SOVIET TREATY.

Press, Volume LX, Issue 18147, 9 August 1924, Page 13

SOVIET TREATY.

MAIN ARTICLES. DEBT SETTLEMENT AT A I DISCOUNT. PROPOSED BRITISH LOAN. (BT CABLE-PBBSS ASSOCIATIOS-OOPTEIGHT) (AUSTRALIA* AND S.Z. CABLB ASSOCIATES.) (Received August Bth, 7.55 p.m.) LONDON, August 7. Official: The Anglo-Russian Treaties will be signed on Friday. LONDON, August 7. The Eussian Treaty contains 20 Articles, the most important of which deal with loans and debts. The Soviet agrees to modify the annulment of these; pronounced in 1918, by agreeing to satisfy the claims of British holders Of loans guaranteed by the former Russian Imperial Government, payable in foreign currency. Britain, on her part, recognises the. financial and economic position of Eussia will not permit full satisfaction of the claims, the conditions of the settlement of which must be accepted by the holders at not less than half the capital values of such holdings. Each of the contracting parties will appoint three persons to examine the claims, and, if the six agree, they will recommend what lump sum shall be payable. If they do not agree the sections will report separately. The Soviet agrees to negotiate regarding the extent of compensation payable in respect of nationalised or cancelled concessions or businesses. The questions of the British-Czarist war loans, and also the Czarist gokl huided over to Britain and Germany during the war, and the Eusso-British debts and Soviet claims arising from Allied interference, are reserved for later discussion.

It is provided that, on the signing of the treaty, the British Government will seek Parliamentary approval of « guarantee loan to- the Soviet. ' Mostfavoured treatment is conceded to the Dominions, and the treaty may be extended to the Dominions if desired. The Soviet makes a separate declaration insisting on its right to claim restitution of the Eussian naval and commercial vessels disposed of without its consent.

Lord Parmoor (Lord President of the Council), speaking in the House of Lords, said British bond-holders were involved to the extent of £40,000,000. Claims on behalf of private owners and companies amounted to £35,000,000. Tho nationalised property which the Soviet had confiscated was valued at £180,000,000. KING NOT MENTIONED. LONDON PRESS QUERIES. >USTEALIAN AND K.Z. OABLK ASSOCIATIOH.) (Received August Bth, 7.55 p.m.) LONDON, August 8. The "Daily Express," asking, "Has Mr Mac Donald dropped the Monarchy in order to please the Soviet?" draws attention to tho fact that whereas treaties formerly were made m the name of the King, the Russian Treaty is between "Great Britain and Northern Ireland" one the one hand, and the Soviet Socialist Republics on tho other. This is contrasted with the Austrian agreement, signed on May 22nd, between "his. Majesty the King of Great fritam and Ireland, and of the British Dominions beyond the seas, and Emperor of India," and the Federal President of the Republic of Austria. The "Daily Express" asks: "Where is the British Empire in the Russian Treaty?" It recalls a speech by M. Rakovsky, in 1923, in, vhioh he said the collapse and dismemberment cf the British Empire was merely a question of time. •, Finally, the "Express" suggests the amendment of the draft before signature. NOT UNDERSTOOD. THE CITY BEFOGGED. (AUSTBAUAS AHD H.Z. CABLB ASSOCIATIOH.) (Received August Bth, 7.55 p.m.) LONDON, August 8. The diplomatic correspondent of the "Daily Telegraph" describes • the Russian Treaty is "How to produce an agreement not really an agreement," because all vital questions arc reserved. The Treaty no doubt will help Mr MacDonald to save his face, but it is unworthy of the name of treaty. The City Editor states that nobody in the City pretends to understand the agreement. It is universally regarded as a desperate attempt on Mr MaoDonald's part to fulfil his election pUniges and placate his Communist supporters.

The general view i 3 that a loan to the Soviet will bo impossible unless uuaranteed by the British Government. Even then it is not believed that Parliament would sanction it without a complete change in Soviet principles.