BUSINESS FRIENDS.

Auckland Star, Volume LVII, Issue 152, 29 June 1926, Page 7

BUSINESS FRIENDS.

U.S.A. AND SOVIET.

DRAWING NEARER.

RECOGNITION FORECASTED,

(By Cable.—Press Association.— Copyright.)

(Received 10.30 a.m.)

MONTREAL, June 28,

A United Press message from Washington declares that the United States and Russia, which have evinced mutual hostility for eight years, are being drawn together by force of circumstances, according to authoritative observers. A favourable situation is being created by the rapid increase of American exports to Russia, and the reorganisation of the Russo-American Chamber of Commerce by leading American bankers and merchants.

For these reasons it is believed that diplomatic recognition is merely a matter of months. . There are no signs of immediate overtures, but the State Commerce Departments are displaying a keen interest in Russian affairs which was formerly lacking.

This change in the policy of the administration is a matter of attitude rather than of exact terms, there being no disposition to change those already outlined by Mr. C. E. Hughes, Secretary of State, namely, acceptance by the Soviet of responsibility for the debt of 255,000,000 dollars incurred by M. Kerensky and of private claims for expropriated American property, together with a pledge not to allow Red propaganda in the United States.—(A. and'N.Z.)