The New York herald., 1922-04-21
Promise Of Mining Grants and
Some Indemnification Re-
ported in Soviet Offer.
DIR. RATHENAU WON OVER
Admissions Of Deal, Made in
Berlin, Deny Secret Clauses
Urged by Industries.


Special Gable TO THE New YORK HERALD.
Copyright. 1929, bv THE New YORK HERALD.
New York Herald Bureau,
Berlin, April 20.
Tho Soviet Government has prom
ised certain German groups important
mining and other concessions and has
assured German manufacturers that
they will receive special consideration
and some indemnification for their for
mer property should the German Gov
crnment consent to participate in the
Bolshevilsi's political game and give
the Soviet Government full recognition
by the treaty signed at Rapallo. These
assurances have won over many pow
erful industrial groups and undoubt-
edly influenced the German Govern
ment
Well informed circles admit these
promises have been made, but insiat
there are no secret clauses in the
treaty. The preliminary economic
negotiations with the Bolsheviki were
begun before DR.. Walter Rathenau be-
came Foreign Minister and reached a
point where Germany agreed to re-
nounce participation in an interna-
tional consortium to exploit Russia
tho scheme particularly fostered by
England.
In return che Bolsheviki offered to re-
pudlate ultimate war claims against
Germany under Article lie of the ver-
saillcs treaty. DR.. Rathenau found the
compromise In conflict with his program
to placate the Allies and TO form an
international syndicate with them for
the exploitation OF Russia Fearing TO
arouse French and British disapproval.
he declined to put Germany on record
as standing out against the syndicate
scheme.
Later. when the London proposals
relative 90 the economic penetration OF
Russia aroused the opposition OF Ger
man manufacturers and British bankers.
both Germany and Russia regarded the
consortium idea as impractical and
turned their attention TO their own
direct collaboration. The Bolshevik
ceased to make the direct trade agree
ment conditional upon Germanys assent
to allied schemes for the exploitation OF
Russia and redoubled their efforts 10
secure the grant OF real or apparent
concessions in return for their renun-
citation OF possible claims against Ger
many under the Versailles treaty. The
Russians sought Germany's repudiation
of all claims for indemnification for
German property in Russia which the
Reds had confiscated.
DR.. Rathenau objected vigorously
here. because his firm. the German Cen
eraI Electric. and other German man
ufacturers hoped for some ultimate in
Identification b. Russia for their prop
erty.
Georgevitch Tchitcherin. the Soviet
Foreign Minister. finally agreed to the
modification TIM. Germany receive equal
rights with other countries In any ulti-
mate naturalization. and assured DR..
Rathenau that big German industries
would receive Immediately and infor-
mally partial reparation in compensa-
ton payments IL they would drop all
formal claims. The outcome was the
compromise In the text OF the treaty.
where Germany partially recognizes So
ciallzation and confiscation BY the Boz
sheviki
The Bolsheviki are active In Develop
ing direct trade relations with German
manufacturers. German industry an
proves the line of the Russo-Gerrnan
treaty. desiring TO reserve It's freedom
Of action. now that anxiety over the
reputation clayse Is dispellcd through
official assurances that II shall receive
as much as any other interests. IN pro-
portion TO It's claims.