SOVIET’S DEFAULT

Dominion, Volume 24, Issue 189, 8 May 1931, Page 9

SOVIET’S DEFAULT

Deadlock in Negotiations

INDEFINITE ANSWERS

Anglo-Russian Committee

FAILURE OF MEETINGS

By Telegraph—Press Assn. —Copyright (‘‘Times’’ Cables) (Rec. May 7, 7.30 p.m.)

London, May 7.

The Anglo-Russian debt negotiations have reached a deadlock, and the British members of the sub-com-mittee have decided to report to the joint committee that further progress is impossible owing to the Soviet representatives’ refusal to give definite answers.

Mr. Arthur Henderson, twice -since April 29, has stated in the House of Commons that the progress was disappointing. He is exerting pressure to keep the committee at work.

The following are the members of the Anglo-Soviet Debts and Claims Committee: Lord Goschen, formerly Governor of Madras, a director of the Westminster Bank and the Ottoman Bank; Sir John Dewrance, chairman of Messrs. Babcock and Wilcox, general engineers; Mr. C. T. Cramp, industrial general secretary, National Union of Railwaymen; Sir William Max Muller, a former Minister in the British Diplomatic Service; Sir Frederick Leith-Ross, representing the Treasury. The interests immediately concerned are represented on the following advisory sub-committees: —(a) Sub-committee on claims in respect of property and concessions nationalised by the Soviet Government.; (b) sub-committee on claims of bond-holders; (c) sub-committee on private debts and claims other than those dealt with by sub-committees (a) and (b). There is a fourth sub-committee dealing with intergovernmental debts. This committee, on the British side, consists exclusively of members of his Majesty’s Treasury. The expert members of the Soviet delegation are: Professor E. Preobrazhensky, Professor Dolgov, Mr. G. Arkus, Professor S. Chlenov and Mr. M. Gourevitch.

According to a report issued by the Council of Foreign Bondholders, Russia’s external debt amounts to £925,000,000, of which £738,000,000 represents direct Government loans, and the balance railway loans and other obligations. In addition, over £20,000,000 of Russian municipal loans is known in this market, all of which are in default, including that of Riga, which is outside Soviet Russia. Russia issued Treasury Bills to cover advances made by the Allied Powers during the war amounting to between £800,000,000 and £850,000,000. The payment of interest by Russia on her debts was discontinued in 1917, when a decree was issued repudiating the whole of her obligations.