GENOA CONFERENCE

Otago Witness, Issue 3556, 9 May 1922, Page 18

GENOA CONFERENCE

SIR JOSEPH COOK SHOWS FIRMNESS. GENOA, April 30. Before the Raw Materials Commission, Signor Rossi said he wished that the commission had given more consideration to the workers of the manufacturing nations. Mr Shepherd interposed that the workers in the primary producing countries had equal claims. Signor Rossi said that export duties should be limited to 10 or 15 per cent. The British delegate replied that if a figure was inserted in the recommendation it should not be less than 25 per cent. The British prospects were not to restrict the freedom of action of primary proilivArt LONDON, April 30. The Australian Press Associations Genoa correspondent says • The wisdom of Australian direct representation at the Conference found ample justification in the debate which was opened at the plenary session of the Economic Commission, when article 45 of the London experts’ report came under review. Sir Joseph Cook strongly opposed any interference with the revenue or with the national necessities in regard to the export of Australian products, declaring emphatically : “We will not give up our rights over our raw materials.” The discussion waxed warm between those produc’ng primary materials and the manufacturing nations. The latter jealously maintained the right of import and export duties if necessary, while desiring the producing countries of raw materials to have some form of control. Eventually the Little Entente broke away, joining forces with the raw material countries. The debate continues, but it is unlikely that the Italian proposal will be entertained. THE NOTE TO RUSSIA. LONDON, April 30. The Australian Press Association’s Genoa correspondent states that clause 2 of the Note to Russia provides that any balance standing to the credit of the former Russian Governments in countries which made advances to her between August, 1914, and November, 1917, shall be transferred to the Government which made the advances, and the Soviet’s liability shall be reduced accordingly. The remaining eight clauses have not yet been finally settled. Clauses 3 and 4 provide for the Soviet’s recognition of debts contracted by it or its predecessors with foreign nationals. Clause 5 insists on the recognition of private property claims, either by the enjoyment of similar propertv or compensation by bonds to be approved by a mixed tribunal. Clauses 6 and 7 determine that the amounts payable by the Soviet shall be satisfied by new 5 per cent, gold bonds with 50 years’ currency, taxation free, also as to how the remission of interest may be dealt with if the Russian economic conditions so require. Clause 8 deals with the-creation of a mixed arbitration. tribunal. Clauses 9 and 10 deal with the administration of justice on the lines of the Allied experts’ report, and the conditions under which foreigners shall reside in and trade with Russia on the recommendations of the same report. M. Tchitcherin'e letter has not yet been submitted to the sub-commission. It is generally regarded as naving been based on a false assumption that the .Peace Pact has not gone beyond the stage of recording the opinions of the various nations. It is recognised that it will take considerable time to draft, owing to the highly controversial subject of the disputed eastern frontiers. It is understood that M. Lenin intends to yield to Europe’s demands on the question of private property. The military party, under General Trotsky’s leadership, is dissatisfied with this decision. General Trotsky is summoning his supporters from the provinces to discuss the situation. PAPAL APPROVAL OF CONFERENCE. ROME, April 30. The Osservatore publishes a letter from the Pope to Cardinal Gasparri expressing appreciation of the nations’ efforts at Genoa to bring peace to the world. His Holiness says it will mean the salvation of humanity if the Conference succeeds, but that civilisation will be brought to ruin if it fails. LONDON, April 30.. Mr Lloyd George warmly applauds the terms of the Pope’s letter. He says that the Holy Father speaks with the" knowledge of the conditions of Western Europe, and so clear a pronouncement in favour of peace with Russia is a great asset to the Conference. MORATORIUM FOR RUSSIA. PARIS, May 1. Advices fromo Genoa state that the Judicial Committee adopted a formula of conciliation for intergovernmental war debts. It is understood that Russia, in view of her financial incapacity, will he afforded a moratorium. ECONOMIC COMMISSION. GENOA, May 1. At the meeting of the Economic" Commission, Sir P. Lloyd Greame stated that Britain had advocated the adoption of a general “most favoured nation” clause for Europe for the purpose of preventing the formulation of a series of separate agreements. The Italian, German, and Japanese delegates supported him. RAW MATERIAL. LONDON, May 1. The Australian Press Association’s Genoa correspondent reports that the Eco-

