RUSSIA’S DEBTS.

Star (Christchurch), Issue 16715, 22 April 1922, Page 10

RUSSIA’S DEBTS.

COMPLETE RELEASE DESIRED. THE ALLIES’ POINTS, By Telegraph—Press Association—Copyright Australian and N.Z. Cable Association. (Received April 22, 2.36 p.m.) GENOA, April 21. As Mr Lh>yd George predicted ye»« terday the Russian, reply enables tho sub-committee of th© First Com mission to begin its labours. The Germans also bffioiaJly confirmed tho Prime Minister’s statement, so that th© outlook for a successful outcome is materially brightened. The points which th© Allied Govern* ments laid down in the informal conversations, which the Russians felt im» polled to refer to Moscow, were:— (1) Th© Allied Governments cannot admit any liability regarding claims advanced by th© Soviet Government. (2) In view of the serious economic condition of Russia such creditor Governments are prepared to write down our debts owing by Russia by a percentage which will be determined later. Th© Allies were prepared to consider not only tho postponement of interest but also the remission of some parts of the arrears of interest or postponed interest. It must, however, be definitely agreed that there can be no allowances to tho Soviet Government against other debts, or tho financial obligations duo to foreign nations with regard to the return of property and compensation for damage or loss. RUSSIA’S REPLY. The Russians, in their reply, said “Wo are srtill of opinion that the sent economic position of Russia should fully justify the complete release of Russia from all her obligations mentioned in the Allied proposals, by reason of her counter claims. However, the Russian delegation is prepared to make a further step towards a solution cr adjustment of differences by accepting the points laid down, provided adequate help is given to her to recover from her present economic state. If this is done she is willing to restore any pro per tv nationalised or withheld, or, where this is impossible, to otherwise satisfy their claims. Foreign financial help is absolutely essential for her economic reconstruction. Without it the Russian delegation are unable to see their wny to saddle the country with debts which could not be discharged. Further, the Russian Government could not admit liability for their predecessors’ debts until the Soviet has been formally recognised by the Powers concerned. The reply is signed by M. Tchitcherin. COMMITTEE OF EXPERTS. When the Russian reply was received the sub-committee of the First Commission informally considered the matter. It was generally accepted as a hopeful basis upon which a discussion could be based. A committee of experts was immediately appointed to in vestigate the details. The committee consisted of one expert from the Five Powers, one from the neutrals, and one representing the Little Entente. QUESTION OF COMPENSATION. It may be regarded as certain that the main controversy will centre on tho question of compensation to nationals for property confiscated or destroyed, because it raises the question of interference with the internal policy of Russia Nationalisation was the slogan of the revolutionary policy, and the Soviet cannot be expected to depart from it.