Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1922-04-28
RUSSIAN REPLY
SAVES FARLEY
Soviet Agrees to Pay All Debts
if Allies Grant Rec
ognition.
GERMANY ACCEPTS PROPOSAL
Berlin Delegates Will Take No Further
Part in the Negotiations Between
Allies and Russians-Confer-
ence to Continue.


plies to the allies demands. The Ger
man reply accepts the allied proposal
that the Germans take no further part
in the negotiations between the allies
and the Russians, but the reply does
not modify the effectiveness of the
Russo-German reply.
The Russian reply accepts the allied
proposal for payment of Russia S
debts, due to foreigners, and the res
toration Of foreign property national
lied by Russia, in case the soviet
regime is granted recognition by the
allied governments as a de jure state,
and is given adequate financial assist
ance.
The effect of the two replies is to
continue the German and Russian par
ticipation in the work here, and thus
to bridge over the crisis which recent
~ threatened to disrupt the confer
ence
While the soviet reply apparently
accepts practically all the allied de-
mands, the details of working out the
plan and the amounts the Russians
may expect in loans to restore their
country admittedly present . difficult
problem, without any certainty that 1t
can be solved and thus complete the
preliminaries necessary for Russian
recognition.
In principle, Russia agrees to estab-
lish a new currency on gold basis
and also to create a banking system
similar to that existing in capitalistic
states.
With regard to the question of Rus
sian debts due to foreigners and the
rights Of foreigners to the return of
their property or compensation for
damage, difficulty arises in reconciling
the resolution of the Cannes supreme
council, providing for noninterference
in the sovereignty Of any state, with
the allied project of restitution or
compensation for property.
Russia contended in reply that with
out violating its sovereignty it could
not restore full ownership Of property
to foreign nationals. In support of
their argument the soviet delegates
cited the abolition of slavery in the
United States, when there was no COM
pensation to slave owners. and the
American prohibition law, making no
compensation to owners of liquor
stocks.
The committee Of seven experts will
endeavpE to solve this difficulty by
getting down to practical cases. The
soviet delegates accept compensation
in principle, provided its form be open
to discussion and negotiations. The
subcommission Of ten members on
Russian affairs, Germany now being
eliminated, met the Russian delegates
and informed them that their reply
was satisfactory as basis for discus
sion.
The allies believe the Russian coun-
ter claims for damages due to inter-
ventions will disappear from the dis
cussions. The conference has yet to
take up the important problem Of
Russian courts and juridical guaran-
tees In the end 1t is hoped to make
a general treaty with Russia, of which
recognition of the soviet government
would be a feature.
An English representative said the
United States naturally was free to
do what she pleased about the treaty,
which it was hoped to prepare at
Genoa.
The allied proposals on finance to
which the Russians replied were text
ually as follows:
"Section l. The creditor allie gov
ernments represented at Genoa can
not admit any liability regarding the
claims advanced by the soviet gov
eminent.
section 2. In view of the serious
economic condition of Russia, how
ever, such creditor governments are
prepared to write down the war debts
owing by Russia to them by a percent
age to be determined later; and the
countries represented at Genoa would
be prepared to consider not only the
postponement of payments of interest
upon financial claims, but also the re-
mission of some part Of the arrears of
interest or postponed interest.
Section 8. 1t mUst be definitely
agreed, however, that there can be no
allowance made to the soviet govern
ment against: First, either debts or
financial obligations due to foreign
nationals; or, second, the right of such
nationals regarding the return of their
property and compensation for dam
age or loss in respect thereof"