HUGE U.S. CREDIT TO RUSSIA STRENGTHENS HAND OF SOVIETS.

Star (Christchurch), Issue 18646, 27 December 1928, Page 7

HUGE U.S. CREDIT TO RUSSIA STRENGTHENS HAND OF SOVIETS.

(Special to the “Star.”) LONDON, October 19. Washington is speculating freely on the political significance of the important long term credits to Soviet Russia extended by the International General Electric Company for the supply ol electrical apparatus through the Amtorg Trading Corporation. Although the State Department continues to refuse recognition to the Soviet Government, it has given its approval to these credits, which may amount to more than £5,000,000. The influence of Mr Owen Young, the chairman of the General Electric Company, extends considerably beyond his business affairs. He was part author

of the celebrated Dawes Plan. The fact that the American company has persuaded the Soviets to acknowledge the debt of £235,000 arising out of the confiscation of the company’s property in Russia is a point of extreme significance in the minds of those who are wondering whether the United States Government may cease later on to treat Russia as an international outlaw. This huge credit has another angle hardly less important in this Washington speculation on possible future events. It makes the Soviets less needful of United States recognition, indirectly strengthening their hand in their present fight for official approval.