GREAT SURPRISE

Hawera Star, Volume XLVIII, 8 August 1924, Page 5

GREAT SURPRISE

BRITAIN AND RUSSIA

AGREEMENT REACHED, fc: • - INFLUENCE OF MR. MACDONALD, ** OABLB— PHIS' ASSOCIATION—COPYRIGfIi LONDON, Aug. 6. In the House of Comomns Mr. Arthur Ponsonby (Under-Secretary for Foreign Affairs.) announced that the Anglo-Russian conference had resumed, resulting in both commercial and general treaties being signed. The commercial treaty gives British goods the most favoured nation treatment, and Britain gives diplomatic immunity to a small number of Russian trade delegations in Britain. The agreement was due to the dramatic intervention of the Prime Minister (Mr. Ramsay MacDonald). Yesterday he expressed the keenest disappointment at the breakdown. Today he was up at five o’clock, and before breakfast had despatched letters to all the members of the conference, urging a reconsideration of the possibilities of an agreement. In response the enthusiastic British delegates promptly assembled at their hotel. Following an exchange pf telephone aalls, supplemented by letters, the basis, of an agreement was reached, which the Rusr sians elatedly confirmed when called to ' the Foreign Office at tea time. Following Mr. Ponsonby’s announcement in the House, Mr. Lloyd George complained that the Government’s statement was incomplete and inadequate. “So far as I can see,” he said, “the treaty is a fake. It is a contract with every essential figure left out.” He asked: “Are Russia’s inter-Allied debts going to be written down by 25 to 50 per cent ?” Mr. Ponsonby intervened, stating: “This is an orgy of misrepresentation. Debts and other claims are left for later discussion.” Continuing, Mr. Lloyd George said: “The treaty will be signed to-morrow, but Mr. Ponsonby has not the ghost of an idea what it is. He is going to trust to luck. Ought we to guarantee a loan to Russia when we will not guarantee a loan for all the Allies?” Conservatives and Liberals followed Mr. Lloyd George, criticising the agree, ment and demanding an adjournment pending the production of the text of the agreement to-day. Mr. J. L. Remer (Conservative) declared that the Government was faced with a hostile House. Mr. G. Lansbury (Labour) exhorted the Government to resist, even if it meant defeat. Meantime Mr. J. R. Clynes (deputyleader of the House) communicated with Mr. MacDonald, and later announced that the Premier had agreed to accept a motion for an adjournment. This meant that the agreement will be signed this morning as arranged. Mr. Ponsonby subsequently stated that the commercial treaty and the general treaty involved an unusual departure. The commercial treaty was that -we took into account the Soviet’s monopoly of foreign trade and granted to a limited number of the trade delegation diplomatic immunity for themselves and for the existing office of the trade delegation. He added that debts and claims occupied the chief place. The negotiators were faced with the Soviet decrees and repudiations of nationalisation, while we were deter- ' minefi that the legitimate rights of British citizens should be recognised. The general treaty contained the Soviet’s admission of its liability to bondholders and an assurance that the Soviet would negotiate with bond-holders. (Loud Opposition laughter.) Mr. Ponsonby believfed they were in process of negotiating with a very considerable number. The commercial treaty conferred on Britain the most favoured nation, treatment, in return for which Britain admitted Russia into an export credit scheme. Mr. Ponsonby, dealing with the general treaty, stated that both sides would appoint members to a commission, which would investigate property claims and deal with the question of compensation when bond-holders were satisfied. The British Government was satisfied regarding a lump sum for miscellaneous claims, and when there was an agreed settlement regarding property claims, these agreements would be embodied in. a subsequent treaty. Arising from this the Government would submit to Parliament a proposal guaranteeing a loan to the Soviet. Meanwhile both Government debts and intervention claims would be signed tomorrow. The Government will probably resign if defeated in the debate on the Russian treaty. The Paris correspondent of the Morning Post says that reports in Russian circles show that one reason for the Soviet’s eagerness to resume relations with England and France is that another famine is in sight. Already masses of starving peasants from Tsaritzine and Samara are flying to the Ukraine and Siberia.. Peasants say it is impossible to support any longer the ruthless requisitioning of their crops in order to enable the Moscow Government to secure ready cash by selling exports. Peasants were pillaging public food stores, but the Soviet sent machine-gun detachments to drive them back. PARIS, Aug. 6. The fluctuations of the Anglo-Soviet X pourparler are - being followed closely in Paris, as it is believed that the Preimer (M. Herriot) is waiting an opportunity to recognise the Moscow Government. The French Communists and Socialists are straining every nerve to induce M. Herriot to recognise the movement.