Recognition of Debts?

M. Scheinemann, President of the Russian State Bank, arrived in Paris fully authorized to recognize all foreign debts contracted by Tzarist Governments, with the exception of War obligations.

In a nutshell, Russia will repay its debts to France, providing she can obtain at least a ten-year moratoriurm and credits for the promotion of economic reconstruction. She will refrain from supporting Communist propaganda in France and will restore in part the property of French citizens which was nationalized when the Bolsheviki seized power in 1917. The part that the Soviet Government desires to retain as national property will be paid for in various ways, such as by concession grants, principally in oil, a commodity which France lacks. All this is made dependent upon recognition of Russia by France.

The French Government, however, believes that M. Scheinemann's mission is to establish relations with French banks instead of with the Government. It was reported that he had opened negotiations with La Banque des Pays du Nord and that, unless he can conclude an agreement with the Imperial Bank of Russia in Paris (independent since the Bolshevik regime came into existence), relations will be established with the French bank.