UNITED STATES AND RUSSIA.

Auckland Star, Volume LIV, Issue 174, 24 July 1923, Page 5

UNITED STATES AND RUSSIA.

NO RECOGNITION OF SOVIET. CONVINCING EVIDENCE. DEMOCRATIC BASIS. (By Cable.—Press Association.—Copyright! NEW YORK, July 23. The Secretary of State (Mr. C. E. Hughes), replying to a letter from the president of the American Federation of Labour (Mr. Samuel Gompers) asking for a statement of the United States' attitude toward Russia, reasserts that the United States does not grant recognition of the Russian Government at the present time. The United States, contrary to the European custom, does not withhold recognition from a Government arising from a revolution, but it must be assured that such a Government has popular Eupport. Mr. Hughes concludes that the United States cannot consider recognition of the Soviet Government until it receives convincing evidence that the Soviet Government observes the fundamental conditions of international intercourse and abandons persistent attempts to subvert the institutions of democracy as maintained in the United States and other countries.— (A. and'N.Z. Cable.) ___ ■■$**!$* Impartial reports from the few foreigners who have been allowed to enter Russia and investigate for themselves the condition of the people and the country agree that the Soviet Government is firmly established, and that as far as they can judge there is no immediate prospect of it being overthrown. This view does not harmonise with the confident prediction* that were indulged in during the early etages ot Soviet rule. It is a view that is not to the Western nations of Europe or to the United States. 'Most of the Governments of the countries of Western Europe etill refuse to give formal official recognition to the Soviet Government and to enter into diplomatic relations with it. Not only do these Governments object to "shaking hands with murder," as recognition of the Soviet rule has been described, but they decline to recognise a Government tha*f has confiscated private property, including the private property ot foreigners and foreign companies formerly established in Russia, and has also refused to accept responsibility for the foreign loans lent to the Czarist Government. Although the Soviet Government is most anxious to obtain official recognition 'by other countries, and especially by the Great Powers, and has made many overtures in this direction, it cannot repudiate the policy of confiscation of property, because opposition to private ownership is one of the mam principles of the communism on which it is founded. But until this policy is repudiated, and foreigners 'who have been robbed of their property are compensated by the Soviet Government, the Governments of other countries will t>e slow to abandon the position they have taken up. One of the main reasons why th« Soviet Government is anxious to secure recognition by foreign Governments is that this would facilitate the introduction of foreign capital to develop Russia's resources. The potentialities ot Russia are so great that all that U needed to bring about prosperity in that country is development. The money for development can come only from foreign capital, but foreign capital is shy about entering a country where the Government has formerly carried out a policy of confiscation of property. Even the prospects of big profits from the concessions which the Soviet Government is now willing to give to foreigners who undertake the development of Russian industries have done little to attract capital to Russia. The Soviet Government feels that if its Tule were formally recognised by foreign Governments and diplomatic relations were established, foreign capital would flow into Russia once more, and the foreigners would feel that their own Governments would be able to protect their interests in Russia. To the extent of attempting to attract foreign capital in order to develop Russia's natural resources the Soviet Government toae abandoned its communist opposition to private ownership, but it does not propose to compensate those private owners whose property was confiscated in the early daye of Soviet rule. It is estimated that at the time of Wiia confiscation British companies, firms and individuals owned property in Russia to th« value of £180,000,000. The loans to the Czarist Government, which the Soviet has repudiated, exceed £2,000,000,000 of which Great Britain's share is £690,000,000, the greater part of the remainder being lent by France.