DIPLOMATIC RIFT

New Zealand Herald, Volume LXXII, Issue 22029, 8 February 1935, Page 9

DIPLOMATIC RIFT

AMERICAN ACTION

RELATIONS WITH SOVIET

EMBASSY IN MOSCOW

PERSONNEL REDUCED

CONSULATE ABOLISHED

By Telegraph—Press Association—Copyright (Received February 7. 5.5 p.m.) WASHINGTON. Feb. 6 The United States Government today reduced its diplomatic corps in Moscow and abolished Consular relations with Soviet. It is the most complete relaxation of diplomatic contact possible short of actual severance. The Secretary of State, Mr. Cordell Hull, made a terse announcement to the effect that certain diplomatic changes had been put into effect in the Russian capital. Mr. Hull added: "The acting naval attache will be withdrawn, the air attache will be withdrawn, the Con-sulate-General will be abolished and reductions will be made in the personnel at the Embassy."

This step arose directly from the final collapse a week ago of RussoAmerican debt negotiations which were begun in 1933. It marks the abandonment of the complex machinery which the United States Government set up more than a year ago to handle a " billion dollars a year" trade with Russia which was to result from recognition of that country. The next step is expected to be the dissolution of the American Export and Import Bank, created in 1933 to handle Russian and American trade credits.

BREAK WITH BELGIUM POSITION TO CONTINUE VOTE IN PARLIAMENT (Received February 7. 10.15 p.m.) BRUSSELS, Feb. 6 The Belgium Chamber of Representatives to-day, by 87 votes to 73, rejected a proposal to resume diplomatic relations with Russia.