Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-02
AMTORG HEAD SEES
SOVIET TRADE CUT
Declares 'BaseIess' Charges
Will Result in Reduction of
Exports to Russia.
Ry the Associated Press.

WILLIAMSTOWN, Mass, August 2
Continued circulation of "baseless
charges against the Amtorg Trading
Corporation and of unsatisfactory
financing of Soviet trade operations In
America will result in reduction OF
Soviet purchases in this country, which
amounted to more than $70,000,0OO
during the first three-quarters OF the
current year. Peter A. Bogdanov, chair
man of Amtorg Trading Corporation,
said today.
Mr. Bogdanov, whose organization
was recently the subject of investiga-
ton by House committee on charges
of smuggling and spreading Communist
propaganda In the United States, ad-
dressed the Russian Conference of the
Institute of Politics.
Speaking in hating English. he char
scterized as absurd the charges of
Cmmunistic propaganda activities made
against the Amtorg Trading Corpora
ton by Grover Whalen, former police
commissioner of New York, and Mat
thew Vol, vice president of the Amert-
can Federation of Labor.
Trade Grown Steadily.
Our trade with the United States
has been characterized by steady in
crease" he said. However, the basic
conditions for the increase of our pur-
chases in this country are the expan-
sion of credits by firms and banks and
the increase of the Soviet exports to the
United States. American banks on the
whole have been backward in the long
term financing of purchases for the
Soviet Union. The Soviet Union ex-
poets credits in such amounts and upon
European countries, which are far
more favorable than those granted In
the United States
Another important factor in the con-
traction Of credits and financial facili-
ties created by the many baseless rumors
regarding economic conditions In the
Soviet Union and the recent unwarrant-
ed attacks on the Amtorg. 1t is hardly
necessary for me to take up any OF your
time to point out the absurdity of the
accusations made by Messrs. Whalen.
VOL and others. However, there is no
question that the very fact that the
charges have received wide circulation
has had an effect in creating an I'M
healthy atmosphere for our work here.
IF the financing conditions continue
to be unsatisfactory, and If baseless
charges against the Amtorg are per-
nitted to gain wide circulation, Soviet
purchases will necessarily be forced to
change their program with view to re-
ducing their purchases in this country"
BIames Misinformation.
Recent charges of dumping" of prod
ucts by indentured labor in America by
the Soviet Union were based on mlsln-
formation, Mr.. Bogdanob declared. So
Wet imports into the United States, he
said, consisted almost entirely OF prod
ucts either not produced here or pro-
duced in insufficient quantities or OF
variety or quality which cannot be sup
plied by domestic producers.
Paul D. Cravath, New York lawyer,
discussing the problem of recognition OF
the Soviet Union by the United States,
said that refuSals had been based on
unwillingness of the Soviet government
to give satisfactory assurance regarding
several questions. including cessation OF
subversive activities directed by the So
Wet government against our institutions.
Declaring that the question presented
q troublesome complication" Mr.. Cra-
vath expressed his doubt of subversive
activities in this country by the Amtorg
Trading Corporation on the ground
that Amtorg and Moscow officials are
too clever to imperil their position by
engaging in such activities" On the
other hand, he declared, the Com
munist party and the Third Interna-
tionale have been engaged in active So
cialistic propaganda in this country
and America finds it hard to accept
the distinction that Soviet spokesman
draw between the Soviet government
on one hand and the Communist party
and the Third Internationale on the
other.
THE fundamental difficulty that
stands in the way of our government
recognizing the Soviet government is
widespread, deep seated and earnest
distrust of the Soviet government and
its doctrines by all classes that make
the dominant public opinion Of the
country. This distrust is even more
rampant in the circles of organized
labor than in capitalistic circles. The
most fervent spokesman in support of
the policy of non-recognition are found
among the leaders of organized labor.
A recognition unsupported by public
opinion would not achieve its results"
Mr.. Cravath declared.