Evening star., 1923-07-08
World Capital Sl,uns Russia
Because of SOviet SeIfishness
s.Heads Win, Tails You Lose" Principle
Must Yield So 13O, 100000 People
May Haze Justice. "

Krupps have a grant of 10000 acres
in the Don basin, and have enlisted
English capital to work 1t. There are
several German trading companies.
rights. mainly in fishing and timber.
One Of the twenty-nine concessions is
for the expectation of sausage cas-
ings. another Is for seed raising:
Compared VITA what might have
been expected, the list is miserably
and surprisingly poor. What are the
causes? They are twofold.
First, most of the men who are
running Russia today are not busi-
ness men and do not know how to
like Kamenev and Krassin, but they
are few. The government relies on
experts.
Great firms send their representa-
find themselves held UP at every point
by all kind Of delays. Business is
wrapped in red tape. There are many
departments to be consulted. and
each has some fresh provision to
make. "A business man, after long
negotiations. will settle basis of
agreement. When the contract Is
presented to him he will find fresh
clauses introduced that entirely alter
the transaction. Politics plays its
part. The most notable example of
this is the wreck of the big Urquhart
negotiations. caused by resentment
among the commiSSarS against some
lire Of policy Great Britain had adopt
ed.
=, Test Capitals Conscience.
More than one foreign visitor has
tried recently to convince the commun-
list leaders that If they hope for fresh
foreign capital to come in they must
ness men whose enterprises were de-
stroyed or appropriated during the revo-
luton. At first the bolshevists laughed
at this. "Show the money bags a
chance to make more money and ne VIII VII
care nothing about who suffered In the
past" they said. Capital has no con-
sciene." But gradually they are realiz-
ing that capital will not always jump Tor
an immediate profit. The question of
compensation for old foreign investors
is more and more coming within the
field Of practical politics. Krassin
openly advocated it before the last con-
ference Of the Russian communist party.
The Russian government Is going to
be more and more a buyer of foreign
manufa ctures. The good harvest this
year will give ii funds, and these funds
will be spent largely ON machinery and
equipment.
One point that has made foreigners
hesitate to come in has been that
part OF the civil code which, accord
ing to some interpretations. gives
the state power to cancel any con-
tract which it finds not In its inter-
est. I doubt how far the code gives
this power Here are the two clauses
to which main objection is taken:
Art. 80. Transactions against the
law or in infringement of the law are
invalid, as we'll as transactions def
nitely obnoxious to the state.
Art. 33. When a person under ex-
treme need enters into an unprofit-
able agreement the court Is entitled,
upon the request Of the plaintiff or of
respective state and social organiza-
tions. to declare the transaction in
valid or to cancel it's future validity.
Russian trade is going to revive.
Russian natural wealth will be more
and more developed. One-seventh of
the earth's surface cannot long re-
main fallow: 13O.000.000 people can
not forever keep or be kept outside
the world market.