NO DEALINGS WITH SOVIET

Timaru Herald, Volume CXXXIX, Issue 20028, 8 February 1935, Page 9

NO DEALINGS WITH SOVIET

PROMPT ACTION BY UNITED STATES SEQUEL TO DEFAULTED DEBTS United Press Association—By Electric Telegraph—Copyright (Received February 7, 7.0 p.m.) WASHINGTON, February 7. The United States to-day slashed the American diplomatic force at Moscow and abolished consular relations with Soviet Russia, in the most complete relaxation of diplomatic contact possible short of actual severance. Senator Cordell Hull (Secretary of State), in a terse announcement that “certain diplomatic changes” had been put into effect in the Soviet capital, added: “The acting naval attache will be withdrawn, the air attache will be withdrawn, the Consulate-General will !be abolished and reductions will be ! made in the personnel at the Embassy, j This step arose directly from the I final collapse a week ago of the Russoi American debt negotiations, which ‘ began in 1933, and marked the aban- • donment of the complex machinery which the American Government set | up over a year ago to handle the “bil- •' lion dollar a year” trade with Russia i that was to result from the recognition :of the Soviet. The next step expected j is the dissolution of the American Export and Import Bank, which was created in 1933 to handle Russian and American trade credits

BELGIAN DECISION DIPLOMATIC NEGOTIATIONS DECLINED United Press Association—By Electric Telegraph—Copyright (Received February 7, 10.25 p.m.) BRUSSELS, February 7. The Chamber of Deputies, by 87 votes to 73, rejected the proposal to resume Eelgo-Russian diplomatic negotiations.