nomic Commission adopted a resolution regarding raw material to the effect that the right cannot be disregarded of States to dispose freely of their natural resources and reserve to themselves by all appro priate means their production of raw materials where it appears insufficient in quantity for national needs or is menaced by a deficit through an exaggerated foreign demand on the contrary, if the production is notably superior to the needs of the country or origin it is desirable that the exportation should not be subjected to conditions which would create for foreign manufacturers a situation of marked inferiority. Therefore, only duties of a fiscal character should be imposed. THE RUSSIAN PROBLEM. LONDON, May 1. The special representative of The Times at Genoa reports that Mr Lloyd George still hopes for acceptance by the Bolshevists of the conditions proposed; but in the case of refusal the British will withdraw and not take any further interest in Russian affairs. The British delegation is undoubtedly • anxious. A section of a special train has arrived in readiness for its departure, which suggests a Lloyd Georgian gesture to bring pressure on the Bolshevists. THE SOVIET’S TRUCULENCE. LONDON, May 1. The Australian Press Association’s Genoa correspondent learqs on good authority that Russia came to the Conference with agreements signed by small States on the lilies of that with Germany. The latest of these agreements was signed as recently as March 22. This fact accounts for the truculent attitude of the Soviet towards the Conference. As most of these agreements were made with warworn countries, the Soviet recognises that they cannot help her greatly without financial help from the nations with capital. The Australian Press Association’s Genoa correspondent states that the Italian delegation has replied to M. Tchitcherin’s letter stating that the meetings which have taken place had as their object the defining of certain points for the benefit of the Russians. Therefore they could not recognise any adequate grounds for protest. M. TCHITCHERIN EXPLAINS. LONDON, May 1. M. Tchitcherin has also written to M. Barthou calling his attention to comment in the French press, and by the Government, regarding the Russo-German agreement, which has been interpreted as being against the interests of France, also that the agreement was alleged to contain a secret clause of a military aggressive character, while the statements by the Russians and the Germans apparently have not allayed the suspicions concerning the real sense of the Rapallo agreement. Therefore, the Russian delegation, in the interests of truth and to dispel these rumours, emphatically declares that the agreement does - not contain any such clauses. The Soviet Government is not engaged in any act, direct or indirect, against France, or any other nation.. The sole object of the agreement was the liquidation of certain questions pending between two States which had been in a state of war. Both felt the necessity of re-establishing peace, both in the interests of themselves and humanity generally. It was only the first of a series of agreements to complete the general understanding for which the Powers at Genoa were striving. Regarding France’s position, the Russian Government considers that several points of contact exist with France which ensure an agreement. Russia’s policy never varied despite the hostile attitude which France maintained against her for four years. This hostility created a lively resentment in Russian public opinion. They were convinced that a change on the part of France would be beneficial to the economic reconstruction of the world. His letter was dictated bv a desire to dissipate the misunderstandings 'which might interrupt the Conference. A copy of the letter was also sent to Mr Lloyd George. M. Barthou says that the only observation he has to make is that France was never hostile to the Russian people, but only to the Government which signed the Brest-Litovsk Treaty. Mr Lloyd George is gratified that the letter has been sent. THE NOTE TO RUSSIA. LONDON, May 1. The Australian Press Association’s. Genoa correspondent states that the draft of the Russian Note has been completed and will probablv be delivered to-morrow. It recommends that the president of the mixed arbitral tribunal be appointed by the Chief Justice of the United States, with two other members, one representing all the foreign bondholders and the other representing the Soviet. It is proposed that it be permissible for bondholders individually to make their own arrangements with Russia within a definite period, failing that the claims to be referred to the tribunal. The special tribunal to deal with private property claims should be under a president, elected by the president of the arbitral tribunal, the other members of which should be nominated by the nationals concerned. A CURRENT REPORT. PARIS, May 1. It is reported from several sources at Genoa that B-’W.&i.in is prepared to conclude a separate agreement with Russia if a general agreement with the Powers proves impossible. is understood that Mr Lloyd George has informed M. Barthou to this effect.

