The Washington herald., 1922-05-02
Political Subcommission
At Genoa Completes
Ultimatum.
PARIS RESPONSIBLE
FOR STIFF TERMS
Russia Told Parliaments
Later w ill Consider
Reducing Payments.

GENOA. May 1.-Soviet Russia
must recognize the czarist and
Kerensky debts IL she expects re-
constructive aid from the allies, ae-
cording to the terms Of the So
called uItimatum just finished by
the political subcommission Of the
conference
IL Russia will agree TO this recog-
milton of obligations. the allies viii
make no immediate demand for
either capital or interest and wiz
seek to have their respective parlia-
ments reduce the amounts due from
the Soviets.
Russia. however. must not only
recognize her old debts in full. but
renounce all counter claims against
the allies II she expects to obtain
any ultimate reduction in her debt
These are the provisions agreed
upon by the political subcommissIon.
They probably will be ratified with
out much debate by the allies and
forthwith handed 10 the Russian
delegation.
France Forces Hard Terms.
All advance Indications are that
these terms will be unacceptab BILE TO
the Russians. The Soviets not only
must abandon all their proteststions
against recognizing the old debts.
but they must sacrifice tho very
valuable bargaining asset OF conn
ter claims against the allies for
40
of the white Army and for other at
tscks which the Bolshevists claim
were financed by outside nations.
And for this. they get only a
promise that the allies will take
UP the matter OF scaling down Rus
sia's debt in their respective par
| lisments later and a promise that
| no pressure will be exerted for
immediate collection of the debt
| or interest payments. These are
harder terms than Lloyd Georgt
originally was willing TO offer. hut
the insistence Of France. and her
| threats to leave the conference un-{
less a firm position was taken
have resulted in a marked stiffen-
ing OF the allied demands
Await L. =. Demands.
| The memorandum states that
question of reducing Russis's Wal
debt cannot be taken up until after
the allies have arranged for liQu-i
dation or rearrangement Of their
own war debts
The allies. il appears. are NOT
willing to let go Of any Russian
claims until they know just how
their negotiations with the Unttec
| States Debt Funding Commissior
come out.
But when this funding is-sr-
/ ranged, the "allied gOvernmentf
will submit TO their parliament2
measure for reducing or modifyfn
the amount due from the Sovi
| government on similar lines zr1
with due regard for the economt<X
and financial condition Of Russia-
the memorandum says.
Provide For MIxed Trfbunsi-
The articles dealing with nj
bunals were revised providing TO
mixed arbitrsl commission q
three members. the president tost
chosen by the Chief Justice OF m.
United states. one 20 be selected n
foreign bond holders and one III
the Soviets themselves. This col
mission would consider the ou<
tion OF remission on Eussia's
terest payment the method OF I'd
ment. Russia capacity TO pay All
other similar problems. fN
Then a pre-war debts comutiU
sion is provided for. 10 act on llv
half Of bondholders in all countrf.
holding obligations of the Russis
government. Bondholders won
, first try to make Their own AZ.
rangements with the Soviets ros
repayment, but IL unable to get q
definite understanding by a fixed
/ date, the debts commission wOufc F
take over the negotiations
TIN Between Diplomats.
To deal with the restoration o,
property formerly belonging e
the allies or 10 adjust compensa.
tion therefor. a group of mixes
arbitral tribunals. one for each ma.
tionality, is proposed. the chair.
men of each TO be named by ths
head of the mixed commission.
This clause was adopted over IN.
protest of Belgium, who votes
against IL after a sharp uT be
tween Lloyd George and Foreign I
Minister Jasper of Belgium.
Jasper proposed an amendmen
which would deny Russia an optfot
between restoration or compensa
ton for property. This was vote
down after Lloyd George declare.
IL would be construed by Russh
as an invasion Of sovereignty ans
would make an agreement impos
sible.
Tchitcherin's Letter Read
The conference will hold a DID
ary session Wednesday to receixJ
the reports of the financial an.
transport commissions
Tchitcherin's note 10 Bsrthou de
nying that the Russo-Germsl
agreement menaces France Na
read by the French delegate to th.
full meeting of the political sub
commission. Barthou then denie,
that France was ever hostile &
the Russian people and was on th
contrary anxious to resume norma
relations once more. The onl
French grievance. he added. wa
against the government which has
signed the Brest-I.itovsk treaty
Lloyd George described Tchitcher
} in's letter as gratifying"
The letter denied there were sec
ret military clauses in the treat
and expressed a desire on the pfr
of the Soviets for a rapproche zen
with France.