Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-09-19
SOVIET DEBT PAYMENT
HINTS RAISE PROBLEMS
Officials Puzzled to Find Means Of Ac-
cepting Overtures From Unrecos-
nized Russian Government.

tracts were settled by payment. can
collation. and other means without
loss to American contractors.
This settlement" according To
Secretary Mellon. II should say may
we'll be regarded as noteworthy
achievement i'm view or the extent OF
the liabilities involved in such con-
tracts and the comparatively limited
amount of cash available here IN
the Russian government for use In
respect thereto. Total dishurse-
ments ont Of the liquida ton account
were about $4,000 600.
This liquidation account az such
was closed out March 4. 1921. and
the balance Of s70.496.34 was paid 10
this Government on account Ut In
terest on the Russian debt. It was
further agreed at the tine Of clos
ing out the account. however. that
sums which might still accrue to the
Russians, here. from the remaining
business Of liquidation should like
wise be turned over to the American
Treasury. Such sums to the az
gregate amount of $337.766.73 have
actually been paid since that time.
and nave been applied on interest.
The funds. 1t is understood here.
were realized chiefly from further
sales of the Russian governments
property.
The kind of bills in this country
met by the liquidat ton account In
cluded those for supplies. Transport
tation. storage. inspection. interest
on loans made ny the Government
and on private loans hoated in this
country. salaries and upkeep of the
Russian embassy here. and con-
sulates and other Russian institn-
tions in the United States and other
miscellaneous accounts.
S264,676,71O Still Due.
In addition. however. to the oriTi-
nal cash advances to the provision
al government Of Russia. the United
States. through Herbert Hoover. made
advances in the form Of food and
surplus supplies on credit for relief
work. These totaled $406.0S2.30.
and were extended under a special
act of Congress in 1918. concerning
sale Of supplies. This sum has been
added to the original total cash ad-
vances of more than S1s7.000.00O to
make a total principal Indebtedness
of s192,601. 297.37. Accrued interest
amounts to more than $72.O0O,OOO,
thus bringing the total debt OF Rus
STA. according to the latest Treasury
statement. as of July ]. of this year.
up to the figure Of $264.67s.710.0h.
There has been paid In one form or
another total interest of S7.952.53o.53 3.
Thus stands the obligation In dol
lars and cents between the United
States and Russia. hut the question Of
international relations between these
two powers today is far more serious
| than the sole matter Of the unpaid
debit and involves principles which,
according to President Coolidge and
| his Secretary OF State, still stand in
| the way.
There would seem to he at this
| time no reason for negotia TONS. aid
the Secretary Of state In a statement
in December. 1928 the most recent
formal presentation Of the Govern
ment's policy. He was answering by
public statement a cable overture
from Tchitcherin, at Moscow. THE
American Government" continued
the Secretary, "as the President said
In his message to Congress. is not
proposing to barter away its princi-
pies. If the Soviet authorities are
ready to restore the confiscated prop
erty of American citizens or make
effective compensation, they can do so.
If the Soviet authorities are ready to
repeal their decree repudiating Rus
STA s obligations to this country and
appropriately recognize them. they
can do so. II requires no conference
or negotiations to accomplish these
results. which ran and should be
| achieved at Moscow as evidence Of
good faith.
Propaganda Il Scored.
"The American Government has not
incurred liabilities TO Russia or repu-
dated obligations. Most serious Is the
continued propa ga nda to overthrow
the institutions of this country. This
Government can enter into no nego-
tiations until these efforts directed
from Moscow are aha ndoned.'
But II ia known that the admins
tration has been keenly interested IN
the advices coming out of Moscow
that the Soviet might open negotia-
tions on their debt. AT the same time,
| in view of the clearly defined position
against recognition. the involved prob
lem presents itself as TO how any ne
gotiations might be handled.
The American Debt Commission. for
instance. was formed for the business
of dealing direct with representatives
of foreign debtors. but its authority
apparently does not extend beyond the
pale of those powers which are duly
recognized.
Total of 11.461 ,ss4.s77 Settled.
So far the American Debt Com
| mission has succeeded In signing
agreements for funding Of $11.4S1.-
| 694,97719, out of the total Of SILL
| 1872 $50 916.03 owed by foreign powers.
| The French agreement. however, in
volving more than $4,000. 900 900. has
not yet been ratified by either the
American Senate or French Parlta-
ment, although it has received the
approval of the House of Representa-
tives here.
The Russian debt Is ny far the
| largest of those remaining tn he re-
! funded. Austria. which owes sal
! 994.092.s9. has received from Con-
gress a o0-year moratorium. Armenia
does not exist as a. nation. Greece
owes s1s.375.oo0 and Nicaragua sal
| s82a9.
out of the complicated situation
between Russia and the United
States there remains, however. one
in the State Department diplomatic
blue book under the single word
Russia His title is given as
Financial Attache." and his once
address 247 Park avenue. New York.
! 1t was Mr. Ughet who negotiated
| the loans on food supplies which
| went TO South Russia for relief. II Is
Mr.. Ughet on whose shoulders rest
the practical business of caring for
Russian interests In the United
| States. He is the custodian of the
! Russian Embassy Building, which Is
| without an ambassador
Should Russia he I'm earnest about
paying her debt to the United States,
/ there seems 10 exist an earnest hope
| that in some fashion means may
be found to get together over the
| broad chasm which now separates