Recent. Negotiations of Russo- Asiatic With Soviet Government

AT A MEETING of the Shareholders of the Russo-Asiatic Cons. Ltd., in London, Oct. 23, 1922, LESLIE URQUHART, chairman of the com- pany made the following statement:* I come now to our recent negotiations with the Soviet Government and to the agreement which has resulted from them. You will remember that the conference at The Hague broke up without having achieved anything very definite. It was not, however, a failure. It elicited from M. Litvinoff an offer which will, I think, come to be regarded as a milestone in the progress of Russia from a ruinous and unpracticable Communism towards a modified form of capitalism. The offer made by M. Litvinoff at The Hague amounted in effect to this: that in return for political recognition on our part the Soviet Government would first acknowl-edge its liability for Russia's national foreign debts, and, secondly, would give the original foreign owners of property in Russia effective compensation. A very great advance that. It showed-and there have been many other signs to confirm it-how real and persistent has been the internal evolution of Russia during the past year from Marxism to the economics of the Western world. I will not now detain you with the reasons why M. Litvinoff's highly promising and significant offer came to nothing. The fact that it had been made and the further fact that The Hague Conference had separated indefinitely were the important things. The first fact seemed to indicate that the Soviet rulers, after all, proved to be people with whom one could do business. The second fact rather emphatically showed that the way to do business with them was not by unwieldy poly-glot conferences of ministers, officials and experts representing a few dozen different governments and a few dozen different sets of national interests. That method had been tried at Genoa. It was tried again at The Hague. Each time it failed, and having failed it left the road clear for a simpler and more direct approach.