Evening star., 1935-01-28
PARLEY RENEWED
ON RUSSIAN DEBT
Troyanovsky Confident Of.
fer of 100 Million Will Be
Accepted by U. S.
BY CONSTANTINE BROWN.

Conversations for the settlement Of
the Russian debt of the Czarist and
Kerensky governments and the grant
ing of long-term credits to the Soviet
government were resumed today be-
tween Assistant Secretary Of State
Phillips, Assistant Secretary Of State
Walton Moore and Alexander Troy
anovsky, Soviet Ambassador, who re-
turned to Washington from Moscow
last week.
Troyanovsky was in an optimistic
mood He is convinced that the Gov
ernment of this country cannot fail
TO see the necessity of engaging in
active business with the Soviets and
that the existing prejudices in certain
sections of the country will no longer
interfere with the decision Of the
American Government to place the
trade relations between the two coun-
tries on sound basis.
The optimism of the Soviet Am
basSador is due to the fact that other
countries. such as France and Great
Britain, who had invested in old Russia
far larger sums than the United
States, have agreed to leave the debt
question alone and are ready to grant
new Russia important commercial
long-term credits.
Conversations Are Broad.
The conversations between the
American representatives and Ambas-
sador Troyanovsky will cover two dis
tinct features Of the American-Rus-
sian negotiations which have been in
terrupted since last October. One
will deal with the question of the
Russian debt; the other with the
question of Soviet credits to be OBJ
tanned in this country.
The Soviet government, it is stated
is willing to pay this country some
500, 100000 to cover all outstanding
debts incurred by the Russian gov
ernments which preceded to Soviets
This settlement, it is reported, is
conditional by the willingness of the
American Government to grant long
term credits to the Soviets; and this
is the stumbling block which hereto
fore has prevented the conclusion OF
an American-Soviet agreement.
1t is unlikely that the Moscow gov-
ernment will prove less adamant now
than in the past in regard to the
granting of long-term credits. The
political agreements reached with
France and other European countries
have made Russia less dependent OF
American trade than a year ago.
France Grants Credit.
The French already have granted
Russia a long term commercial loan
of one billion frances, about $62, ,000,-
900. Only details remain to be settled
This credit was arranged in Moscow
during the visit of the French minister
of commerce, Marchandeau and its
main feature is that the French gov
ernment agree to discount the notes
the Soviet government will give the
French industrialists and manufac-
turers for goods purchased in France
Another more important credit will be
arranged, it is reported, late this
Summer.
A similar agreement, but for a
larger amount is reported under dis
cussion with the British government
but the details have not been disclosed.
The Soviet government is anxious
to increase substantially its business
with the United States, which has
fallen off considerably during the last
few years. While in 1880, when the
Soviet government was not recognized,
orders placed in this country amount
ed to $150,000,000. = Only $12 1000, 900
worth of goods was purchased in this
country in 1934-most of it on cash
basis.
Unless important credits are grant,
ed. Moscow through the official Export
and Import Bank, created for the pur-
pose of trading with Russia, it will be
impossible for that country to increase
its purchases in the United States.
viii Ask Long Credit.
Whether Moscow will abandon its
request for loan of 500, 100000 re-
mains to be seen. 1t is believed in
well informed quarters that on this
point Troyanovsky may have instruc-
tions to yield But it is certain that
he will hold out for long term credits.
which the State Department is not
willing to grant, on the theory that
a credit exceeding five years ceases
to be a credit and becomes a loan.
Troyanovsky is convinced that the
re-establishment of q close economic
and political cooperation between this
country and the Soviets will be pow
erful stimulant for the settlement Of
the uncertain world situation. He Is
equally convinced that this point Of
view will be shared by the American
Government.