ANGLO-SOVIET TREATY.

Press, Volume LX, Issue 18184, 22 September 1924, Page 14

ANGLO-SOVIET TREATY.

BRITISH GUARANTEED LOAN. OPINIONS AND COMMENTS. (TEC*}*: OVU ow:i coeeesponcXjl.) LONDON, August 12. '' Everv sane thinking City man i" aghast at the shameful 'jugglery of the Government in the latest phase of their Bolshevist courtsliipl The pseudotreaty is a sham, but it is'nevertheless a snare. Its political aspects can be left to the scrutiny of politicians. Its economic bearing is wholly dishonourable and destructive." This is the opinion of Sir Lionel Phillips, pre\iouslv M.l', for Yeovil and a partner in a eitv firm, of the Anglo-Soviet Treaty. "This country," he goes on to say,

•'owes its position to rigid obscr\ancc of its engagements. Bills for much of the world's trade are drawn on London because they are met upon presentation. That" confidence keeps London, in spite of its relative impoverishment, as the commercial centre oi the world. Once compromise upon any question of financial probity, and the position will go. Every one in the" City will, support the truth of this statement and pray that- Parliament, the master of the situation, will veto the latest exhibition of the careless or wicked procedure of those who, ■ for a brief moment, let us hope, <hold in their hands -the reins of office. Among Liberals and Conservatives there are no doubt those who rank party above all other considerations, but, even in this rather backboneless era, there must still bo a vast majority that puts the fortunes of this country aud the Empire on a higher plane." , It is pointed out that the omission from a preamble of any mention of his Majesty the King constitutes a serious innovation. It" appears tho legal experts of the Foreign Office, in examining tho draft of the Treaties, found themselves in a difficulty. They seem to have studied the peculiar constitution of the "Union of Socialist Soviet Republics" in the hope of discovering some personal head of the State who might be compared with tho president of a republic. Finding none, they, seem to have come to the conclusion, that the King could not malse a treaty with an impersonal entity, and that in this case tho treaty-making power on the side must bo assumed to reside in the "Government of Great Britain and Northern Ireland."

Always for the Alien. *'llere is a treaty," says the "Morning Post," "against which both tho other parties vehemently protest, and although the Government cannot obtain its ratification without the support of one of them, the Prime Minister signs it. Mr Lloyd Georgo went very far in ignoring tho rights of Parliament, but even Mr Lloyd George, with all his passion for treaties, never played a trick so scurvy. That Mr Ramsay Mac Donald intends to boast of hia signature for electioneering purposes may bo true or it may not. But what- land' of an. excuse is that? Even, so, it may be doubted if the vaunt of having given away British interests, from fishermen to bondholders, to Prussian Bolsheviks, will attract the votes of honest citizens. . The Russian Treaty is the concession of the demands of'the inveterate foes not only of the British Empire but of civilisation. Did the rulers of Russia hold their authority from the people of Russia, ib would bo a different matter. But these aro the tyrants of Russia. What a contrast. to the treatment of tiie' Soviet by tho Govern mentis the dealing of tho Government with the Dominions. Although the previous Administration had pledged the word of a British Government to the policy of Preference, that pledge was broken by the Socialists without the least consideration for honourable obligation, or for tho people of the Dominions, or for the unemployed in this country. The solicitude of the' present Government is always and everywhere for the alien; and if the alien be a Bolshevik, his claim is irresistible." "When the invitation to the' Soviet delegation was first formulated, London bankers published a signed manifesto lading down, the conditions which they considered must be fulfilled by the Soviet Government before there could bo the slightest chance of any re-entry of Russia to the British. capital market. These conditions included: A recognition of public and private debts; the restitution of private, property _to foreigners by Russia; no confiscation of private property; and freedom for private traders of Russian nationality. It would appear that Russia cannot fuJfil a single qualification laid down in the bankers' memorandum as | among those which were necessary for tho restoration of Russia's credit.