RUMANIA’S WAR TREASURE. GENOA, May 1. The memorandum to Russia stipulates that the Rumanian treasure which was sent to Moscow for security in war-time shall not rank as a war debt, and must be restored fully. ITALY’S PIOUS EXPRESSION. LONDON, May 1. The Australian Press Association’s Genoa correspondent, discussing raw materials, points out that the Italians had to be contented with the pious expression that countries possessing a superabundance of raw materials would not impose too high an export duty. Although it is likely that they will initiate a full dress discussion when the report comes before the plenary sitting of the Conference, in order to show the Italian workers that they did their utmost to secure relief, it is unlikely that the Conference will depart from the commission’s recommendations. FRANCE’S ASTOUNDING ATTITUDE. GENOA, May 3. The French attitude caused a sensation yesterday at a meeting of the Political Sub-commission in the afternoon. The Belgians, who were absent previously, endeavoured to secure the omission from the draft of a proposal giving the Russians the option of restoring or paying compensation for private property. The Belgians demanded restoration. M. Barrel, acting on behalf of M. Barthou, stated that he was instructed from Paris, after M. Barthou’s departure, that the French approval should not be given until M. Barthou’s return. Mr Lloyd George said that such an announcement was unexpected, as M. Barthou, before departure, was ignorant of Paris’s decision. M. Barrel confirmed this view. The Sub-commission adjourned, after which the situation was informally considered. Two suggestions were made—first, that a telegram should be sent to the French' Government explaining that the draft was approved by M. Barthou and the other delegations, that it represented a compromise, and that to introduce amendments now would necessitate reconsideration de novo, and urging the French Government to confirm it without further amendment; secondly, the possibility of introducing some words in the critical article dealing with private property to enable the French delegation to let the document go forward. To-night when the Commission resumed the French moved an amendment to this article adding further safeguards with regard to the restoration of property. Mr Lloyd George said the amendment added weight to the article, which was already overweighted. That addition might well make the difference between a settlement and non-settlement. He was profoundly anxious to maintain the cooperation of France, and he would accept the amendment in spite of the danger if France agreed to pass the memorandum. Ho added that failure to agree might mean failure to achieve the pacification of Eastern Europe, with consequences upon the regrouping of the Powers which it was impossible to foresee. He appealed to their old Allies and comrades to let the first draft go through. M. Barrel said he was profoundly touched by the appeal. His position was a most difficult one. He had clear instructions not to approve until he had received instructions from Paris. The French finally agreed to send the documents to the Soviet with a reservation. The French did not give their final approval pending instructions from Paris. Mr Lloyd George then accepted the amendment. EUROPEAN COMMERCE. GENOA, May 3. The Economic Commission adopted the Swiss motion recalling the principles of equitable treatment in commerce contained in article 23 in the League of Nations covenant. It recommends the resumption of commercial relations on the basis of the treaties of commerce, founded on the one hand on a system of reciprocity adapted to the special circumstances, and containing on the other hand the possibility of the most favoured nation clause. A British preamble was adopted to this motion Setting forth that most of the countries represented at the Conference while recognising the temporary difficulties which may preclude the general adoption of the most favoured nation clause, in all cases affirm their conviction that this should be the goal to be aimed at. France dissented from the motion, suggesting that Britain was regarding the favoured nation treatment too much as a doctrine and as the only remedy for European difficulties. ’There were other remedies, such as reciprocity and commercial treaties. The Belgians have written to Signor Facta consequent on the Allies’ attitude towards Russia, withdrawing all the offers they made in their preamble to the Note to Russia, including the subscription of £4,000,000 to the consortium. COMPLIMENT TO AMERICA. WASHINGTON, May 2. It is stated authoritatively that President Harding favours ex-President Taft’s acceptance of the Genoa invitation to name a chairman for the Arbitral Commission to control Russia’s debts. He interprets the invitation as a tribute to American fairness. GOLD THE COMMON STANDARD. LONDON, May 3. The Genoa Conference unanimously adopted the Financial Commission’s report. Sir L. Worthington Evans, in presenting it, said that the Commission had not been able to provide a complete and immediate cure; but a definite stage towards recuperation had been readied. Referring to the currency, he said the report advised that gold snail be adopted as a

