Evening star., 1932-11-30
SEEK RECOGNITION
OF SOVIET BY u. S.
hdustrialists and Exporters
Gather Data to Place
Before Roosevelt.
NJ CONSTANTINE BROWN.


while the state Department reiter-
sted yesterday that Its policy toward
recognition Of the Soviet government
has not changed, data are being gath
cred by industrialists and exporters to
be put before Gov. Roosevelt in the
hope that the present policy Of nom
recognition will be changed soon after
Mr.. Roosevelt is inaugurated President.
The figures speak for themselves.
Trade between this country and Soviet
Russia between the years 1925-1931
gave balance Of trade in favor Of the
United states of about $480 1000, 900.
The total trade OF 1880 reached the
peak of $3.50, ,0O0, 900 of which pur-
chases Of the Soviet in the United
states amounted to 100000 900 and
Russian exports into this country
amounted TO $40, 200 ,000 In 1881 the
trade fell to about s100, ,000, 900 and the
slump was noticeable only during the
last few months of the year. after the
Hamilton Fish congressional investiga-
tion in the Summer. IT Is explained
that while there was no sentimental
reason for the fall in trade, the Amer
lean importers became shy about Rus
alan goods on account of the uncer-
tainty as to whether Russian goods
would be accepted into the United
states on account of the charges OF
forced labor and dumping. Further
more. on account Of trade agreement
the importers did not know what duties
would be charged on Russian products.
Volume Falls In 1882.
Because OF this uncertainty and also
because Of the depression, the trace
during the first nine months of 1882
fell to SIG, 900, 900. Of which $4,000, 600
represented exports to Russia and S.
D00. 600 imports from the Soviets. In
the memorandum which is being pre-
pared ut present by those who favor
resumption Of normal relations with
the Russian government, 1t In pointed
out that the lack OF recognition renders
extremely dificult trade with the
Soviets, at o time when American busi-
ness finds It necessary to extend i'm
portant credits to oil would-be pur-
chasers, The credit situation OF the
Soviets Ia described as almost ridiculous.
The ONCE of assay refuses to accept
Russian gold because, on account OF
the lack of official relations, any for
eign nation may claim 1t as its own.
Some time ago France did claim o GER
tain amount of gold deposited by Rus
sia in the United States; an intricate
and protracted law suit followed and
the Soviets won, but the ONCE of assay
does not want to be entangled in such
proceeding Consequently, the Rus
SLAMS cannot make gold deposits to
finance their purchases here. On the
other hand, the Federal Reserve bank,
also on account Of the absence Of nor
NAL relations between the two coun-
tries, cannot accept Russian notes
Thus Russia Is forced today, when cash
payments are difhcult, to finance tts
purchases with dollar drafts on foreign
banks.
In certain cases. the manufacturers
accept the Russian notes. but their nt-
uatton II that they either must hold
sequently cannot give the Eoviets the
must sell them TO New York bootleg
agencies" which charge an average Of
35 per cent for the redisccunt OF those
notes.
! nut this lack Of recognition works
mnrs seriously TO the detrtment OF the
American exports. Last year, during
the month Of July, the Soviet govern
ment needed several hundred thou
sand bales Of cotton and wanted TO
purchAss 1t from the Farm Board. The
board. however. ras compelled to refuse
TO negotiate With the Soviets because It
could not eStsnd the necessary credits
which the Russian government de-
manded. Yet the Russians have never
defaulted on the long-term credits
granted them In this country by those
mdustrialists who could afford to keep
the Soviet notes In their safes. Thus,
according to statement issued by the
Amtorg Trading Corporation on No
vember is, this offcial agency Of the
Soviet government made between No
vember and November IS payments
totaling $9,600,000 to American agri-
cultural equipment concerns for ma
chinery purchased in this country in
1929, 1880 and 1891. But not all
American firms are in q position to ex-
tend long-terms credits to purchasers
and the lack of official recomition
makes 1t impossible for them to redis-
count the bills which otherwise would
be accepted by the Federal Reserve
bank