Evening star., 1933-11-12
Recognition for Russia?

cash. other nations have extended
credit. Germany, Italy and others
guarantee payment on certain pro-
portion of all exports to Russia, and
with this guaranty by the home gov
ernment the merchant is Wiling to
grant a larger credit on the remainder
than he otherwise would.
If the American Government will do
the same there is no doubt that trade
with Russia will grow enormously but
no one should fool himself into fsliev-
ing that the mere fact of recognition,
without some kind of credits. will have
any effect at all on the volume OF trade.
Exactly the same arguments wfe ad-
vanced in Sweden as to the connection
between trade and recognition, and
largely as the result of them the Swed-
ish government recognized the Soviet.
Substantial orders were placed before
recognition. After it was accorded there
were no more orders placed.
in this connection, although it has
nothing to do with recognition, it is
we'll to remember that a nation nor
mally buys where it sells. if it can
there obtain what it needs at reasonable
prices. Russia supports itself largely
on the export of agricultural goods. of
/ VII anu CtlldIil Ll1t 1ooo We
need the second we do not need and
the first We keep out by hook or by
crook. Our farmers have their own
problems
On the question of recognition Of the
/ Soviet government the stand of the
/ American Government has been con-
sistent, defensible and generally sup
ported by the American people.
In the days when trade flourished
/ because Russia could make at least part
payments in cash and demanded only
short credits for the balance, it was
supported by business generally, which
1 was satisfied with results and believed,
/ probably correctly. that an immense
/ diplomatic mission would complicate
negotiations. 1t has been applauded
/ by all patriotic societies and by the
American Legion.
People Should Have Say.
/ More than ever before the question
/ is once more TO the front. primarily, Of
course, because of the argument that
recognition will increase sales. If it
is the purpose of the American Govern
ment to finance sales, it must, of ne
cessity, recognize the Soviet govern
ment You do not lend money to a
man to whom you refuse to speak. On
the other hand, if there is to be
question of credits the American peo-
pie should have a say in the matter
1t is true that the credits would be
indirect, since the Executive cannot
lend money TO foreign country with
out the authority Of Congress.
Whether direct or indirect. however,
| the principle is the same. Our expe-
rience up to now has not been any too
hor urith rpOard n nupd h{
other governments to this Government,
and we should not forget that the Rus
sian government has already repudiat-
ed one debt. Those who believe that
it is only right and just to recognize the
government of Russia have strong
case. but they are not the men who are
influencing the Government in favor of
recognition. 1t is the men who want to
sell From their point of view recog
milton will be useless without credits.
Unless the American Government,
therefore, intends to finance large sales
to Russia recognition would be useless
from the practical point of view If it
will finance large sales there will un-
doubtedly be a temporary speeding up
in certain lines of business. A little
later, however, will come the familiar
plant that Russia cannot repay or at
least cannot buy any more unless
America will take Russian goods in
large amounts. 1t is hard to see the
United States opening its doors to
flow Of competitive farm products.
Conditions Increase Danger
The argument most persistently ad-
vanced by opponents of recognition
that our national institutions would be
jeopardized through the intensive prop
aganda following the resumption of
supposedly normal relationships not
been stressed, because. except for the
| fact that it is contrary to international
practice, it is solely a matter for us
to deal with at home. There has not
in the past been any real reason for
fearing this propaganda. American
labor has been conservative and the
average workman has not been inter-
ested in communism, although there
has always been some danger, due to
the fact that American labor is not
homogeneous, but has a large proper
ton of comparatively new immigrants.
1t cannot be denied that the danger to-
day is somewhat greater as result of
the general unrest.
The question OF recognition of a
foreign government lies in the hands
of the Executive but it Is the business
{ va tiiN NAAtiV EAAilCAiNGii HCOPAC W Weigh
the pros and cons. The technical argu-
ments in favor OF recognition today may
well outweigh those against, and if
there is TO be recognition it can
only honestly be for these technical
reasons. 1t will not materially affect
trade without vast credits, and there
should be no illusion on this point. AS
to credits, this is very much a matter
for the consideration of the taxpaying
American public. Do we want to con-
tract new inter governmental debts?
The Government is already making
loans at home which few. even of the
most optimistic, think can or will be
repaid. Is the possible temporary ad-
vantage to some businesses sufficient 10
outweigh the almost certain future COM