common standard. This was not immediately possible, but it was the ultimate object. The essential requisite was the achievement by each country of stability in the value of its currency. The currency resolutions embodied a principle for preventing undue fluctuations in the purchasing power of gold; therefore the purchasing power of the currencies should be based on gold. He hoped that the Conference of central banks, which would greatly influence prices, would result in such co-ordination of credit policy throughout the world as would enable the banks to stabilise a more general level of prices. Sir L. Worthington Evans said that meanwhile the Sub-commission had made a useful proposal for technical improvements in the exchange markets, which would facilitate purchases and sales, and would limit the risks which seriously interfered with trade. Referring to the International Corporation, he said that the capital to be subscribed was £20,000,000. It would be controlled by the Central International Corporation, which would be registered under a British company, and would be managed by directors to be nominated by the affiliated national companies. M. Picard (I ranee) said that if the banks studied their vast programme with complete independence of mind, they would work much-needed reforms. POLITICAL RECOGNITION OF SOVIET. LONDON, May 3. The General Council of the Trade Union Congress Executive of the Labour Party, representing 6,000,000 workers, to-day telegraphed Mr Lloyd George as follows “Strongly urge full political recognition of the Soviet by other Governments as indispensable to the re-estab-.lishment of the political and economic life of Europe. The admission of Russia and Germany to the League of Nations would be a better guarantee of peace than any new non-aggression pact. TRANSPORT COMMISSION. LONDON, May 3. Sir P. Lloyd-Greame, in alluding to the Transport Commission’s report, said that the railway managements would meet in Paris at an early date to put into operation technical measures within their competence, and to agree to a recommendation for measures relating to Government action. GENOA, May 3. Sir P. Lloyd Greame stated that the meeting of the railway managements would result in the establishment of a standing committee of railway managers which would co-ordinate and execute a policy. The Commission had invited the League of Nations to examine the progress made and to assist the nations in putting the resolutions into operation. A CONCILIATORY ATTITUDE. LONDON, May 3. The Australian Press Association’s Genoa correspondent states that M. Tchitcherin. in addressing the denary session, said that the Russian delegates would recommend the Soviet to accept the findings of the various commissions to the utmost capacity of its power. FRANCE AND BELGIUM. PARIS, May 3. Cabinet decided to support Belgium’s stand at Genoa. M. Barthou, interviewed before leaving for Genoa, said: “I shall only return here in the event of a full agreement of Cabinet, and with the entire approval of my former actions and complete confidence in my future activities.” The Matin is of opinion that M. Barthou will supply the necessary soothing explanations. The idea of a disagreement with Belgium is far from everyone’s thoughts. The Journal says: M. Barthou came to Paris to urge consent to Mr Lloyd George’s proposals. He found himself faced by colleagues seeking information concerning the strange decisions, envisaged at Genoa, and matters concerning Russia. M. Poincare displayed considerable surprise thereanent. He informed Brussels of his decisions, also expressing a desire to see a complete agreement established between France and Belgium. May 4. M. Poincare informed the Newspaper Exchanges correspondent that France will stand firmly by Belgium if there is difficulty at Genoa. He said: “I prefer to resign rather than sacrifice Belgium.” He added that Cabinet, including M. Barthou, was unanimous that France would not sign the Russian memorandum while Belgium refused to sign. M. Barthou will return to Genoa on Friday. BERLIN, May 3. The Belgian Legation categorically denies the reported existence of a secret Franco-Belgian Treaty providing for a joint offensive in Germany in the event of an attack on the Allied occupation by troops or any threat to the Treaty of Versailles. MR LLOYD GEORGE’S FIGHT. CAPETOWN, May 3. General Smuts, in an interview on the prospects of the Genoa Conference, declared that unless Mr Lloyd George could succeed in modifying the policy of M. Poincare and M. Tchitcherin, disarmament must disappear all over Europe and an Armageddon wonld become the only goal of civilisation. He added : “With all mv heart, I pray for victory for Mr Lloyd George in this struggle. If he fails, the results will be lamentable.” TREATY RIGHTS TO BE SAFEGUARDED. PARIS, May 4. Cabinet approved of the principle of a non-aggression pact on condition that French rights under such a treaty are scrupulously observed.

