SIBERIAN OIL & COAL

Evening Post, Volume CI, Issue 49, 26 February 1921, Page 12

SIBERIAN OIL & COAL

TRUTH ABOUT THE VANDBRLIP

CONCESSION

SPECIAL INTERVIEW WITH MR.

KRASSIN. •

"Y«s, we granted the concession to the American syndicate headed by Mr.' Vanderlip," said Mr. Krassin to the London correspondent of the Manchester Guardian ia December.

I went to sets Mr. Krassin on the aS:vic© of Mr. Tcbicherm, whom I questioned by cable as to the reports about the enormous Siberian concession said to be granted by the Bolshevik Government to a..capitalist concern (continued th' 3 writer). Instead of giving me a direct a-nswer, Mr. Tohicherin recommended "me to address myself to Mr. Krassin, of the Russian Trade Delegation in London, who is acquainted with the situation.

I found Mr. Krassin at his Bondi-stireet office in a very good meod, and, although at the start he was reluctant to enter intol a detailed discussion cm the terms of this vast concession, yet,' in the course of the conversation, he stated quite clearly the principal points of the concession. \ ■ . "As a matter of>iact." he said, "I was the first to start negotiations with Mr. Vanderlip, during my enforced leisure at Stockholm on my l'etum journey from Moscow last summer; At Stockholm, fraying to wait for facilities to come back to London to continue tho trade negotiations with the British Government, I met Mr. Vandierlip', who suggested thg plan of developing tiia extreme north-eastern reg*Bn of Siberia. I found Vanderlip's suggestion a very sound one, and proposed to him to meet Litvinov at Copenhagen, in order to das"cuss the political aid© of the affair, and after that to proceed to Moscow. "I am happy/ Mj\ Krassin went on animatedly, "that Moscow realised at once the great possibilities involved in the scheme of developing remote regions of Russia, in spite of being aware that a concession on such a scale was certain to arouse the passions and opposition of various parties of Russians, a? well as-rival* financial-and industrial interests. In fact-, in addition to the odd denunciations irom Japanese and French newspapers, we witness now a heated' campaign in Russian newspapers of various shades. published abroad who are shouting at the top of their voices that the Bolsheviks are selling Bussia to foreign capitalists.

"Could not our opponents realise," said Mr. Krassin heatedly, "that our offorts to develop the natural riches <JS< Russia, be it even through foreign enterprise, are rather praiseworthy oven from thoir point of view? Indeed, the greatest crime of the former regime was its policy of rapacious territorial expansion whilst completely neglecting the development of the vast natural resources of Russia.

"The Vanderlip concession loaves ug all possible safeguards of the -interests of. the Russian people. The malicious rumour that we have granted to the Vanderiip Syndicate tho sovereign rights over the Siberian region is too ridiculous to contradict.- In fact, the concession is granted exclusively for the developraent and exploitation of oil, coal, and fisheries of the territory to the east from the 160 meridian. With, timber, ores, n#herals, furs, etc., the Vanderlip company has no concern at all. The deEonoe, police administration are, of course, Russian, and the concessionaire has to comply with the laws, regulations, etc., of the Soviet Government. AH the work entailed in exploration, boring, railway construction, etc., as well as all the expense involved in the work, is borne by» the concessionaire, the latter, obtaining, however, only a part of the result. As a special safeguard of v the interest of the State,, it is provided that the territory under exploration or working by the concessionaire, 'Containing deposits of oil or coal, is to be divided into four-mile squares, like a chess-board —the "whits squares belonging to the Government and the black to be exploited by the concessionaire. The Government has the right to exploit its squares itself or lease them to other con<essionaires.

. "The concession is for sixty years. But, to be fair, Russia will have her hands full with th-e tremendous work of reconstruction and will hardly be able to devote sufficient energy in the next decade to this remote Siberian region. If the Vanderlip Syndicate will, as it is expected, apply the proper American methods to the exploration and exploitation of the Ea6tern Siberian region, the syndicate will, of course, greatly enrich itself, but Russia, at least, will gain no less. We believe that the interests of the Russian people are fully safeguard.cd in this concession, but we are eager to learn,, and should be glad if our oritics, instead of sneering and spiteful polemics, would point out'what other guarantees we ought to look for in the work of developing Russia." Asked about the report that the Vanderlip Syndicate was, in addition, empowered to supply Russia with various goods to the amount of 600 million pounds, Mr. Krassin said : "This should not be considered ac fixed definitely. It depends entirely'"on the exte,nt to which we shall be able to provide for our meeds in the European markets." "How will American business circles look upon the opening of trade relations with Russia?"

"I am sure," said Mr. Krassin, "resumption of trade with Russia will be welcomed "in America, economically as well a 6 politically." "Is it true that the Republican Party looks favourably at the Vanderlip scheme? Is jt true that Vanderlip brought with, him a letter from Harding?"

"You know," a"nswered Mr. Krassin, "that Harding denied having sent a letter to Lenin through Vanderlip. That is quite correct. If Harding had said that he knew nothing abou^ Vanderlip's proposed visit to Russia it would have been less correct. Anyway, in this case, too, 'there is no smoke without fire.' "