Evening star., 1923-10-13
FRENCH ARRANGING
PACT WITH RUSSIA
Soviet Ready to Pay interest
on War Bonds, Paris Of
I ficialS Hint.
BY Wireless to The Star and Philadelphia Pub
lie Ledger. Copyright. 1923.

BY Wireless to The Star and Philadelphia Pub
lie Ledger. Copyright. 1873.
PARIS, October 13.-French recog-
milton of Russia through the medium
of a commercial treaty is forecast in
extraordinary negotiations going on
today between a group of French
bankers and capitalists and A. l..
Scheinmann, head of the Soviet State
Bank.
Although the negotiations are being
conducted with great secrecy, 1t is
significant that at the same time the
bankers were comforting Paul Rogers,
president of the Paris Chamber of
Commerce, made statement to the
effect that commercial relations be-
tween France and Russia can be re-
sumed with adequate guarantees from
Moscow"
Insist on Guarantees.
NJ. Rogers added that France might
deal with any kind of a government
in Moscow and even would admit
Russian railroads to the International
Union of Railways If Moscow would
guarantee to protect merchandise ana
business representatives.
The mission of the soviet state
banker. in addition to arranging for
huge commercial deals, includes spec
tacular negotiations for the dispo-
sition in France of 22,0G0 carts of
diamonds and other precious stones
still in the possession OF the soviet
government as the balance of jewels
looted from Russian churches and
from private owners.
Five Other Points.
1t is authoritatively stated that the
other negotiations are: First, to ar
NsTNa
Of the sugar industry in the Ukraine !;
second, to bring about through
French banking interests recognition
of the soviet government by the Quai
dor say, in return for which MOSCOW
Will offer very tempting compensa-
tion for the holders of the old Rus
sian bonds; third, to negotiate large
sales of Russian wheat to France /;
fourth, to arrange for one of the
French banks to act in the future as
the official financial representative of
the soviet government, and, fifth, to
secure recognition for international
currency purposes of the new soviet
ten-ruble gold notes, or tchervonetZ,
which were issued by Moscow last
December and are backed partly by
gold and partly by merchandise.
History of bank.
The Russian State Bank, which
Scheinmann heads, Is the successor OF
the INSTITUTION suppressed IN lSl 1
when all Russian banks were nation
allied. When the soviets discovered
in 1921 that even u communist state
could not do without banking institu-
tions IL was reSurrected and trans
formed into a bank of issue.
VI. Scheinmann's mission is un-
doubtedly to obtain recognition OF
the soviet by France as a govern
ment de jure. 1t is understood that
to obtain this he was authorized by
Moscow to promise that the soviet
would recognize its liability to pay
interest on the old French loan to
Russia and that it would actually
pay through one of the French banks
the next installment of interest due
on these coupons provided the French
government would undertake, once
payments were resumed, formally to
recognize the Moscow authorities as
the Russian government de jure.
The extent of the rise in Russian
bonds on the Paris bourse is more
than significant when 1t is remem-
bered that for years past these bonds
have been absolutely stagnant. All
issues today had an exceptional rise
Of several points.
Scheinmann's attempt to find pur-
chasers in France for $4,000 carats
of precious stones may be regarded
as hopeless. Not only is the frontier
closely watched but members of the
diamond trade are unlikely to coun-
tenanCe the disturbance that would
be caused to their business by the
unloading of such an enormous guam
tity of Jewels