Evening star., 1933-11-19
Commercial and Political
PactS Held in Allegiance
Until Settlement.
SEVERAL WEEKS NEEDED
TO SOLVE COMPLICATIONS
Peace Mutual Goal-Trade Regard
ed as Second in Importance.
Entanglements to Be Stunned.
BY CONSTANTINE BROWN.

Negotiations for the settlement of
RuSsia's pre-war and war debts and the
claims Of American citizens whose prop
erty was confiscated in Russia began
yesterday between the Soviet commits
sar of foreign affairs, Maxim Ltvinoff,
and Ambassador William c. Bullitt.
They will be continued during the
whole Of the next week until Iitvinof
leaves Washington. The matters in
volved are lengthy and complicated and
nobody expects an early settlement. 1t
may take several weeks to reach final
tagreement. Until these matters are
out OF the way, there will be no Official
negotiations regarding the conclusion
of commercial and political agree
ment
This matter has been discussed by
the Government with the Soviet dele
gate IN Washington and it was agreed
that 1t shall be left in allegiance until
the more important things dating 16
years back are out of the way.
Commerce First.
1t is probable the political and COM
mercial agreements will be discussed by
Ambassador Bullitt in Moscow and by
the Russian Ambassador in Washing
ton as soon as the Soviet government
decides who will be sent to the United
States. Associated Press dispatches last
night indicated Alexander A. Trova-
novSky. former Ambassador to Japan,
would be named. Others mentioned as
possible appointees for the diplomatic
post were George Sokolnikov. former
Ambassador to Great Britain, and Ca
leri Mezhlauk a financial expert.
The conversations regarding a purely
commercial agreement will take prece-
dence over any other agreements of a
political character because of RuSSia'S
desire to begin placing orders in this
country.
OF course, the Russian government
could order whatever it needs right
away but there is the question Of cred
its and the methods of payment over
long period of years, which requires a
somewhat complicated credit machinery.
In order TO enable the Soviet govern
ment to obtain large. long time credits,
1t will be necessary to set up a financing
organization which must have the
American Governments backing.
10 or Is Years Minimum.
The arrangements which the Soviet
government had made with the British
industrialists whereby 65 per cent of the
credits were backed by the British
treasury are not satisfactory, because Of
the shortness of those credits.
The Sovets are willing to place large
orders in this country provided they
are not required to pay for them in a
period Of less than 10 or Is years.
Such arrangements will demand a
careful Ctt1HU hW Of6pia1c ~ ha .,
Department, the Treasury and the De-
partment of Commerce. 1t is likely
that the present Russian organization
in the United States, the Amtorg, will
either be disbanded or replaced bv
some other organization to meet the
new situation.
The question Of a commercial non
aggression pact which the Russians de-
sire to discuss will come only third in
tne order OF the present conversations.
That is to say that official conversations
on this problem will not begin until the
previous questions have been satisfac-
toruy disposed of.
Peace Mutual Desire.
There has been a silence in American
as well as in Russian quarters regard
ing the eventual political consequences
OF RuSsia's recognition.
President Roosevelt touched upon this
matter lightly in his letter informing
Lltylnof Of the decision of the United
States Government to recognize Russia.
He inserted in that letter the very gen.
eral sentence that II trust that the
relations now established between our
peoples may forever remain normal and
Continued on Page 3, Column u.