"COMRADES."

Auckland Star, Volume LV, Issue 249, 20 October 1924, Page 8

"COMRADES."

RUSSIA'S TRADING. AT " SOVIET HOUSE." HOW IT IS WORKED. Seen from the outside, there was nothing revolutionary about "Soviet Houso"— a plain, square, new building, almost in the shadow of the grey, old Bank of England. The very courteous, English-speaking attendant showed no disposition to bite mc. If the big liftman was really a Cossack without whiskers, he seemed to have no interest beyond tlie floors at which his numerous clients wished to alight. Vet, somehow, tlie "atmosphere - ' was different. There was something curious in the intense scrutiny 1 found myself undergoing while I wailed for my appointment (says an English correspondent). An idle group of four youngish, nondescript men looked away instantly when I looked at iliem. I 'could bear a remark in a st range tongue us 1 followed the long-haired broad-visaged .Slav youth to another floor. ! £15,000,000 Turnover. A handsome, clever young Russian, M. Erenkel. set himself patiently and courteously to the task of explaining to mc the purpose and organisation which govern Soviet House. The big building is occupied, according to the modest doorplates. by Areos. Ltd.. the Areos Bank. Ltd., and'the Russian Trade Delegation. I had been told, in (lie city, that, since Areos, Ltd.. opened its doors in London less than three years ago. to engape in trade between Britain and Russia, its total transactions' represented some £13,000,000, and I was curious to know

, how it was being done. According to M. Frenkel. Areos. Ltd.. is registered as a British company, with its headquarters in London, and it is entirely subject to British laws. Its shareholders, however, are all Russians. It is growing by leaps and bounds. It has flourishing branches in most of the Europenn capitals, and it is even now opening up branches in North and South America. It operates a new shipping

line between the South of France and the Black Sea ports. It has nn important branch at Jaffa, and its tentacles are reaching out into Palestine. The " Chervonetz." Areos, Ltd.. it appeared, engaged in every form of legitimate commercial and financial enterprise, as between Russia and other countries. The national credit of Russia may be a minus quantity to-day, so that in the ordinary way Russia cannot buy anything much; but the credit of Areos, Ltd.. stands ln>li in London, nnd the Russians trade readily through the avenue thus provided. "But how do you finance it, in view of the fact that Russia's currency has gone completely to pieces."' I asked. "Is it simply goods against goods?" "No, no, no," said the Russian. "We have more latitude than that. So far as Russia is concerned, we work on tlie chervonetz. The chervonetz is the

new unit of the currency of the Russian State Bank, nnd it is based on gold security. Ten roubles go to the chervonetz, just as ten gold roubles should go to the English pound. "A firm in Russia, wishing to buy in England, will send a draft through' the Russian State Bank. If that draft has the backing of Areos, Ltd., any financial institution will accept it here, nnd only a fair rate of exchange will be charged. These transactions are necessarily limited at present, but with the completion of an agreement between Britain and the Soviet, and the financing of the Russian Government, there should be a tremendous expansion."

Soviet and Areos. M. Frcnkel was then asked, franlclv. to explain the mystery of Areos, Ltd. The Soviet Government does not like independent traders—or, in other words, private enterprise. Everything profitable, in this communistic State, must between all countries (except Britain) be owned by the Government. Trade and Russia is now being conductor by the Soviet's Foreign Trade Commissariat, whicii has branches in practically every European country. Why was there no office of the Soviet Foreign Trade Com.missary in London? "Areos, Ltd., are the sole commissioners in Britain of the Foreign Trade Commissariat," said M. Frenkel. "The Russian Trade Delegation to Britain lias its offices in this building, and we work in harmony with it." "But you must have the blessing of the Soviet, otherwise you could not carry on. Yet you, as a registered trading corporation, are making profits for your shareholders—a process which the Soviet Government hates aud opposes. It is difficult to understand." M. Freukel smiled. "Of course, you know that the Soviet Government is'behind Areos, Ltd.—it could not exist otherwise. The Soviet Government, ns such, does not own our shares, but individual Russians own them on behalf of the Government, and the Government of Russia benefits from the profits we make. But for all that," he added, emphatically,

we are in no sense a political organisation. We are wholly devoted to business. No propaganda goes out through this office." He was very serious about it. "Still. I cannot understand why the Soviet should have a Foreign Trade office in other countries, where there is also a branch of Arcoß, Ltd.," I remarked. "Is this merely a part of the Russian chaos?" M. Frcnkel smiled, and pushed across his desk a box of cigarettes—English. "Downski," I said to the big, whiskerless Cossack in the lift. He looked at mc reproachfully. "If this blinkin' rain don't stop, the August 'olidays will be completely rooned," he remarked. But there was no mistaking the nationality of two very fat wom°n who argued shrewdishly in the marbled hall nor of the unshapely, dark young man who tried to silence* them. They, obviously, were a bit of Soviet Russia.