RUSSIAN DEBTS.

Press, Volume LVIII, Issue 17431, 17 April 1922, Page 7

RUSSIAN DEBTS.

QUESTION OF PAYMENT. FEELING AT GENOA. (By Cable—Press Association—Copyright.) (Aurtrftluui Mid N.Z. Cable Association.) (Received April 16th. 5.5 p.m.) GENOA. April 15. The centre of gravity has changed from tlie Conference proper to eocalled informal conversations at the Villa Albertis, the residence of Mr Lloyd George, recalling what happened in Paris in 1919 when the Peace Conference resolved itself into the TM Four. Genoa is seething with rumours, mostly wide of the mark, about what is happening in the Villa Albertis where the Russian question was discussed. Naturally those concerned 'u the discussions are laying down the maximum of their wants. Two of chief points round which a strong fight is proceeding are the recognition of the debts of the old regime and th« right of private property. At times there were serious phases in the divergences between the delegates. It can be said that no distinct advance was made. Mr Lloyd George, with characteristic phraseology, described the position: "Wo are getting "■ bridge across i ;iream. We have driven a number ol piles and now we have reached the deepest and most dangerous part of the current where a few piles have already been driven in and seem firmly fixed."

From various sources it is learned the Russians remain intransigeant on the question of the law courts. There is much propaganda going on. M. Rakowsky speaks openly in one direction whilst his colleagues, who arc threshing out the details -with the Allied representatives, apparently speak with a different voice. Various rumours as to what the Russians will do and.won't do are eagerly fastened upon by foreign journalists, especially Germans, who lay unjustifiable stress on these cansftds. It can be definitely said no party to these discussions has at the moment said: "So far will we go but no further." A statement by German journalists that an ultimatum was handed to the Russians is absolutely- untrue. The experts of the Allies together with the Russian experts conferred this morning and are expected to submit their views to delegates at the Villa Albertis this afternoon. During the conversations at the Villa, M. Krassin -was requested to furnish a report on the European reconstruction from the Russian standpoint. In the Villa discussions .France took little part. The weight of the battle fell upon Mr Lloyd George and M. Schanzer, but M, Barthou, while sympathetic, towards his Allies, felt he could safely ;.lea;ve the negotiations to them. The l '^* w taken by Mr Lloyd George and;!K#fcolleßguo3 is that if they cannot general agreement with tho mmirowii of guarantees by their efforts, itlpill be useless to leave the subject tjS the larger or first commission to sort out. Discussions at the Villa Albertis continue and hftve considerably cleared the air.

The "Russians ga*e interesting acof the feelings p? their people, masses of whom are ignorant yet are convinced there is a new world. Although chaos reigned all around they are now endeavouring to create a new position out of this wreckage, yet they were confronted with demands for the payment cf debts contracted by the old regime/ and are unable at present to find the money. The British view in reply was that they must recognise they do owe money which is due to private individuals whose claims cannot be wiped out. It is understood there is not likely to be any serious impasse on the question of these pre-war debts. War debts stand on a different footing.' In the eyes of the Allies they are debts from governments to governments and therefore can he negotiated Iretween governments and, so far as Great Britain and others are concerned, they did not want to press the Russians too hard in the difficulties under which they groan. The Allies are prepared to consider the difficulties but the signature of Russia mußt be respected. The question of the restitution of private property is a more difficult problem. It is immensely troublesome to devise a practical method as everything is nationalised. Russia must therefore discover a basis of compensation, but even here the problem is not insoluble. The Russians have submitted practical proposals for restitution, but these require'examination. It is likely as so Jinany points have cropped up on which the Russian delegation is not fully instructed that the conversations will be suspended for a few days to enable them to consult (Received April 16th, 5.5 p.m.) NEW YORK, April 14. Tho Genoa correspondent of the "New York Times" says that after two days' fruitless waiting for the Russians' reply to tho Allied proposals, Mr Lloyd George summoned a Conference between M. Barthou, M. Schansser, M. Theunys, M. Tchitcherin and M. Litvinoff to endeavour to persuade the Russians to alter their attitude. It is understood the Russians are opposing all'the Allies' plans.' It is said that Mr Lloyd George has succeeded in lessening the Franco-Russian friction.