The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-22
CRISIS BLASTS
RUSSIAN TRADE
HOPES FOR U. S.
War Scare Brings Soviet
Into Closer Relations
With NeighborS.
BY WILLIAM PHILIP SIMMS
scripDs- Howard Foreign Editor

WASHINGTON, April 22-The
turn Of events in Europe threatens
to drive a final nail into the coffin
Of the hopes for a billion-dollar
Soviet-American trade.
At the time Of Soviet recognition
10 months ago, American business
men and farmers foresaW the pos
sibility Of selling Russia at least a
billion dollars worth Of their prod
ucts within a decade.
Last year, the first under reCog-
milton, the United States sold less
than 100000 worth Of goods to
Russia and came a poor fourth IN
the list after Britain, Germany and
Mongolia.
Today the future looks blacker
still. Russia's relations with the rest
Of Europe. Germany excepted, have
undergone a complete revolution.
She is busy signing political en-
tentes Of incalculable import with
most Of them. at the same time
negotiating more favorable trade
agreements.
Even Germany. the exception
noted above. has just extended her
a credit Of S8O000,O00 10 purchase
German products. It is to run five
years at only per cent interest.
Furthermore, Germany agrees TO
buy during the coming year not less
than 100000 900 worth of Soviet eX-
ports.
Eden Urged Trade Pact
While in Moscow on his recent
political mission, Capt. Anthony
Eden. British lord privy seal, is
known to have taken time of to
talk better trade relations with
Russia. Spokesman for France,
Italy. Czechoslovakia and the rest
of the ring now forming around
Germany are doing the same thing.
Russia's rapprOchement with the
rest of Europe will inevitably mean
closer commercial as we'll as po-
litiCal relations.
Amtorg. official Soviet trading
agency in New York, during the
first quarter of this year placed
$3.50 900 worth of orders in this
country. This was more than dou-
bic the corresponding figure in 1884.
which was S2,205,O00. But there is
a but"
A single order amounting to So
100000, was responsible for this
large gain-an order for sheet steel
rolling mill equipment placed in
Pittsburgh.
Rail Equipment Needed
There is another, and even more
significant, thing about this order.
When the mill is erected near the
Dneiper power plant, it will be the
only one Of its kind outside the
United States. In other words, I'M
less the credit deadlock is broken,
about the only orders that can be
expected in this country will be or
ders for things unobtainable else
where.
The S8O,OOO,OOO German credit is
a case in point. It is understood to
be largely for the purchase of steel
rails and other railway equipment
material in the production of which
the United States eXcelS. Russia is
in a desperate hurry to complete
the double tracking of the trans
Siberian and build other lines, es-
pecially toward the Far East. She
stands to win or lose the war, if she
fights Japan again, on the strength
or weakness Of her transportation.
A year and a half ago, officials
here mentioned S200,000,O0O as a
possible total credit this country
might advance Russia to buy cot
ton and other American products.
U. S. Negotiations Fail
The Administration set up an ex-
port-impo, bank to finance the ex-
pected traC But the Johnson law
was enacted shortly thereafter, max
ing it according to a
subsequent ruling of Atty. Gen.
Homer S. CummingS-to extend
credits until Russia settled her
debts to Uncle Sam.
Last January all efforts of Wash
ington and Moscow to reach such a
settlement and start trade flowing
collapsed. Nettled and discouraged.
the State Department announced
that "the negotiations which seemed
so promising at the start must now
be regarded as having come to an
end"
European nations, whose claims
against Russia are several times
larger than this country'S, complete
" divorce their debt and trade ne
.rntto tinr1c