Evening star., 1934-08-23
NEW SOVIET DEBT
TALKS HELD HERE
Troyanovsky Visits State
Department, Promising
Note Tomorrow.
BY CONSTANTINE BROWN.


The Soviet Ambassador, Alexander
Troyanovsky, called today at the State
Department for another conversation
with Assistant Secretary of State R.
Walton Moore regarding settlement
of the Russian debts to the United
States.
Ambassador Troyanovsky informed
Secretary Moore that on the basis Of
his new instructions from Moscow
he will present tomorrow a written
memorandum regarding the position
of the Soviet government to this debt
question. ss-
Moscow, it is reliably learned, is
again in a conciliatory mood and
would like to see economic rela-
tons between the two countries
established on a more satisfactory
basis, but hopes to find q similar con-
ciliatory attitude here.
Credits Involved.
The Soviet government, while willing
to come to an agreement on the total
sum owing to the United States, main
tains strongly the position that any
debt settlement must necessarily be
closely tied with the question OF cred
its obtainable in this country.
These credits, Moscow maintains,
must be of longer duration. and in
general more satisfactory as far as re-
payment and rate Of interest is con-
cerned, than those offered by any Of
the other creditor nations Of Russia,
like France and Great Britain.
The position of the Soviet govern
ment is easy to understand. While
the debt to the United States is COM
paratively small, the Russian debt to
Great Britain and France is very i'm
portant If the American debt Is
settled on a certain basis and the
credits offered can be met easily by
the other two creditor nations Of
Russia, they may turn to the Soviet
and demand a similar settlement,
which would involve huge payments
on the part of Moscow to Paris and
London. Hence the desire Of Moscow
to obtain such advantageous credit
facilities that the other two nations
should find it difficult to compete
with.
Slow to Make Offers.
The State Department so far has
been reluctant to offer the Soviets
any special credit conditions. In all
the negotiations between Troyanovsky
and the State Department officials,
the Soviet Ambassador was told that
Russia will obtain through the Second
Export and Import Bank the same
long-term credit facflities-one to five
years-as any other country seeking
commercial credits in the United
States. This, of course, provided that
the old Russian debts are settled sat
isfactorily and the johnson act is
no longer applied to the Soviets.
The Soviet government is arguing
that 1t wants better conditions than,
say, Argentina or Sweden. The Soviet
officials feel they have agreed to re-
pay us old loans which never have
helped Russia or the present govern
ment. Furthermore, they say their
counterclaimS are very important, too.
But in view Of the existing interna-
tional political conditions and in view
Of the fact that they were SO anxious
to obtain Americas recognition they
have promised to settle the outstanding
debts on an equitable basis. They
do not intend. it is said, to quibble
about the amounts-in fact they con-
slider the State Department very fair
in this respect-but insist that the
credits, which necessarily are linked
with the debt settlement, should be
so liberal that no other industrial
country, such as Great Britain and
France, shall be able to meet.