The Washington herald., 1922-05-11
Russia Holds Up Reply,
As Italy Persuades Her
To Revise 1t.
CONCILIATORY NOTE
LEAVES DOOR OPEN
Is Not Categorical Ac-
ceptance, But Does Not
Force Rupture.

LONDON, May 1o.-In the event
that the French withdraw from the
Genoa conference, they will go alone
and the conference will continue
without them, according to the plans
of Premier Lloyd George as out
lined in a Genoa dispatch to the
Daily Chronicle. Lloyd George SUP
porter.
The dispatch adds:
LLOYD George has his jaw set
and he is determined to carry out
tee measures necessary for q Eu-
ropean settlement. no matter how
long it takes or now difficult the
way"
GENOA, May IL CThursday).-The
Russian reply to the allied propos-
ais was still undelivered at o'clock
this morning. The revamping pro-
ess may continue all day. Tchit-
cherin's position is most difflcult
because of the pressure the British
and italians are exerting In favor
of a conciliatory reply. Moscow II
is reported here. is advising Tchit-
cherin not to yield.
Copyright. ls22.)
GENOA, May 1O.-The postponed
ing Russian reply to the allied
economic proposals quickly leaves
the way open for further hopeful
discussion of the question on which
the Genoa conference has very
nearly been wrecked.
This was learned on excellent au-
thority. The reply is not a cate
gorical acceptance such as France
and Belgium has demanded, but 1t
is conciliatory in tone.
The answer states emphatically
that the last thing Russia desires
Is a breakup of the conference. II
charges that if the conference rails,
the responsibility will fall on those
powers which place the interests OF
certain social groups above the
common interest. This Is Iialhly
an inferential attack on the French
and Belgians who, although they
did not sign the allied memoran-
dunn, threatened to quit the confer
ence unless Russia made cate
zorical acceptance.
Yield to Schanxer.
The Russians, it was learned au-
thoritatively, have revised their re-
ply on the suggestion OF Foreign
Minister SchanZer of Italy. VINO m :
duced the Bolsheviks to postpone IL
until il could be made more satis-
factory to British and Italian views.
This is the reason Tchitcherin failed
to deliver his reply this morning
as had been expected.
The recognition of war and pre-
war debts is made practically con-
tingent upon the allies advancing
direct loan. il is learned The Rus
sian reply emphasized that the pro-
posed consortium and other suG-
gested forms of assistance are
wholly inadequate.
The clause regarding private
property was readjusted to meet
more nearly the British and Italian
views.
would Make Restitution
The Russians are understood to
recognize the principle OF restltu-
ti0n or compensation for private
nroperty confiscated by them, but
oppose the suggestion for tribunals
TO fix compensation terms. Ihe
Russian reply suggests that COM
pensation could be arranged through
direct negotiations and could be
worked out later. possibly on the
principle of a certain percentage
Of the original value of the prop
erty.
There has been sno change. it Is
understood, in the lengthy preamble
emphasizing that what Russia
needs is recognition, loans and
guarantees against oNside in
tervention.
Preliminary drafts of Tchitch-
erin's reply recognized in principle
both war and prewar debts pro-
vided they were reduced by a
moratorium Schanzer. of Italy, is
said to have assured the Rus
SLAMS he expected no difficulty in
that direction. Tchitcherin is also
reported to have agreed that the
1000, 100000 gold ruble loan which
the Soviets are demanding could
be partly supplied in the form Of
goods.
Brings Up Boundary Snag.
An attempt to focus the atten-
tion of the conference on the un-
settled war-breeding situation in
Eastern Europe was made by Lloyd
George during the lull while the
delegates waited for the Soviet
reply. The British premier labored
under difficulties, however, as the
nerves of the leading delegates
are taut from the tension de-
veloped by the series OF delays
in the Russian answer.
The convening powers met to
take up a post of questions, in
cluding boundary disputes along
the frontiers of Eastern Galicia and
Lithuania This gave Lloyd George
an opportunity to bring up the gen.
eral question of eastern frontiers,
which, he said, is breeding the
germs of another European war.
The British premier insisted that
the situation should be laid before
political subcommission. He is
trying to get the conference to
work on the boundary situation
hoping that II some readjustments
can be made, the danger Of war
Will be minimized. 1t is also pos
sible he sees here an opportunity
to keep the conference going
while the Russian mess is being
Strengthened.
Answers Barthou's objection.
But when Lloyd George sug-
gested laying the eastern boundary
situation before the political SUBJ
commission. NJ. Barthou, of the
French delegation; objected that
CnnfSnued O,, p00. 80.