Evening star. [volume] (Washington, D.C.) 1854-1972, 1928-09-16
Concessions in Future to Be
for Longer Term of
Years.
SOVIET LOOKS TO u. S.
FOR BIG INVESTMENTS
Delegations Abroad Strengthened
Bars Will Be Let Down on
Technical Experts.
By the Associated Press.

MOSCOW, September 15-An ur-
gent need of capital from abroad has
compelled Soviet Russia to take one
more step back toward the economic
system of other lands, abandoned here
by the revolution Of 1917.
Such is the Interpretation many OBJ
servers have placed on the announce
ment last night that the policy of
granting concessions to foreigners in in
dustry, agriculture and commerce Is to
be brOadened in order to encourage the
greatest possible investment of external
capital
Some even predict that the Soviet
will take further steps to encourage
foreign capital.
Some Of these, mostly friends OF the
new government, say that last nights
welcome" to capitalists was not In
their view so much sign that the
Soviet rulers have failed in their eco
nomic endeavors as that they have Sue
ceded at least to the point where In
dustry needs expansion. 1t cannot ex-
pand without capital and the announce
ment of last night is admission py
Soviet Russia that she needs that from
abroad.
Need Technical Advice.
Russian industries need for, their ex-
ploitation technical advice and help, as
well as money Consequently the oring-
ing of foreign engineers into the COM
try is also to be made easier. Conces-
sions in the future are to open more
fields than in the past ard propapiy
will be granted for longer term OF
wears than has been customary since
the adoption of the new economic
nolicy and abandonment OF mliltant
communism in 1921.
The United States. which is second
tn German in the number OF ltS Ior-
eien concessions, is the country 10 wnlcn
the Soviet government looks for large
part of the capital which Is expecteo 70
dow into Russia.
ing the automobile noustry III t.s
I1c;ted states with power to negotiate
Establishment of plants in Russia with
American capital. Another delegation
left last week to study various indus
tries. particularly building construction.
other such commissions are like TO
leave this Fall and Winter for the
United States.
Bolster Delegations.
In the same connection there have
been moves by the Soviet recently TO
strengthen such delegations as tney
have in various countries. Thus today
it was reported that A. Scheinman,
chairman of the Soviet State Bank
("Gosbank"), has been named to head
the "Antorg," RusSia'S trade ONCE In
New York.
At the moment there are 81 foreign
concessions in Russia, fewer than IN
1926. From now on the number is ex-
pected to grow. The Soviet first offered
concessions to foreigners in 1921, after
three years of unaided state commun-
istic management had failed to achieve
satisfactory results. :,
The first conceSsionaires complained
of a multiplicity of taxes and handi-
caps placed in their way when they
endeavored to export their profits. This
has been gradually changed and for
eignerS are now permitted to SEND their
earnings 0ack nome. FuCuTe CouCco-
sionaires are promised in last nights
announcement that tax paying Will be
simplif1ed.
Restrictions to Go.
This is indication enough, observers
say, that the policy of restricting most
concessions to two and three years will
be abandoned and that capital will be
encouraged to come into Russia at least
on a semi-permanent basis. 1t is un-
derstood that every effort will be made
by the government to eliminate the
difficulties the early concessionaires ex-
perienced with labor which was hired
by contract with the trade unions.
OF 81 concessions in Russia now "a
are for manufacturing, 28 for techni-
cal assistance, 16 for mining, for
trading and for timber. Germany
leads with 81 concessions; next Is the
United States with IA; England, 10;
Japan, Z; France, 6, and others scat
tered.
The net profits of the 81 concessions
In the fiscal year of 1926-27 totaled
SO 900 900 on invested capital of $780,
OO0 according to the chief of the con-
cessions commission, who declared that
| the profits of that one year were 85.5
per cent of the total investment.