Evening star., 1935-02-01
SOVIET 4SET-UP'
MAY Be SCRAPPED
Hull Says Debt Plan Failure
Must Decide Fate of
Credit Bank.
BY the Associated Press.

| BY the Associated Press.
A move to scrap the bank set-up to
foster credit to Soviet Russia was
considered by officials today after
attempts to reach a settlement Of
Moscow's debt to the United States
had collapsed.
The way for such action was opened
by Secretary of State Hull last night
after a final talk with Ambassador
Troyanovsky at which the United
States fatty refused to meet the
Soviet governments condition for a
debt accord. This condition was
understood to be a $100.000,000 cash
; loan from the American Government.
| Reporting that the year-long nego-
, tiations must now be regarded as
having come to an end" the Secre-
tary added that it devolved upon the
! trustees of the administrations Ex-
| port Import Bank to decide now
whether there is ANY good reason
| for continuing its existence.
No statement was forthcoming i'm
mediately from the bank. which was
established to guarantee credits ex-
tended by private industries on anti
cipated Russian orders.
Meeting Soon Expected.
! 1t was regarded as likely. however
/ that its officers would meet soon to
! discuss the situation. Such meeting
would have to be summoned by
George N. Peek. president of the bank,
in his capacity as foreign trade ad-
wiser to the President.
Significance was attached to the
fact that both r. Walton Moore
Assistant Secretary of State, and
Robert c. Kelly. chief of the State
| Departments Eastern European Di-
vision, who participated actively in
the debt discussions, are officers OF
the bank
F; In unofficial circles the prediction
was made also that as a result OF
the failure of the debt negotiations
and the blow to hopes for a trade
revival between the two countries.
the Government might not find it
necessary now to build its own embassy
in Moscow. A structure costing ST.
250,000 had been planned.
Facilities of the Export Import
Bank had never been made available
to the Soviets because of the john
son act prohibiting financial aid to
governments in default to the United
States. Under its provisions Russia
was held to be defaulter because
of the Soviet governments repudia-
tion of a $187, 100000 KerenSky debt
to America and $50, 100000 in pre-
war CZarist bonds.
American nationals in addition have
preferred claims estimated at $400,-
100000 for property confiscated or
lost after. the bolshevik revolution.
S100, 100000 Guaranteed.
Credit guarantees in excess of
$1O0,OO0,000 would have been ex-
tended to Russia if it had agreed to
fund its debts, the total of which
this Government already has scaled
down considerably.
with Secretary Hull AZ minutes yes
terday. When he emerged he refused
to make a statement. He only re-
Gently had returned from Moscow,
where he went to present American
proposals direct to the Kremlin.
Secretary Hull later issued the fol-
lowing statement:
You will recall the fact that in
an effort to arrive at an agreement
with the Soviet government with re-
spect to debts, claims and credits for
trade, negotiations were begun more
than a year ago in Moscow and
continued in Washington, but that no
understanding had been reached when
Ambassador Troyanovsky left WASH
ingtton in October to visit Moscow.
I'm our last conversations with
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