Evening star., 1933-11-07

Once the questions Of the old Rus
sian debt, amounting only to $178,'
600, 900: the confiscated American
property in Russia and definite Rus
sian pledge that none of its citizens
will be permitted to engage in politica
propaganda in the United States, 1
settled-and there is not the slightes
doubt in official quarters that these
questions will be settled within a few
days-the President and Litvinov viii
sit down and discuss the really i'm.
portant questions, which are divided
into two groups. One Is the economic
question of trade and the other one 1:
the political question Of cooperation Il
avoid possible wars on the thresholds
of both countries.
Long Discussion Seen.
The economic agreement undoubtedly
will require long and complicated dis
cussion. Basically, the situation is that
the United States has large surplus oI
raw materials and manufactured good,
which it desires to dispose of In for
eign market
Russia, on the other hand, is in great
need of most of this countryis overpro-
duction and is capable of absorbing q
good deal of it. provided the necessary
credits are extended to her. In heI
present condition she cannot afford tc
pay cash for anything.
1t is reliably stated that Russia could
purchase in this country goods worth
almost 100000 900, but her willing
ness to place large orders depends on
the length of the credit which the
American producers are willing to ex-
tend to her.
1t was authoritatively stated that If
a credit system extending over a period
of 10 to Is years could be arranged the
SovietS could place most of their orders
in the United States. Students of the
Russian situation have reported to the
State Department that Russia actually
needs 81 ,000, 100000 worth of industrial
and agricultural products.
The Soviets have immense natural
resources and under normal conditions
they could easily repay, over a long
period, their obligations to this country
Debt Not Considered Large.
Russia's foreign debt, incurred since
the coming into power of the present
administration, is not large and car
easily be taken care of by careful
management
At present the total debt of the Soviet
government for goods purchased abroad
amounts to about $500, 100000.
Their chief creditor is Germany, with
about $22o,o00, 900. Great Britain
comes next, with about $4,000, 900
France, Italy, Holland and Sweden
come next with much smaller amounts
Their German debt must be liquidateo
between now and 1887. The other
debts are payable within the next Il
months.
To meet these obligations Russia
banks on two sources-their exports
and the production of gold.
Since Russia pays for her imports ir
bills of between nine months and five
years, she Is able to use her revenue
from exports to meet punctiliously hel
foreign obligations.
Thus the cash she receives during tn,
period of one year for her exported
products are devoted to pay for pas
imports Russian exports last yea,
amounted to close to $500, 900 900, whil'
during the three quarters of 1888 he
exports reached the sum of $l70, 900, 600
a substantial amount considering thi
world depression and the various handi
caps which all international trade hai
met during this year.
More Gold Expected.
The commissariat for economics II
Moscow hopes the last quarter Of thil
year viii find the export trade of Rus.
sia close to last years total.
The gold supply mined In the Sovie
republics reached last year the tota
of 5000, 900, but it Is anticipated i
will be somewhat increased this year
since better and more modern methods
are being rapidly adopted in the Rus
sian gold mines.
The Russian gold supply theoretical!
is used exclusively to increase the golt
reserves of the Russian National Banl
and to cover the Russian banknote
issued by that bank. In the past, how
ever, such gold was used by the Sovie
government in times of emergency II
pay foreign debts rather than default.
The trade negotiations are beini
watched carefully by our competitors IL
the foreign field. The Russians nat
urally do not expect to pay of theil
eventual Indebtedness to the United
States in cash. They expect to have
reciprocal trade and to send to tn.
United States some of their product'
which this country is purchasing nov
in other countries. On Americas will
ingness to accept these products de.
pends a good deal the amount of pur'
chase the Russians will make in thi
country.
Expect TO Give Long Terms.
Americas trump card in its desire t.
acquire most of the business of tn
Soviets is in the ability of the American
exporters to extend such long credit
as neither the British, Germans, Ital
ians or French can possibly afford.
In producing manufactured good
Great Britain, Germany, the other ma
tions which are trading with the Sow
lets. must purchase good deal Of thl
raw material abroad and pay for 1t il
gold or currency over period of 81
or 80 days.
The American producers, who hav,
most of the raw material within thl
country and can be supported by tn,
r. F. c., can easily afford to give such
credits as no other nation
But while, officially, the commercial
negotiations are being stressed as tn,
paramount matters to be discussed be
tween the President and Litvinov, it il
an open secret that the Russian
foreign commissar desires to take III
with the administration the question o
a cooperation for the maintenance o
peace.
Both to Avoid Trouble.
Neither Russia nor the United State
has the slightest intention of embarkinI
| in any political adventures which nigh
| lead to trouble. But Russia feels tina
her possessions in the Far East AM
especially the maritime provinces, ar
menaced by Japan's desire to establisl
ar adequate empire in the mainland o
Asia, and Valdivostok, the capital Q
| that province, seems today the chic
| aim of the japanese general staff.
Russia has made during the last tw
years adequate preparations to defen
! that province, and according to militar
experts it seems unlikely the Japanes
will try surprise attack; it is too lat
| for such a gesture.
But the Russians are as much dis
heartened as the American people b
| the failure of the Disarmament Confer