The New York herald., 1922-04-22
NOTE ACCEPTABLE
Soviet Refers to Seizure
of Liquor in U. 5. as
Argument Against
Paying for Property
DEBT IS A BIG ISSUE
Surrendering of Counter
Claims Carries Plea for
Financial Aid.
GERMANS FALL IN LINE
Will Not Sit in Discussions OF
Soviet Affairs-Gcnoa Farley
Cloud Fading.
GERMANS FALL IN LINE
ny RAYMOND SWING.

by RAY MOND SWING.
Special Gable to THE Nrw YoRK IiEaNp.
Copyright. 1899, by THE Nsw York lIERAtp
GENOA, April 2l.--The conference
has emerged from the tunnel, for
cussion OF all Russian questions
dealt with in her treaty with the So
viets, and Russia has made a 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, aud to-day it is
suspected that he also may have had
foretas.e of the Russian answer
as we'll. for it goes considerably
further than conference observers
had expected.
The Russians withdraw their
counter claims, they acknowledge
their debts to foreign nationals and
agree to compensate private indiyid-
uals who have lost property through
It's being natioualized or withheld.
Debt Issue TO He Decided.
The next stage in the discussions
is to determine how much of Russia's
debts and interest is to be under.
written, and what form the com.
pensation to foreign nationals Is to
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: w
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 1t has been formally recognized
dc iure 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 de
iure recognition. which is no more
than what the conference promised.
plus the opening of diplomatic rela-
tions.
Russia's answer was stated briefly
in 4 letter from Georgevitch TchitcE-
erin to Mr.. Lloyd George. formal
and lengthy document is also TO he
handed over 70 the political subcom-
mission. This enters into tho de-
tailed and theoretic aspects OF tho
Russian Governments position.
The British went long way to-day
il showing ttcir sympathy for Rug
sia's difficulties In trying to reconcile
their sovereignty with demands for
tho return of property confscated b.
the State. Where the property has
been nationalized Il Is question Of
restoring freehold rights" was the adj
mission OF an English official TIE
British also declared that the Russians
made telling use" OF historic prece-
dents 10 justify them in paying no
compensation. One Of these was
Americas failure to pay slave holders
when slavery was abolished BY Presl-
dent Lincoln's proclamation Tho
other was tic adoption Of prohibition
without compensating the owners and
manufacturers OF liquor.
Russia's Reply Accepted.
Tho Political Subcommission met
this afternoon and accepted Russia's
reply rs the basis Of future dealings
y then disposed OF immediate DIM
cultics by submitting tine question 10
. special body Of experts. Germany
was not present Pursuant 10 "A pro
gram arranged at meeting OF tho
remaining members OF tho subcom-
mission this morning seven experts
vere named. Each Of the convcning
Powers has q representative. tho neu-
trails tIToiland). one. and one (Czecho-