The New York herald., 1922-04-22
ALLIES ENCOURAGED
BY RUSSIAN REPLY
Relieved by Comparative
Moderation Of Note on
Experts Report.
SOVIET 0RATORY MILD
Rakoysky Emphasizes Only
Loan and de Jure Recog-
milton as Necessary.
WON'T YIELD TO FORCE
Ready to Compensate Foreign
ers if Compensated for
Intervention.
WON'T YIELD TO FORCE
ny FRANCIS M,cuLLAGH.


COPYRIGHT, I9se. by TIE New York HERALD.
GENOA. April 21.-The gist of the
Russian memorandum in reply to the
allied experts London report has been
outlined in a general way in previous
dispatches to THE New YORK HERALD
reporting interviews with the Bolshe-
visit delegates here. 1t begins by show
ing contradiction of the Cannes
resolution in the London report. The
remedy which the Bolsheviki propose
is immediate and energetic aid Of
fered to Russia by European capital in
long term credits, in money and not in
goods, and no exploitation of Russia's
resources by a group of foreign capi-
talists.'
There is included what purports to
be a copy of a secret telegram from
Colonial Secretary Winston Churchill
to Admiral Kolchak, by way OF proof
that England was behind Kolchak
Other messages and excerpts are ap-
pended with the purpose of showing
that the Allies were responsible for all
anti -Bolshevist movements in Russia
from 1918 onward.
ON Way TO settlement.
The general impression Is that the
matter is fairly on its way to settle
ment. As previously the Russians ap-
peared uncompromislngly set upon their
purpose. the Allies were relieved by the
comparative moderation of the note In
his press meeting to-day Premier Chris
ton Rakovsky OF the Ukraine was
heclSled over the discrepancy between
the memorandum and the letter on the
question of debts.
NJ. Rakovsky said that mutual con-
cessions were expected. but he spoke
only vaguely of war debts, evidently un-
willing to admit that the Bolsheviki
would recognize them. lie emphasized
two points-the loan and do jure recog-
milton. The latter was necessary he
said, not for the sake of snobbish cere-
mopy,. but TO. enable Russia to obtain
credits.
Bolshevist oratory has become much
milder, and the situation was never so
trauSnt Wftn nope.
The memorandum describes economic
and judicial reform for the protection of
foreigners against illegal requ.sitions,
confiscation and arrest, with especial
guarantees for foreign concessionaires,
but does not expect these measures will
be effective until Russia is recognized
de jure.
II protests against the capitulations
proposal and denies Russia Is jurid-
cially compelled TO compensate foreign
ers whose property has been national
lied, as those foreigners fled from Rus
sia or were withdrawn by their govern
ments and therefore Russia is not re-
sponsible for the destruction of their
property.
1t treats of foreign intervention and
blockade along the lines presented by
the Russian delegates In dispatches. 1t
says, nevertheless, that the Soviet Gov
ernment is ready to compensate foreign
ers If it is compensated in turn for
intervention-and there is a balance on
the Soviet side of the ledger.
IL considers 1t unjust to set war debts
against intervention compensation, and
explains at length why Russia Is phys
ically unable TO pay the sums the allied
experts would exact. General inter-
national liquidation of the obligations Of
the war period is suggested.