Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-07-17
BRITISH SEEK TO BREAK
, RUSSIA in TRADE FIGHT
London Moves to Restrict Soviet's
Commerce, Eventually Compelling
Reds to Accept Terms.

kowitz. which is owned by Roth.
schild. This firm is prepared to con-
tinue selling to Russia on ten-year
credit basis.
| Arrangements have been made
whereby American cotton now will
be imported to Russia through Ham,
burg instead of Liverpool. Moreover
| it is stated that certain British
banks, notably the Japhet Co. still
are rediscounting bills; that the Bank
of England, through the Austrian
| Laender Banker. is ready to do bust
ness, as is the Austrian Kredit
| Anstalt. and that numerous credit
| leaks" from England are being found.
The Germans, however. seem more
careful because. according to one
| bank director, of the fear of losing
the American loan market If they
give further credits to Russia.
Nevertheless. Russia is suffering.
The internal political situation is
unsatisfactory and money is short.
Salaries of employees in commercial
departments in Berlin have been cut so
that they receive no more than SIS
at time.
On the other hand, it must be re-
membered that the Russian import
program is regulated ahead for the
entire year and that this is the last
quarter in which imports can be re-
duced without shortage. Also it
is fact that the Russian govern
ment. through its agents in Berlin.
is buying up Its bills at an IS per
cent discount by paying cash.
Debts Favored i'm Russia.
Certain Russians declare their gov,
eminent is in a situation to pay cash
for at least year. although the
Russian government itself desires as
large outstanding debts as possible
in order to influence foreign govern
ments against a break with Russia.
A great unknown element is the
United States. Were the Americans
to boycott the Russians, Russia would
lose; but the vacuum oil concession
does not point to such boycott. Ger
tain outstanding American business
men who went from Stockholm to
Moscow seem to be showing an in
creased interest in Russian trade.
However, there is mystery. At
the beginning of June there was held
in Berlin a Russian-American secret
meeting, the Importance of which can
best be judged by the number and
eminence of the persons attending it.
among the IluSSldHS were 1CulCitCLll
and Rakovsky; Chlablankin, president
of the Russian naphtha trust; former
Ambassador Rosengoltz from London
and other important commercial lead
ers The names of the three Ameri-
cans were kept secret, but the writer
is informed that one was a represen
tative of Dillon, Read & Co.
At this meeting it is rumored that
a. vast industrial credit amounting to
over .$100,000.000 was discussed. 1t
is presumed that the entire situation
created by the English break in re-
lations was discussed. The Ameri-
cans showed no desire to emulate the
British. but rather to supersede them.
Should Americans really increase
their business with Russia, it would
seem that the British offensive must
fail. Already there are signs that
some British firms are anxious to keep
open all lines leading to Russia in
case Of restored traffic, but as the
prestige and power of Great Britain
are immense, any prophecy is foolish. |
Meanwhile, it would seem that the |
only certain loser is Germany, al |
though German business men seem
to hope and believe in British |
victory. 4 +@
fCopyrght 1877