DESIRE TO TRADE

Evening Post, Volume CXVII, Issue 82, 7 April 1934, Page 14

DESIRE TO TRADE

SOVIET AND THE WORLD

INTERVIEW WITH STALIN

JAPANESE POSITION

Tho policy of tho Soviet Union towards the remainder of the world and her internal problems are given by Stalin in an interview with Walter Duranty, the Moscow correspondent of the "New York Times," who has now been in Russia for several years and who has made many objective surveys of economic and social activities in that country. He is regarded as one of the ablest foreign correspondents in the world. Stalin discusses the trading relationships between Russia and other countries, her external credit policy, her relations with Japan, her attitude towards the League of Nations, and internal problems which are being faced. The interview has been written up in dialogue form and is as follows:—

Duranty: What is your opinion regarding the possible extent oi' American-Soviet trade? Stalin: What Foreign Commissar Litviuov said in London still holds good. We —the greatest market in the world —are ready to order—and pay for— large quantities of goods. But wo require satisfactory conditions of credit and we must have the assurance that we can pay. It is impossible for us to import unless we can export, because we will not place orders unless we know we can pay for them when the time comes. Everyone has been surprised that we are paying, and that we can pay. I am having credits paid back, which is not usual today; nevertheless, we are doing it. Other States have suspended payments, but the Soviet Union does not and will not do this. Many thought that we could not pay and that we had no means with which to pay, but we showed them that wo can pay, and finally they had to admit it. Duranty: How does the matter stand with regard to the production of gold in the Soviet Union? Stalin:, -We have many sources of gold supply and they are being rapidly developed. Our production is already about double that of Tsarist times— more than 100,000,000 roubles yearly. In the last two years especially we have perfected the methods of gold-winning, and found vast supplies. Nevertheless, our industry is still young, not only gold mining, but also the production of iron and steel, and copper mining, as well as the whole of our foundry industry, so that it is not yet able to accord the necessary support to gold mining. Our pace of development is increasing, but our volume of gold production is still too small. We could quadruple the production of gold in a short time if we had more dredges and other machines. CKEDIT OBLIGATIONS. Duranty: What is the total of Soviet credit obligations abroad at the present time? Stalin: Something over 450,000,000 roubles. We have paid off a lot in the last few years. Two years ago our credit obligations amounted to 1,400,000,000 roubles. Wo have been able to pay this off, and we shall meet payments at the stipulated time, by the end of 1934 or the beginning of 1935 as they fall due. Durauty: Let us admit that there is no longer any doubt about the Soviet Union's willingness to pay. But what about the Soviet Union's capacity to pay? Stalin: Wo make no difference between the two, because we will not take on obligations that we are not sure we can meet. Look at our economic relations with Germany! Germany has declared a moratorium on a largo part of her foreign debt, and we might have taken advantage of Germany's precedent to do the same to Germany. But we did not do this. Today wo are no longer so dependent as formerly upon German industry. We could produce ourselves the equipment we require. Duranty: What is your opinion of America? I hear you had a long talk with Ambassador Bullitt the ' other night. What do you think of him? Do you still think, as.you told me three years ago, that our crisis is not the last crisis of Capitalism? Stalin: Bullitt made a good impression upon me and my comrades. I had never met him before, but had heard a good deal about him from Lenin, who liked' him, too. What I like about Bullitt is that he docs not talk like the average diplomat. Ho is a straightforward mau, who says what he thinks. He made a very good impression here. Koosevelt is, according to all appearances, a decided and courageous political leader. There is a philosophical system called "solipsism," which means that you do not believe in the existence of the outer world, but only in your own personality. For a long time it seemed as if the American Government followed this system and did not believe in the existence of the Soviet Union. Eoosevelt, however, apparently is not a follower of this remarkable theory. He is a realist, and knows that reality is as ho sees it. BUSINESS IMPROVING. Regarding the economic crisis, it is really not the last crisis. It has shaken the. whole of business life, but" it seems that lately business has begun to improve. It is possible that the lowest point of economic decline has already been passed. Ido not believe that it will be possible to reach the level of 1029. But the transition from the crisis to depression and to a certain revival —but with some fluctuations up 'and down —is not only possible but perhaps even probable in the near future. Duranty: And with regard to Japan? Stalin: We should like to maintain good relations with Japan, but, unfortunately, that does not depend on us alone. If a reasonable policy prevails in Japan, then our two countries can live in amity. But we fear that the militant elements may be able to push saner policies into ; tho background. There lies the real danger, and we are forced to prepare ourselves to meet it. No nation can respect its Government if it sees the danger of an attack and does not prepare for self-defence. It seems to me that it would be unwise for Japan to attack us. Her economic position is not particularly good, and she has weak points: Korea, Manchuria, and China. In addition, Japan can hardly reckon on the support of other States in this adventure. Unfortunately, good military _ experts are not always good economists, and they do not always distinguish between the force of arms' and the force of economic laws. RELATIONS WITH ENGLAND. Duranty: And with regard to England? ' Stalin: I assume that the commercial treaty will be concluded with England and that economic relations will develop, as the Conservative Party must realise that it did not gain anything by placing difficulties in the way of trade with the Soviet Union. I doubt, however, whether in the present circumstances the two countries will be able to derive such big advantages from this trade as might be hoped. Duranty: What is your attitude to the question of tho reform of the | League of Nations, as suggested by Italy? . Stalin: We received no proposals

from Italy on this subject, although our representative discussed the question with the Italians.

Duranty: Is your attitude towards the League oi' Nations exclusively negative? Stalin: We do not always and in all conditions take a negative attitude towards tho League. Perhaps you do not quite understand our viewpoint. Despite tho withdrawal of Germany and Japan from the League—or perhaps because of it—tho League may well become to a certain extent a brake to retard or prevent military actions. If that is so, if the League proves to be a small barrier, somewhat to slow down the drive for war and help peace, then we are not against the League. In fact, should historical events take this course, it is not excluded that wo should support tho League, despite its colossal deficiencies.

Duranty: What is at present tho most important inner-political problem of the U.S.S.E.?

Stalin: Development of I ho exchange of goods between town and country, tho development of all kinds of transport, especially railway transport. This problem is not .->o easy to solve, but it is easier than the problems we have already solved. I am convinced that we shall solve it. We have already solved the problem of industry. The problem of agriculture, tho problem of tho peasantry and collective farms—that was the most difficult —can already be regarded as solved. It is now necessary to solve the problem of the exchange of goods and transport.