The New York herald., 1922-04-22
Sulrendering of Counter
Claims Carries Plea for
Financial Aid.
GERMANS FALL IN LINE
Will Not Sit in Discussions OF
Soviet Affairs-Gcnoa Farley
Cloud Fading.
ny RAYMOND SWING.

ny RAYMOND SWING.
Special Gable TO THE Nrw YoRk IERNp
, Copyright. I92s, ~ THE Nsw YqRil HERaED,
GENOA, April 2l.--The conference
has emerged from the tunnel, for
Germany has retired from the dis
cussion OF all Russian questions
dealt with in her treaty with the So
viets, and Russia has made reply
to the conditions laid down by the
allied experts which has been char
acterized as satisfactory and hope
full basis for the continuance of ne
gotiations.
"The conference is still going
strong" declared Prime Minister
Lloyd George yesterday, knowing as
he said it what the German reply
was going to be, and to-day it is
suspected that he also may have had
as well, for it goes considerably
further than conference observers
had expected
1 The Russians withdraw their
counter claims. they acknowledge
their debts to foreign nationals and
agree to compensate private individ-
uals who have lost property through
its being nationalized or withheld.
Debt Issue TO He Decided.
| The next stage in the discussions
| is to determine how much of Russia's
I debts and interest is to be under.
written, and what form the com.
pensation to foreign nationals Is 70
take. While the Russians surrender
on counter claims they press for "adc.
quate financial help within the short
est possible period" and for de jure
recognition. They word this latter
demand shrewdly:
THE Russian delegation wishes
also to make it clear. although it
seems self-evident. that the Russian
Government could not admit liza.
bility for the debts OF its predecessors
until it has been formally recognized
dc jure by the Powers concerned"
II Russian negotiations culminate
in signing treaty that in itself will
be recognition OF the Russian Gov.
ernment. for a treaty cannot be
signed with a government which is
unrecognized The Russians ask do
jure recognition, which is no more
than what the conference promised.
plus the opening OF diplomatic rela
tions.
Russia's answer was stated briefly
in letter from Gcorgcvltch Tchltet-
erin TO Mr.. Lloyd George 4 fsrmni
and lengthy document a. Al Na ~
handed over 70 tie poiHles1 Nem-
mission. This enters inta Nt.
tailed and thcoretlc aspecit " fha
Russian Governments posigfen
The British went Ions way to-day
in showing ttcir sympathy FOR lsuF-
sia's difficulties In trying 10 reconcile
their sovereignty with demHnds for
the return OF property confscated ~
the State. Where the property has
been nationalized Il is question ot
restoring freehold rights" was the adj
mission OF an English official Ttc
British also declared that the Russians
made telling use" of historic prccc-
dents TO justify them in paying no
compensation One of these was
Americas failure to pay slave holders
when slavery was abolished by Presi-
dent Lincoln's proclamation The
other was Tic adoption OF prohibition
without compenssting tho owners and
manufacturers OF liquor.
Russia's Reply Accepted.
Tho Political Subcommission met
this afternoon and accepted Russla's
reply rs the basis cf future dealings
y then disposed OF immediate Diff
cultics by submitting tho question 10
q special body Of experts. Gcrmany
was npt prpaorf Pursuant "a a rYn