Evening star., 1934-04-15
u. S.-SOV|ET TRADE
CL0UDED BY DEBTS
Signing of Default Measure
by President Brings
Uncertainty.

(Copyright. 1894, by the Associated Press.)
NEW YORK. April 14.-The debtor
nation default measure, signed yester-
day by President Roosevelt, has
created an atmosphere of uncertainty
over the potentially vast American ex-
ports to the Soviet.
Too, it has brought strong likeli-
hood of trade rapprochement be-
tween Russia and Germany.
To end the uncertainty on Ameri-
can trade, it was learned authorita-
lively tonight, the United States
Government intends within the next
week or two to issue memorandum
to business and industry setting forth
the position that the acceptance of
obligations of the Amtorg Trading
Corporation will not be considered a
violation of the Johnson bill.
Is Soviet Trading Agent.
While Amtorg is a domestic corpo-
ration, actually it is the trading agent
in the United States of the u S. S. r.
And it does not desire a drawn-o
adjudication of its legal status Of in
corporation in New York State, as
this would only add to the element
OF trade uncertainty.
Since the passage of the default
meaSure-Which this Government has
applied to the Soviet Union because
of its reputation of the debts of
previous Russian regimes-there have
been numerous conferences looking
toward determination Of the status
Of Amtorg's acceptances, which are
given as collateral on sales. credits.
These conferences. it was learned,
brought agreement on the intended
memorandum.
Germans Seek Trade.
With the disclosure of this develop
ment, it became known that several
weeks ago unofficial conversations
were started through German business
circles seeking to develop again the
extensive Soviet purchases in the
Reich that prevailed several years
ago.
In the view of observers here, the
boycott on German goods since the
advent Of the NaZis to power has
paved the way for a possible large
extension of credit to Russia.
Russia can buy in Germany many
Of the products purchased in recent
years in the United States.
There is also another factor touch
ing on the German-Soviet trade con-
versation, which are expected soon
to reach an official stage-the delay
in the Soviet trade financing of the
Federal eXport-import bank.
Russia Ready to Order.
The Russian and American indus
trialists had expected that this bank
would be a vital factor in increasing
trade. In recent weeks. the Soviets
have informed the American Govern
ment 1t was ready to place at once
orders totaling around s75,000,0O0.
1t is known that the delay hinges
on the question Of debts.
The Czarist government had no
United States debt. But the United
States, after the overthrow of the
Gar. advanced a credit of s187 7,000,-
900 to the short-lived Kerensky re-
gime. This was repudiated by the
Bolsheviks.
When the United States recog-
milton Of Russia came, the question
Of debts and claims was left to future
determination. Now, it has been
learned from a reliable quarter. the
Roosevelt administration desires a
settlement of some sort on the Ker-
ensky debt before the export import
bank starts its financing
And no satisfactory formula for
the Russians has been found.
The question of settlement with
the United States would be a ccmpar-
atively simple matter. But the Soviets
must keep in mind the much larger
deots to other powers. Against all
these debts, the Russians have huge
counter-claims.
DECTDDnCaT rDanr cor~rr-