Correspondence
A: LETTER FROM Moscow. [To the Editor of the SPECTATOR.]
SIR,—The news that a contract has been signed in London to put an end to the petrol rate war was received here with
the greatest satisfaction. The first reports published in the• Moscow Press made it appear that the contract was between the Soviet oil syndicate and the principal English oil interests, from which Soviet commentators drew the flattering conclusion that the English interests had capitulated.
Subsequent information showed that this was not the case. The contract was actually made with the Anglo- American Oil Company, a sales organization in England of the Standard Oil of New Jersey, in which the English oil companies were not directly interested. In point of fact, however, an understanding did exist between the latter and the American group which assured the English of a large share of Soviet oil products on favourable terms. At the same time the Soviet petrol company in England, "R.O.P.," was allotted a definite quota in the English market which would increase its annual business by at least fifty per cent. Finally, the price-cutting campaign was to cease for the period of three years during which the contract lasts.
The chief of the Soviet naphtha syndicate, M. Solkolnikov, told your correspondent : " Ih spite of denials issued in various quarters, this agreement has three highly important features. First, a truce has been made between the British, American, and Russian oil interests. Secondly. the British interests have, if I may say so, finally ' recognized ' their Russian competitor, and in return for this recognition ' obtain access to the Caucasian oil fields. Thirdly, there is no clause in the contract concerning the compensation demanded by Sir Henri Deterding for nationalized property in the Caucasus, and by the Standard Oil of New Jersey on account of its Nobel holdings which were also nationalized.
I am aware that the price at which the American and British oil companies will obtain Russian products is somewhat below world market rates, but this is our regular practice as a comparative new-comer in the world oil industry (for instance, there have been similar reductions of price in our contracts with Italy and Spain) and does not involve our acceptance of the principle of compensation for nationalized ProPertY."
That the new oil treaty comes at a timely moment no one here would pretend to deny. Economic prospects inside this country are not bright, as an indirect result of the in- ability to export grain. In order to maintain the balance of foreign trade it has been necessary to increase the export of such commodities as sugar, salt, kerosene, leather, and textiles, with the consequence that it has not been possible fully to meet the growing internal demand. Sugar cards have just been introduced in Moscow and the principal cities as a sequel to the bread cards which came into force early in March, and long queues of people waiting for other commodities are a common sight. Actually, the trade figures for the first five months of the current fiscal year (which began on October 1st) show a favourable balance of twenty-five million roubles as compared with a passive balance of thirty-seven million roubles for the same period last year. Nevertheless, the shortage of grain remains the most serious difficulty of the present period. It is probable that there is plenty of grain in the country, although last year's harvest was patchy, but the price is so low in proportion to the cost of manufactured goods that the peasants decline to part with it to the State and co-operative collection organ- izations. A year ago, when there was no need for bread cards, it was found necessary to import nearly a quarter of a million tons of grain from abroad, and it seems inevitable that a similar, perhaps considerably larger, drain upon Soviet resources will have to be made this year also.
Not long ago, the Pravda published a bitter reply to Trotsky's articles in the foreign Press, written by the veteran Communist
Yaroslaysky under the sarcastic title " Mr. Trotsky in the service of the Bourgeoisie." It is interesting to note that Yaroslaysky prefers a vigorous denunciation of the " counter-
revolutionary slanders," as he terms them, of his former comrade, to any attempt to answer Trotsky's attacks. The Pravda article, however, makes it clear why Trotsky was
sent abroad. On Russian soil his personal popularity and achievements were so remarkable that it was impossible wholly to muzzle him, save by death.. His writings were still circulated, more or less secretly, and his influence remained considerable despite political defeat. Now he is portrayed as a hireling of the capitalist Press and a traitor to the revolu- tionary cause. To the average Soviet citizen he seems to have joined the ranks of MM. Martov, Kerensky, Miliukoff and others, who attack the Soviet from a safe distance.
" Social " life in Moscow, in the foreign sense of the word, hardly exists at present, except in so far as concerns the Diplomatic Corps, although the Foreign Office occasionally gives receptions or dinner parties. This is largely due to the fact that the housing crisis precludes any save modest entertainments. Foreign diplomats, however, residing in the large town houses of former aristocrats or rich merchants, are able to mitigate the long dark winter by frequent dances, bridge parties, and dinners. The most notable event of the " Diplomatic Season " was a costume ball' at the Persian Embassy on March 23rd, attended by the Foreign Diplomatic Corps en masse, and a number of Soviet officials and their wives. The prize for the best costume went to the wife of one of the Italian secretaries who wore a Sicilian peasant costume.
The well-known German conductor, Doctor Klemperer, has created a great furore both in Moscow and in Leningrad during the past month, and it is almost impossible to obtain tickets for his concerts. -Curiously enough Leningrad remains the musical capital of Russia. Both in number and quality its concerts are superior to anything Moscow can offer. Mos- cow, however, prides itself on possessing a unique conductorless orchestra. " Persimfanz," as it is called, which has been remarkably successful. Last year they gave twenty-four concerts and it is probable that this number will be exceeded during the present season.
One of the leading Moscow archaeologists, Professor Stelletski, has been giving a series of lectures on " Old Moscow," in the course of which he put forward a most interesting theory which has roused the attention of the authorities. Professor Stelletski declares that it is possible, from documents in the Kremlin archives, to discover the famous " Golden Library " reported to have been hidden by Ivan the Terrible, three hundred and fifty years ago in the labyrinth beneath the palace. According to the story Ivan accumulated priceless classical and mediaeval manuscripts which were placed in golden boxes studded with jewels. A German craftsman. named Wattennann. was employed for several years to embellish and classify the books. Other foreigners were engaged to construct two vaults, where the library and the rest of Ivan's treasure was concealed. Professor Stelletski has found documents showing that two rooms alleged to contain treasure chests were known to exist under the Kremlin fifty years after his death. Peter the Great attempted to 'discover the treasure without success. Professor Stelletski clairhs that modern methods of research and the documents at his disposal will enable the Soviet to find the vaults.—I am,
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