BRITAIN AND SOVIET.

Auckland Star, Volume LV, Issue 154, 1 July 1924, Page 5

BRITAIN AND SOVIET.

BOLSHEVIKS WANT LOAN. CONFERENCE DEADLOCK. LONDON, June 30. The political correspondent of the "Daily Telegraph" states that a complete deadlock has arisen in connection with the negotiations between Britain and the Soviet. The plenary meeting has been deferred, as during several weeks past the British delegation did not succeed in finding common ground with the Bolsheviks. The Soviet delegates want a considerable loan without giving any guarantee that the safety of persons or property will be recognised by Russia. The Prime Minister, Mr. Ramsay MacDonald, and the chairman of the conference, Mr. A. Ponsonby, UnderSecretary for Foreign Affairs, of Sheffield, insists that tho conference should not be allowed to break up until the last extremity has' been reached. Negotiations have therefore been transferred to the city where bankers and financiers are trying to find a formula for the recognition by Russia of her debts. So far tbe result has been mostly negative. The Russians say that the interest they offer is so high that the difference between it and the normal rate can be used to repay old debts. The Soviet delegates make it a condition, however, that Russia's debts shall be reduced to 10 per cent of their original value.—(A. and N.Z. Cable.)