossible the prospects OF
extensive commerce with the Soviets.
The group opposed to the consortIum
includes not only such anti-Bolshevists
as Senator Noulens but also Francois
Poncet director of the economic bureau
recently organized by Eugene SchAci-
der.
Doubts Plans Success.
NJ. Poncet, although M. Schneider was
one of the formulators Of the consor-
tium program at London, insists that
France cannot expect anything from
the plan. as once the initial credits are
exhausted Russia will be In a worse
state than ever, with her entire gold
balance dispersed and her productive
capacity as dilapidated as ever.
In talk with THE New YORK HER
AID correspondent VI. Poncet outlined a
supplementary program which he con-
sldered essential to Frances participa-
ton in extending credits. This program
provides:
First-The creation of a special debt
fund at Moscow under allied control in
which Russia is to deposit percentage
~ fr t,a-
creased prosperity
Second-Agreement by the Soviets to
recognize the independence of tho sue
cession States to which French and
other allied financiers already have ad-
vanced credits. thus taking the Balu
and Batoum ell concessions as well as
the mining concessions In the Baltic out
of Moscow's control.
THE Genoa conference and the con-
sortium plan." said NJ. Poncet. were
both born or Russian insistence brought
to bear indirectly through England
When the economic treaties were signed
both England and italy failed to bring
the results expected.
"But Russia Is beyond any help by
credits alone. Any process TO be sue
cessfui must be gradual, with the edu-
cation of the Russian people as a fac
tor as vital as the slow restoration OF
indutrial and agricultural productivity
Our agents have obtained statistics
from Soviet sources showing how i'm
mense is the task of rehabilitation. For
instance, Russia. which before the war
produced annually 10000 tons Of tools.
to-day produces less than 1000 tons a
year. The effect OF this on the agricui-
tural regions has been to reduce cereal
nroduction from 70 600 600 to a 900 600 tons
while less than 10000 acres are planted
to flax, compared with 100000 acres
before the war;