INTERVIEW WITH MR LLOYD GEORGE. - LONDON, Mav 4. The Australian Press correspondent at Genoa states that Herren Wirth and Rathnau had a lengthy interview with Mr Lloyd George and submitted their views on the general situation. The British delegation has not received any communication on the French position, and they presume that nothing will be done until M. Barthou returns to Genoa. The British stand firm that a meeting of signatories to the Versailles Treaty should be held before May 31 at Genoa,. ITALY AND TURKEY. LONDON, May 4. Official circles allege that tlie fuss made in the English press over the Italo-Tuxkish agreement is due to a misunderstanding. Diplomats state that the agreement is not with the Kemalists but with Constantinople and is purely commercial and is limited in character. It does not affect in the least the amicable relations between the British and the Italian delegation. RUSSIANS DISAPPOINTED. GENOA, May 4. The Russians declare that the Allies' offer of financial help is disappointing and inadequate. Probably the oilfields will constitute the basis of Russia’s whole future international policy. They were studying a plan for dividing the BakuGronzy fields into five zones, the Soviet to operate one and hand over the others to an American, British. Belgian, and French group conditionally upon a de jure recognition of the SovieJ,. and the receipt of adequate financial help. DAMAGE BY ALLIED TROOPS. LONDON, May 4. Mr Chamberlain stated in the House of Commons that Great Britain had declined to admit any obligation to compensate Russia for the damage caused there by the Allied troops after the armistice. NECESSARY CREDITS OUTLINED. GENOA, May 4. M. Radowski has addressed a Note to the Finance Commission detailing the credits necessary for Russian reconstruction, namely:— For irrigation—Two billion and seven hundred million gold roubles. For industry—One billion gold roubles. For the reconstruction of railways—-Five billion gold roubles, of which half must be foreign capital. SMALL NATIONS ALARMED. LONDON, May 4. An Australian, just returned from Genoa, declares that the five small nations north and adjoining, including Poland, entered into agreements with Russia for trade reciprocity before the Conference, and the possibility of the Conference dispersing resultless fills them with consternation. The Little Entente, headed bv Czechoslovakia, is also alarmed, because it would be caught between Germany and Russia in the event of any war and ground to dust. GERMANY’S LATEST OFFER. PARIS, May 6. Herr Bergmaun, a delegate to the Genoa Conference, has arrived, bringing the German offer to pay reparations by means of a 60 milliards of marks loan instead of by means of extra taxation. A GRAVE RESPONSIBILITY. LONDON, May 4. Germany asserts that she is unable to pay reparations without trade; Italy is bankrupt, and must get raw materials; France prefers to seize the Ruhr rather than assist to resurrect German trade. The position is that Great Britain must choose between trading with Germany or Russia (which she desires to doi or breaking with France (which she does not wish). If the Genoa Conference fails to achieve something, a European war will be almost inevitable. M. BARTHOU’S DIFFICULT TASK. PARIS, May 5. Before returning to Genoa, M. Barthou stated : “I have a difficult task to accomplish, but I shall not be dragged into any trap. I hope that France’s rights will triumph.” M. TCHITCHERIN INTERVIEWED ROME, May 5. The Tribune published an interview with M. Tchitcherin in which he declared that the memorandum aggravates the conditions on which accord was based by Mr Lloyd George’s letter of April 20. M. Tchitcherin cannot accept the interdiction on Russian territory of pronaganda against capitalism and also reserves the Soviet’s right to negotiate with Rumania on the problem of Bessarabia being interdicted. M. Tchitcherin says that the whole proposal in regard to a moratorium for Russia’s debts is too vague, and he considers that the proposed arbitral tribunal infringes Russia’s sovereign rights. MR J. L. GARVIN’S IMPRESSIONS. LONDON, May 6. Mr J. L. Garvin, writing from Genoa, states: “We have reached the pinch. Owing to the Franco-Belgian demand and Russia’s inevitable refusal. I anticipate that the Conference next week will either break down or adjourn for a few months. The Franco-Belgian insistence on some universal principle of abstract justice is cheap and futile. The French and Belgian ideas of politics and economics are inherently and permanently opposed to the Soviet’s, but nothing can put Europe right except an agreement. The restoration of property by Russia is impossible, but the Bolshevists are willing to compensate by means of concessions and shares to an extent enabling Western capital to fare aa

