Imperial Valley press., 1933-11-21
SOv|ETS AND
AMERICA MAY
CLEAN SLATE
Expect Agreement To Forget
Past And Start Anew Follow
ing Recognition.
CONFRONTED BY OBSTACLES
Cancellation Of Russian In
debtedness Might Create Dam
gerous Precedent.
By FREDERICK KUH
nited Press Staff COrresponden

United Press Staff Correspondent
Copyright, 1893, BY United Press
WASHINGTON, Nov. 81. A
Soviet american agreement which
would expunge the past and en-
able both countries to inaugurate
their renewed diplomatic relation
ship with a clean slate may be
reached Thursday.
Complete, final settlement of
Russia s debt to the United States,
American private claims against
the Soviets for confiscated property
and Moscow S counter claims for
America IS 1918 military expedition
to Archangel, would be included in
the significant agreement if nego-
tiations Commissar Maxim Litvinov
is conducting Under high pressure
with the state and treasury de-
partments are successful.
Though not yet within reach,
this historic accord is in sight, the
United Press was reliably informed,
and both governments are hopeful
that the perplexing financial is
sues between them may be adjust
ed within a week of last Thursdays
resumption of diplomatic relations.
Litvinov and the American ne
gotiators, William Bullitt, ambas-
ador-dasignate, William Phillips,
under secretary of state, and Hen
ry Morgenthau, Jr., acting secretary
of the treasury, are making a de-
termined effort to come to terms
on the sole remaining obstacles of
the past which might impede Rus
so-American harmony.
The commissar intends to go to
New York Thursday noon to attend
a banquet at which Senator Borah
is to speak. Litvinov plans to sail
Saturday on the "Ile De France"
or "Conte Di Savoia,' probably the
former If few more days were
needed to perfect the accord on
debts and claims, the commissar
doubtless would postpone his de-
parture, but he is eager to return to
Europe and confer with the new
Soviet ambassador to the United
States, Alexander Troyanovsky. be-
fore the envoy proceeds to Wash
ington.
Trade Agreement Delayed
That Litvinov decided to remain
in this country for at least a week
after President Roosevelt's depart
ure from Washington was due en-
tirely to the project of crowning
recognition with a financial settle
ment. Discussion of trade and
credits has been wholly subordinat-
ed to the debts and claims negoti-
ations.
United Press inquiries in high
administration quarters revealed
that Litvinov and the United States
government are evolving a confer
ence formula, by which they pro-
pose to untangle the Soviet-Amer-
lean debts-and-claimS knot within
two or three days.
Discovery of this formula has
been the only grave difficulty hith-
erto encountered during Litvinov's
mission. Curtly summarized, the
puzzle to be solved is as follows:
If Moscow agrees to repay the
S187, $50 Kerensky debt to the
American government, it may estab
lish a precedent which would en-
able France, Britain, Germany and
other countries to lodge claims for
$4,000, 100000 against the Soviets
for Russian war and pre-war debts,
municipal and railway loans. On
the ether hand. we're the United
States to cancel the KerenSky debt
and American private claims in re-
turn for Soviet remuneration of
damages for American intervention
in Archangel, Washington would
jeopardize, if not forfeit, legal and
moral title to the 100000 allied
war debts