The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1923-03-22
Reds Must
Pay Before
Recognition
Soviet Must Make Arrange
ments 10 Take Care of Debt
Before Negotiations Can
Begin, Hughes Declares.
NJ enace in STABILITY .

~ Washington, March 2I-Secretary
of State Hughes today formally as
serted policy Of nonreeognition Of
soviet Russia until some acceptable
arrangementshall have been offered
10 pay the national debt Of that coun-
try.
Ar Hughes was addressing a dele
gaticn of the womens committee for
recognition of Russia. lie took for
his text the decree issued by the
soviet government January q. 1918.
as follows:
"Tnconditionally and without any
! exceptions. all foreign loans are an
: nulled"
= have Vet 70 hear Of any change
in this announcement Of the soviet
authorities the secretary added
Suggestions which have been re
ported have always been coupled with
impossible qualifications.
The suggestions" referred TO were
the only credit given TO students of
the Russian situation, like Senator
William Z. Borah. who claims Rus
sia VIII pay all it owes il only af-
ed trade relations.
Menace i'm Stability.
Secretary Hughes appeared to see
a menace in the degree of stability
which friends Of Russia are pointing
TO as advancement worthy Of rec
osniton. lie said:
stability, of course. is important;
some speak as though stability was
all that was pecessary. What. how
ever. would avail mere stability if it
we're stability in the prosecution of
a policy of reputation and confisca
ss-ssn:' ,,. ......,.., -, ,...,..,,
tural conditions in Russia. have
somewhat improved, because. he
said. agricultural products are basic
in Russia
There is hope in that fact he
added. but agricultural conditions
are still far from what they should
be
Investments Needed.
I'VE have. in the case OF Russia,
the need Of investment. Russia needs
industry and trade, but industry and
trade cannot be created by any formal
arrangement. The benefit to Russia
through which her productivity can
lie increased and the basis Of industry
end trade provided must come from
those who make permanent invest
ment IN Russia, who are there to see
their transaction through on a basis
Of permanent relations. and who con
sequently. 50 far as they are foreign
ers, can he assured before they Will
contemplate such Investment that
these VIII be secure and worth while"
Answering the statement Of Senator
Borah and others that 16 nations are
at the present time trading with or
have trade agreements with Russia,
Mr. Hughes said:
There IS a good deal Of fallacy in
what il said about trade between
Russia and other nations. OF course.
other people are trading With Russia
and our people are trading with
Russia Trade is going on so far AS
it can go on, but it il relatively in.
significant
a., Wants To Promote Peace.
A considerable section Of his al.
dress was devoted 10 alleged oxtre-
mist statements which have been at.
tributed to Lenine and Trotzky from
time to time. This Is the scare which
Senator Borah says has been pulled
out Of the pigeon hole everY six
months for the last year.
Mr.. Hughes concluded his state
ment Of policy as follows:
II desire to see a basis for helpful
ness We want to help. We are just
AZ anxious in this department and in
every branch OF the administration as
you (womens committee for recoEni-
tom can possibly be- to promote
peace In the world to get rid OF
hatred. 10 have a spirit of mutual un-
derstanding, but the world we desire
is a. world not threatened with the
destructive propaganda OF the soviet
authorities. and one in which there
will be good faith and the recognition
Of obligations and sound basis or IN