profitably under the Soviet as under a Czar. If the Conference adjourns it will give both sides an opportunity for studying Mr Lloyd George’s non-aggressive pact. Poland is the main difficulty thereto. Eumania is another. The Russians are on strong ground regarding both. If Poland’s present impossible frontier could voluntarily be revised, a 10 years’ pact could be easily attained a few months hence. Apart from the political difficulties, the Technical Commission’s solid work will not be destroyed. It has laid the foundations of a general law of economic intercourse which might last for centuries. The Soviet is being besieged Dy concession hunters, among whom France and Belgium are sure to figure later. Russia’s oil attractions are certain to attract American and European commercial men whatever their Governments may decide.’’ ANTAGONISTIC TO MR LLOYD GEORGE. LONDON, May 6. Mr Garvm, writing in the Observer, says: “Genoa by- Tuesday will know whether the Conference has achieved any common policy for a broken Europe or whether it has thrown back the pieces into the melting pot. It looks as though what the Conference’s friends* wanted will not be fully attained, and neither will what its enemies expected. The present situation is unparalleled in international affairs. M. Poincare dictated orders and refusals like a suzerain. He would not come to Genoa or confer with the Allies at San Remo. He merely showered negatives, offering no constructive alternative. M. Poincare has been absolutely the enemy of the whole method and spirit of the Conference from the beginning, desiring its failure. He is the most stubborn figure in the world’s affairs. Full of logical ability and without a single ray of imagination or humour temperamentally, M. Poincare is fundamentally antagonistic to Mr Lloyd George. On the contrary, Mr Lloyd George and M. Barthou have become friends. The latter, like everyone else, came under Mr Lloyd George’s "personal spell. Had M. Barthou attended the Conference as Premier it would have been a decisive success. The Conference from first to last has been a duel, but the conditions have been uneaual. Mr Lloyd George, in the plenitude' of his decisive and conciliatory nowers. has been in the open w’ lie M. Poincare has been in ambush Tlie latter does not believe m conferences. He will finally obstruct the restoration of any complete European system. While chaos continues the French military policy reigns supreme. Until M. Poincare resigns or the present reactionary Erench Chamber has been dissolved. France will not work for European cohesion. M. BARTHOU’S STATEMENT. GENOA, May 6. M. Barthou has returned. He saw Mr Lloyd George this evening. He stated that he was instructed by his Government not to give final approval to the memorandum until Belgium had approved, but he was confident that a formula would be found, otherwise France approved of the memorandum and wished sincerely for the success of the conference. Mr Lloyd George replied that the next step was to await the Russian reply. He had noticed that the French papers had made reference to the meeting of the Supreme Council at Genoa. What he had suggested was a meeting of the Allied signatories to the Versailles Treaty. M. Barthou replied that his Government clearly understood this, but his Government was not prepared for any such conversations until after May 31. It is understood that the conversations which have been proceeding during the past two days between the British and Italian delegations and M. Krassin and M. Tchitcherin have yielded absolutely negative results. The two last named showed themselves decidedly infcransigeant in their demands. It is alleged that they asked a minimum immediate grant to the Soviet Government of three milliards of gold roubles.