The New York herald., 1922-05-02
Commission Will Rule on
Claims Involving Seized
Property.
TO BE FINISHED TO DAY
Proposals Carefully Drawn Up
to Avoid Infringement Of
Nations Sovereignty.

GENOA. May l ASSOCIATED Press -
Chief Justice Taft of the United
States Supreme Court will be asked
to name the chairman of the mixed
Arbitral Commission to be estab
lished for controlling the debts owed
by the Russian Government to for
eign bondholders, according to the
/ plan arranged to-day. Two other
members Of this Commission will
represent all the bondholders and the
Russian Government respectively.
The Commission will have power to
remit interest and decide all ques
tions affecting foreign bondholders
and Russia's ability to meet her obl-
cations. A time limit will be fixed in
which bondholders may make their
own arrangements with the Russian
Government if they desire.
Mixed arbitral tribunals, one for
every interested nation, will be set up
to deal with the question OF the prop
erty of foreigners which has been ma
| tionalized the chairman OF each will
be named by the chairman of the
mixed Arbitral Commission In the
plan adopted practically everything
which savored of capitulations or in.
fringement on Russia's sovereignty
was waived. The French suggestion
that a provisional administration
pending Russia's establishment of
courts on the basis desired by West
ern Europe was not approved.
Clause Covering Debts.
The text OF Clause 2 OF the memo
randum which will be submitted To
the Russians, relating TO intergovern-
mental debts, is as follows:
In conformity with the Cannes
resolutions. the Russian Soviet Gov
ernment recognizes all public debts
and obligations contracted or guar
anteed by the Russian State; that
is to say, by the imperial Russian
Government or the Russian Pro-
! vional Government. toward foreign
! Powers.
! Paragraph l. Being desirous OF
/ facilitating the immediate recon-
struction of Russia and the rehabili
ttation of her credit. the creditor
Powers are willing TO make no claim
on Russia at present either regard
| ing capital or interest for the pay
ment of advances made TO the Rus
I sian Government during the war.
! Paragraph 2. The Allies can ad-
NIT no liability for the claim against
them set up by the Russian Soviet
| Government for loss or damage suf-
fered during the revolution in Rus
sia since the war.
! Paragraph 3 When an arrange
ment has been concluded between
the Allied and Associated Powers for
the liquidation or Encouragement OF
war debts the allied Governments
will submit 10 their Parliaments
measures for reducing or modifying
the amount due by the Soviet Gov
ernment on similar lines and with
/ due regard 70 the economic and
| financial condition of Russia. but 4
these measures win be conditional
| on renuneiatlcn by Russia Of the
claim mentioned in paragraph 2.
Paragraph 4 Where Responsible
| ty for liabilities contracted by the
! Soviet Government or It's predeces-
sors toward foreign nationals has
been assumed by the foreign Gov
eminent the liabilities will be treated
on the same footing as private debts
Paragraph 5 The preceding pro-
visions OF this clsuse will not apply
10 balances standing to the credit OF
former Russian Government in
any bank situated In a country the
Government of which has made ad-
vances 10 former Russian Gov
ernment or assumed responsibility
for any Russian loan foated in that
country between August l. 1914. and
November :. 1917. Such balances
shall without prejudice 10 the rights
of third parties be transferred to the
Government concerned The liability
OF the Russian Government With re.
spect TO war debts shall. pro tanto.
be reduced.
Special clause regarding Rumanian
deposits In Russa.-The Soviet Gov
eminent will restore to the Ru-
nanian Government the deposits
made at Moscow by the said Ru-
manian Government
Belgium Alone objects.
The Russian reconstruction plans VIII
be considered again tomorrow Tor the
purpose OF clna editing and win prob
nbly he sent Immediately TO the Russian
delegation
Belgium alone held out on the section