The New York herald., 1922-04-22
See Russia's Good Faith.

GENOA, April 81 tAssociated Press).-
TIE elimination OF the Russo-German
treaty from the controversy and Soviet
Russia's provisional acceptance OF the
allied conditions concerning foreign
debts and confiscated property of for
that the greatest congress European
statesmen ever had held will accomplish
something real and tingible for the re-
construction of Europe, including Rus
sia.
The conciliatory nature or the answer
OF tie Soviet Government contributed to
the optimism that the Bolsheviki ear
nestly seek an. arrangement with the
Powers by which Soviet Russia will be
permitted TO enter into the comfy of
rations. The clear ana brief demands OF
the Allies. which afford concrete basis
for discussion. are compared here by the
observers to the concrete American pro-
posals for naval limitation which .yere
introduced at the outset OF the Washing
ton conference and which gave the dele
gates to the Washington gathering an
opportunity to concentrate discussion on
something tangible and constructive.
The insistence of the Soviet on foreign
financial aid as a necessary condition
TO Russia's salvation serves to turn all
eyes toward the United States, for II
seems TO be recognized that effective
succor for Russia is impossible without
the participation of American capital.
This conviction is so profound that the
allied representatives are limiting that
they would like to see Richard Wash
burn Child, the American Ambassador to
Italy. attend the discussions OH Russian
affairs.
The sentiment regarding American
financial support was summed up to-day
by former President Motta of Switzer-
land. who said that without assistance
from the United States II would be very
difficult for Europe 10 win out. I'VE do
not believe that America will forget the
ties binding her to Europe" he de-
clared.
simultaneously with to-day's develop
ments here prominence was given press
dispatches from the United States as
serting that public opinion there did not
expect any assistance would be given
Europe until Europe put her house in
order and really got 10 work. settled me
problem Of German reparations and re-
duced her armies.
The Russians also submitted to the
conference another document in answer
10 the report made by the allied experts
sitting in London. 1t declares that IL
the terms of the report of the experts
were applied lit would lead to the ex-
ploitation Of Russia and the enslave-
nent of her laborious population to for
eign capital"
The memorandum draws a dark pic
ture OF the economic condition of the
world. with many millions of unem-
ployed ~ Europe and America alone.
England, Italy, France and Germany.
y says, from 1916 10 1920 produced %, :
00o0o0 tons or wheat less than before
the war, besides losing 10000 tons of
wheat which yearly was imported from
Russia. American wheat already is too
dear to-day for Europe. The want OF
markets and Of customers capable Of
paying, i is declared. has reduced the
work OF industry TO less than half what
Il is capable of producing
Such Is the situation which led up 20
the Cannes resolution and the Genoa
conference says the memoran andum
Nevertheless. despite the patent fact
that the great central problem Is the
reconstruction OF Russia In Europe and
not the reestablishment Of the rights 10
revenues OF small groups Of Russian
creditors, il Is to this latter question
TINT the London report Is devoted
THE only way OF obtainlnr v rapid
and powerful revival Of Russia econom-
ically Is to offer the Russian people
immediate and energetic assistance from
European capital under the form OF long
term loans OF money or merchandise
instead OF sackng Russia's resources
end retarding her economic development
TO the profit OF a group OF foreign capt.
fslists."
The memorandum continues by de-
monstrating the guarantees Offered by
Russia to foreign individuals or foreign
capital, which incllde liberty OF internal
commerce. juridical protection OF indus
trial initiatives and OF private capital
engaged in enterprises which the Rus
sian State intrusts to private companies.
liberty OF any one to carry on Industry
or commerce IN form not prohibited.
special guarantees for foreigners holding
concessions In Russia, and a civil code
and civil tribunals composed Of jurists.
But all the legislative and admins
trative measures protecting foreign capi-
tai and interests" says the memorandum,
will not become effective until tho
Government OF the Soviet has been recog-
nlzed de ture and its rights and COM
petence accepted without dispute
"ff the Soviets refuse TO recognize the
engagements OF former governments or
TO satisfy the claims of persons who sur
fered for measures Of political char.
actcr. such as the naturalization Of fac
tories, municipalizatlon OF buildings,
requisition or oonhscation OF private
properties, this does not mean that the
sovicts are incapable or lack the de-