The Birmingham age-herald., 1922-07-13
RUSSIAN FARLEY
 MAYEND WITHOUT
 SUCCESS, BELIEF
Stormy Session Held When Russian Leader and Non- Russian Interests Openly
 Disagree
By Associated Press

The Hague, July 12.-Tw0
 stormy sessions of the confer
 ences on Russian problems today
 disturbed the calm of the Car
 ncgie peace palace and apparently
 ended all chance of an agreement
 between the Russians and the
 other powers. Another session
 will be held tomorrow. which is
 generally expected by Russians
 md -Russians alike to con-
 demn the Hague conference to
 absolute failure.
 The chasm between the Russian and the other powers apparently Is far wider than at Genoa and the non- Russian group Is not divided as It was at Genoa. The British and French are acting now in agreement on the demands concerning nationalized property which the Russians say practically amount to insistence on absolute restitution.
 Use Is Exhausted
 This position was developed at the meeting this morning of the sub con- mission on property. after which Maxim Litvinoff head of the soviets, stated he believed that the conference had exhausted its usefulness and would end without results. This aft ernoon the commission on debts had equally unfavorable results. The Russians insisted on having the pres ent conference fix the total amount of pre-war debts Russia would be ex- pected to pay, but the non Russians stood out for fixing this sum through mixed commissions at a later date.
 At the conclusion of this meeting, ItfUinnff cra a fntarVfau Tn which he declared that the non-Rus- sian delegates had clearly agreed to make the conference a failure and were trying to pin the Russians down to answering questions in order to justify breaking up the meeting.
 Lftvinoff Bitter
 M Iitvinoff criticised the orRans ization of the conference bitterly; It's division into commissions, which was arranged before the Russians ar. rived, he declared was destined u complicate the negotiations and pre- vent their success.
 Capitalism and communism were pitted against each other in bitter battles today, which demonstrated the difficulties of harmonlzing the two economic systems. When the -Russians were insisting that the amount of pre-war debts which Rus sia shall pay must be decided by a mixed tribunal, M. Ltvinoff objected. saying:
 There are two worlds now, capi- talistic and communistic. One world would name a communicate, and the other capitallstic judge; it would require angels to do Justice on such tribunal, and I haven't met any angels and doubt whether they can hA found I to decide upon the amount of pre- war debts We shall pay"
 In this connection, Iitvlnoff also declared that the soviet government must know the amount of It's obliga- tions, as It expects to pay them.
 Russia VIII Pay
 Many respectable governments ad- init their responsibility for debts and interests, and don't pay them, he said pointedly. We intend to pay If we enter into an agreement"
 Discussing the situation with the correspondent of The Associated Press, M. Alphand, head of the French experts, said:
 "Today's developments clearly demonstrated that 1t Is impossible to carry on any negotiations with the soviet government whose sole ob- ject Is to obtain funds 10 perpetuate the soviet governments existence"
 Questions Evaded
 The bolshevik leaders evasion of the questions concerning restitution and their refusal to admit the right of compensation for appropriated property. which was accepted by the European leaders as inevitably meaning the collapse of the confer ence, came as distinct shock, as many believed the communists would shift their attitude at least to the extent of making further negotia- tions possible. In fact, the rigidity Of the bolshevik attitude proved dis quieting. because 1t indicated a con viction of the strength of commun- ism and the determination to make no compromise.
 In view of the unfavorable de- velopment in the European financial situation growing out of the de- moralization of conditions in Ger many, there Is no attempt on the part of the delegates to hide the fact that failure to reach an accord with Russia has served to postpone the day of Europes economic reconstruc- tion.