Evening star., 1924-07-17

leaving. American fur merchants
send their agents to Vladivostok to
'uy. japanese companies have done
vel in the fishing industry on the
Pacific coast Mr.. Sinclair hopes to
do well in northern Sakhalien after
tire Japanese have, evacuated the
place, and two or three others hope
the same. The Hudson Bay Com
pany had a contract for a monopoly
IN northeast Siberia. but lost it re-
Gently. The big Seattle house of
Swanson was invited to Moscow to
discuss taking it over. One Of the
firm was in Moscow this spring, but
apparently without result.
Now, this is a pretty poor list for
d land half again as large as Europe.
How poor it is can be best Judged by
comparing il with single city
Harhin, just outside Siberia, where
trade is freely allowed. In Harbin
between forty and fifty American and
manufacturing and shippiEg-have
branch offices. They include such
well known concerns as Standard OIL.
the international Eauking Corpora
ton and International Harvester. All
Of these, 1t is safe to say. would re-
conditions permit.
EusSia's Terms Impossible.
What is the difficulty? The only
difficulty lies in the policy Of the
Russian Government. 1t places
such restrictions around the grant
ing of any trade monopoly and
takes so long in coming to it's de-
cisiors that most foreign capitalists
abandon their quest in despair.
They are the lucky men. The un.,
lucky go farther. Then their real
troubles begin.
1t is impossible for a firm to estab-
lish itself in Siberia by simply going
there and opening offices. First, a
government LICENSE has to be obtain =
ed and if the business is of any mag
rjtude, q concession. All concessions
are granted in Moscow and as rule
it takes about a year to obtain one.
The soviet authorities are dread
fully frightened lest some foreigner
puts one over" on them. In the pa ST
small mon looking for quick profit
, nave PLAYED some bad tricks on the
| ineXpe~t bolSheviSt officials.
50 they take such precautions that
they defeat their own end. The terms
Of any concession are most strictly
defined. Any breach of the terms in
voiyeS. as rule, the forfeiture of
everything. Russia does not wish to
give permanent conct ssions. At the
most a foreigner is likely to b" per
n;itted to develop an industry for,
say, fifteen years, and then must turn
it back to the government.
No firm can export or import goods
except by special license from the
Foreign Trade Department. 1t is
almost impossible to obtain import
licenses, for the government is cut
ting imports to q minimum in order
to conserve the national wealth.
"aIixed" Companies Demanded.
This method of licenses is very
complica ated. Here is an example: In
the old days the expectation of Slbe-
r!an game was very profitable. Dur
ing the fighting the trade died. Not
long ago a Siberian went to British
exporter at Vladvostok and offered
600 birds for sale. He could follow
with other consiSnments. The Eng
liShman agreed to buy. 1t was nee
essary first, however. to- obtain the
permission of the Foreign Trade De-
partment.
Form a mixed company with us
said the officials. You cannot deal
directly"
The birds are not yet exported.
This mixed company" plan is now
The favorite government method for
conceSSionnaireS. 1t is, l am con-
viuced bad method.
Generally speaking = The details
differ in all caseS-uuder mixed
company" concession the foreigner
provides the necessary capital and
the shares are divided between the