The New York herald., 1922-06-18

Speciol Cable to THE New York HERALD.
Copyright, 1899, bv THE New York IiERALp.
New York Herald Bureau.
Berlin, June IL.
German promoters, with the idea
of taking advantage of the Rapallo
Russo-German treaty, are making
elaborate studies of trade and indus
trial possibilities in Russia, but they
hesitate to invest real money. The
time for this is not ripe, a leading
German manufacturer with a con-
cession in Russia told THE NEW YORK
HERALD correspondent, but he hopes to
begin operations in the fall.
Despite fantastic rumors of large
scale activities, even Hugo SHINES
has not as yet put any money into
Russian ventures, An associate OF
his explained that i. is useless to
invest until we are assured OF trans
portation facilities from the point of
departure to the destination, and
know that the goods we ship can be
assured of safe arrival. The shipping
problem makes progress slow. Also
we are waiting for the Soviet Govern
ment to give private property more
definite status"
Returning to Normal.
"The tendency to return to supstan-
tial business conditions is unmistak-
able said j. S. NovaChine, promi-
nent Ukrainian ship and mine owner IN
the Kamchstka region who engineered
the recent conciiiation between the
Ukrainian parties.
The Soviet government is coming TO
the point where it will recognize the
land titles which the farmers demand.
Pressure for greater freedom of trade
is forcing the Soviet government to
transform the bureaucratic machine IN
three ways: BY permitting free transpor-
tation of general utility wares such as
agricultural machinery; letting cooper
atives transact business abroad direct
without passing through the Soviet gov
ernments bureau. and Standardization
of many large factories into mixed and
private companies with extensive trade
privileges. With the machine thus mod
flied the Soviet government is looking
forward to the entry of outside enter
prise in a small way this fall. assuming
wider scope by next spring"
NJ. Nova-Chine is interested in two
land cultivation companies for the Uk-
raine. one a Franco-Russian concern
with experience in the use OF steam
plows in Tunisia and the other Rus
sian concern headed by two engineers.
one of whom irrigated part of Turkes-
tan, and NJ. Uhlmann. who built the
port OF Odessa.
krupps Get Concession.
The Krupp interests have taken a
5000 acre land concession which is ex-
cellent grain land with the possibility
of mineral deposits. The Krupps say
they are ready to begin operations now
but the transportation difficulties pre-
Vent the shipment II the necessary
agricultural machinery before the fall.
A Krupp director has arrived in Petro-
grad with the Henshell locomotive en-
sineers. The Krupps have several en-
gneers employed in the railroad repair
yards.
The report that the Krupps are re-
organizing the Russian munitions works
is premature, although prominent Ger
mans admit that the Krupps proba bly,
viii participate in this work. The idea
OF a Russo German military alliance
finds favor in German nationals.
circles.
Immediate realities show that only
five German trusts have permanent
representatives in Russia. Hugo
SHINES has not taken over the hotel and
factory concession as yet and does not
find the situation ripe ror the invest
ment of capital in industry.
Even the large German corporations
admit that they are embarrassed be-
cause of shortage of capital. It is
common practice for several rival firms
TO combine in sending one expert to a
foreign country. No German news
raper. not even Stinness paper, the
Dentsche AHegemsine zeitung, can af-
ford to send an exclusive correspondent
to Russia to-day. German correspond
ents are sent only when manufacturers
agree to share the expense.
A German manufacturer who ls plan
ming to operate in Russia said TO THE
NEW York HERALD correspondent: 'Ir
our opinion the best way to fight Bolshc-
vism is 10 work alongside of Communist
enterprises and show by comparison the
superiority OF our methods. The diff
ference between our viewpoint and the
official American viewpoint is that not
isolation, but contact with the outside
world will restore normal conditions in
Russia. We avoid the discussion OF
abstract theories with the Bolsheviki and
limit our conferences to the considera-
tion OF practical and immediate prob
lens"