Evening star., 1933-11-12
BOTH SIDES PLEASED.
Officiais Continue to Lay Groundwork
for Recognition.

for Recognition.
BY the Associated Press.
Pleased with the trend thus far, State
Department officials and Maxim Lit
vinoff, the Soviet's foremost diplomat.
yesterday continued their methodical
work OF building q foundation on which
TO establish Russian recognition.
Inc meeting arranged for the after
noon in the Office of Undersecretarv
Philips was the fourth at which the
Soviet foreign minister and State De-
partment officials have reviewed the
questions on which there must be an
understanding before restoration of din
lomatic relations.
LiCvlnon spent most Of the day rest
ing at the home of Boris Skvirsky. head
OF the Soviet Union Information Ru-
reau, who is his host.
AT a three-hour White House confer
ence Friday night there was a frank
interchange of views between the Presi-
dent and Litvinof.
Inc conversations at the State De-
partment have embraced debts. nrona-
ganda and trade relations.
iraoe relations embrace q wide field
ana nave many ramifcations. The fact
Hussla purchased goods worth s1I4-
UOo,OOO In 1880 has been cited as proof
tnat recognition is not necessary for
commercial relations.
but In 1882, Soviet purchases amount
eo 10 only $l2,640 ,891 and Soviet rep
LesenCatiVes said good part Of the
decline had been because of the Iacl of
official relations.
Even before President Roosevelt in
vited Litvinoff to the Capital, negotia-
tlons involving Russian purchases had
peen going on for several months. An
parently, these have been suspended
until the outcome of the Soviet COM
missar's visit Is known Russian rep
resentatives assert that a prime reason
for the drop In Soviet purchases is the
fact that other countries extend longer
credit and provide in some cases a yir-
tual guarantee to their citizens that
Russia will pay for goods bought on
time.
Charges that the Soviet Union has
dumped such goods as lumber man
ganese, asbestos and safety matches
in this country, or that they were pro-
duced by forced labor, has been another
factor which has made trade relations
d1ncult. In turn the Soviet has charged
that Treasury restrictions on gold have
hampered business dealings with Amer
lea.
1t was regarded as extremely unlikely
there would be a serious attempt to
make an adjustment of debt claims be-
fore recognition had been decided upon.
although it was possible that a basis
for future negotiations might be
reached
AS late as 1929, Litvinoff said:
The Soviet government has con-
sistently held and still holds that the
absolutely indispensable prerequisite for
the regulation of any disputed question
whatsoever between the Soviet Union
and other governments is the preltui-
nary restoration of normal diplomatic
relations between them"
American cAims against the Soviet.
both governmental and private. are
estimated at between $500, ,0OO. 900 and
S700, 100000. The Soviet has counter
claims growing out of American expe-
ditions to Archangel and Siberia In
1918.
Litvinoff's time for a future meeting
with the President was indefinite late
yesterday. Henry Morgenthau, jr.. gov
ernor of the Farm Administration. has
invited the visitor to be his guest at a
small private party tonight.