No Acquaintance -with Finance. presentative, "that the Socialist Government does not yet realise the harm that it lias done to British credit by its desire to placate the extremist section of its followers. By treating the Soviet as a lcsponsiblo Government whose word can be regarded as trustworthy, the Socialist Government has seemingly' given away practically all that might be regarded as' a basis for insisting upon tho restitution of confiscated property arid a recognition of those debts which wero not merely dofaulted upon, but definitely repudiated." . , . ' "If there is no more m the Trcatry tban Tve can sea at present," said a prominent stockbroker, "namely, iloan on condition that a compromise is made with a certain section of the bondholders, the thing is absurd. Personally, I think there must be something behind it—for, in my opinion, the Prime Minister is certainly not a fool." "It may be politics," said another member of tho Stock Exchange, "bu'o it has not a nodding acquaintance with finance." , A foreign market dealer said: ''On tfie face of it. it is absurd to give a guaranteed loiin, the only quid pro quo being' an agroemnnt with half the bondholders. We refuse to believe that Parliament will sanction it. and are not seriously- considering the 6itua-

tion—at any rate, from tbe financial point of view." Trays of Cigarette Ends. The political correspondent. of tl?e : 'Dailv Telegraph" tells the story of the last days of tho negotiations. "It is now known/' ho <( th3t Rakovfilry rushed home on his own initiative because he had been informed by his coHeajruec, Tomsky and S;heinmann, that the intention of thoir Government was to lucak off tions, as no real cash was to be obtained. In order to counteract this do cision. which ht? oolle-.igties heartily endorsed, Monsieur llakovsky used all his persu&sivo talents, but with me afire results. Moscow would not giv* in. This inevitably brought about tlie break after the twenty hours' mectimi, at which Mr Ponsonby exerted all his powers to save tho Conference from failure and his political reputation from an irreparable blow, but- at last, when the atmosphere of the Conference rcKrm was fuller of smoke than a pilar*l -room, and whole' travs of cigarette ends attested the assiduity of the delegates, the rupture came. Tho Soviet delegate* left the room not to return. Kakovsky looked eloomy, but Tomsky and Scheintnann did not hide their sutisfaction. Tho Foreign Office issued the official statement about the final breakdown, drifted by Mr Ponsonby liimself, who sadly told bis friends tftcio was i\o however, powerful ■pressure was brought to bear on Mr MacDoriald and on tho Soviet delegates as well. It came from several quarters. but principally from that wing of the Labour Party which is closely connected with the Third International; the. names of Mr Purcell and of Mr Cook (of tho South Wales Miners Federation) arc mentioned as prominent in the csanpaign, for saving the Conference. Mr Mat'ConnM did not put no any resistance- and was only too willing to' follow tho direction of his turbulent followers. There was move difficulty with the Soviet delegates, who declared that they would go in fear or their lives if they gave in. But a. pressing. appeal was despatched to Moscow, and at last the Soviet Government seems to have made concessions authorising its delegation to sign an agreement without a binding promise of a fixed loan. (The last figure demanded was £20,000,000.) "A good word must be said in fairness for the non-political members of the British delegation. They have been loyal not only to the Government in power but also to their duty as patriotic subjects."-

"Diplomatic Immunity." A barrister aud a former Liberal M.P. explains what Clause 2 means wliicli grants "diplomatic immunity'' to the Russian Trad© Mission and thenpremises. . Diplomatic immunity, ifc seems, means, subject only to_ deportation oil discovery, that every single member of the Trading' Mission, if be is on tho list of names to be drawn up, can commit any crime he likes except attempting the ]ifo of his Majesty, and cannotbe arrested or punished in this country. He' can enter into any contract for himself or on behalf of anybody else, including- his Government, without his creditors having the slightest remedy at the hands of our courts. lie can commit , murder _ or manslaughter, blow up public buildings, set fire to houses, print forged bank or treasury notes, make counterfeit coin, hold seditious meetings, issue obscene, blasphemous, or seditious literature, commit burglary, obtain", money under false pretences, or fraudulently obtain credit with absolute impunity. ■ He can neither be . arrested nor prosecuted. . His residence cannot bo searched, nor can the premises of the Mission, whether' factory, warehouse, dock, or office, be examined, though they may be the scene of seditious meetings, the publication and distribution of treasonable literature, or the home of the most dangerous and criminal conspiracy. The sole remedy is to deport the infringer of our law among the personnel of the Mission on proof of - his misbehaviour.