Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-06
SOVIET DEBT OFFER
IS STUDIED IN j. S.
Chance of Getting $780,
600, 900 May Be Shown by
London Farley Shortly.
BY WILLIAM RUFUS SCOTT.

Stains conditional offer to negotiate
payment of more than s700,000,OO0, !
owed by Soviet Russia to the United
States Government and to American |
citizens for debts of the czarist govern |
nnent of Russia and for property con- |
hscated by the Communist regime, will |
be measured largely in Washington by
the concessions made to England in
negotiations about to open in London.
Great Britain has much more at
stake, for its claims against Soviet |
Russia total $5,250,000, 900, of which !
&4,5000 100000 is the czarist debt and
e750,0000 900 private claims of English |
men who held Russian securities re-
Gated In Russia after the 1917 revolu- |
ton when the Communists gained |
power.
France likewise has a huge claim !
against Soviet Russia, and other nations
in smaller sums. The international
claims against Moscow are so large that
their settlement would constitute the
greatest financial transaction since the
war with the exception of the allied
war debts to the United States. and the
Young and Dawes plan settlements be-
tween the allies and Germany.
Offer Cautiously Made.
Stain was cautious in his offer last
week, made in the course of a speech
to the Communist Congress in Moscow
1t seems that he had chiefly in mind
paying the commercial claims, or the
claims of private citizens, but it Is
expected that England will bring up
the government debt as we'll, or the
money loaned by England to the cars
government before the World War and
for the period of the war that Russia
remained on the side of the allies.
The TTnita6 States lOoned about cam
100000 to the Cars government some
OF which, however, Is accumulated in
terest on the original loan. Somewhat
more than S400.000,000 represents Sc
curities of Russia owned by American
citizens and property owned by them
which was nationalized by the Soviet
The ENJOYS of Moscow at the forth
coming London conference are expected
to put forward counter claims that will
Offset or exceed the claims of England
and its citizens. AS far as the govern
mental debt goes the Soviet representa-
tives likely will renew their contention
that England, and the allies, owe Rus
STA billions of dollars because of the al
lied and American Intervention in Rus
STA in 1918 and 1919, and in Siberia for
longer period The Americans with
drew from this venture sooner than did
England.
Method Of Payment.
As for the private claims the PROPOSE
ton Stain made tentatively called for a
roundabout method of payment by So
Wet Russia. He indicated one method.
namely, that any claims allowed would
be paid as additional interest on new
loans to be made to the Soviet. That is
to say, If an American concern sells the
Soviet machinery or other goods. or
makes loan. the payment by Russia
will be the ordinary interest, or price,
81
liquidation of old claims for seized
property.
Some British claimants are said to be
willing to take compromise settlement
or less than the face value of their
claims. This is due to a feeling, it is
stated, that half loaf is better than
none. Whatever the terms, If any,
reached at the London conference, the
Washington claims If negotiated later,
would rest on their own merits, though
the precedent set in London might have
weight.
Recognition Issue Enters.
England has diplomatic relations with
the Soviet, and negotiations are pro-
ceeding normally. The Macdonald gov
eminent is said to hope for the achieve
nent Of settlement to add to it's pres
tlge. The United States, without diplo-
matte relations with the Soviet, would
have to establish some kind of modus
vivendi for any negotiations that here
after may be undertaken.
In the meantime Washington is not
Ing decided slump in trade with the
Soviet. England and Europe are gain
ing In that trade. Failure of American
hrns to be as liberal in credits as the
overseas competitors is said to account
Tor the decline. An inclination by Mos
COW to emphasize its displeasure with
the United States position of aloofness
also may be a factor.