Evening star., 1945-10-19
Reds Withdraw
P|ea>to UNRRA
For 700 Million
ESQ Million Relief
Fund Approved After
Deal Between Bio 3
By JOSEPH H. BAIRD.

Administration for a relief pro-
gram originally estimated by
Moscow at $700,000,000, it was
learned authoritatively today.
Instead, the Soviet republics of
the Ukraine and White Russia have
as result of a deal made among
the Big Three at the recent UNRRA
Council Conference in London-filed
relief applications totaling $3.50, ,O00,-
600. They have been approved by
UNRRA's Committee on Ability to
Pay, headed by Assistant Secretary
OF State Clayton, and are expected
to be put into effect shortly.
The Russian application, it is un-
derstood, was withdrawn more than
a month ago, but the action was not
announced at the time by either
UNRRA or the Soviet government.
UNRRA, 1t is learned, has ear
marked about $20,00O,000 of the
$3.50, 900, 900 appropriation now being
sought from Congress to start the
relief programs in the Ukrainian
and White Russian republics, which
bore the brunt of the German in
vasion.
Couldn't Meet Conditions.
Moscow. according to informed
sources, withdrew its original ap .,li-
cation when it became apparent that
the central Russian government
could not meet the conditions laid
down in the UNRRA resolution on
policy for states receiving assistance.
Section 16 of Resolution IA provides:
ut shall be the policy of the ad-
ministration not to deplete its avail
able resources for the relief and re-
habilitation of any area whose gov
ernment is in a position to pay with
suitable means of foreign exchange
The Russian application was SUBJ
mitted late last July and was refer
red TO the Committees on Supply
and Finance for study. At the time,
Deputy Director Roy Hendrickson
of UNRRA was asked by newspaper
men if gold as well as foreign ex-
change would be taken into consid-
Grafton in determining country's
ability to pay, and answered that 1t
would.
Gold Reserve Secret.
Moscow always has regarded the
amount of the Russian gold reserve
as state secret, but foreign econo-
mists have estimated it roughly at
several billion dollars. For more
than a decade the Soviet govern
ment has intensively exploited the
rich Lena River fileds as well as
newly discovered gold deposits in
other parts Of Siberia.
BY the time of the UNRRA Coun-
Gil meeting in London in September
it apparently had been made clear
to the Russians that they could not
qualify for relief because of their
large gold reserve, which would en-
able them to pay for needed food
clothes or other supplies. At that
time no formal action had been
taken on the application, and it was
quietly withdrawn.
Afterward, according to well-in-
formed sources, a secret deal was
made in London among the Big
Three. In return for Russian sup
port of resolution sponsored by
Great Britain and the United States
to provide relief to Italy and Aus
tria, Washington and London agreed
to back applications for UNRRA aiG
by the White Russian and Ukrainiar
republics.
Admitted As Members.
In accordance with the decision o1
the United Nations Conference al
San Francisco, these two republics
were reorganized as independent
and are to have seats in the UNC
assembly. This decision has en-.
abled UNRRA to treat their ap.
plications as coming from sovereign
nations, and they have been ad.
mitted as members of UNRRA.
1t is understood that the Ukraine
has asked for relief to the extent ol
$169, ,000, 900 and White Russia has
requested $8l 100000. Both applica.
tions do not total one-half of the
original Moscow request for $780,.
600, 900.
Inasmuch as the Russian reserve.
of gold and foreign exchange art
controlled by the central govern.
ment in Moscow, they are no
counted as assets of the two con.
stituent republics. Also, their ap.
plication received strength from tn,
fact that they were the primar,
Russian sufferers from the invadin.
German armies.