22 APRIL 1922, Page 2

On Monday night the Allies were unpleasantly surprised by the

announcement that the Germans and the Bolsheviks had concluded a treaty at Rapallo on Sunday. Germany recognized the " Federal Republic of Soviets " and agreed to enter into full diplomatic relations with Moscow. The two Governments mutually renounced all claims, whether public or private, for damage done during or since the War. Germany undertook not to make any claim on behalf of Germans who had been ill-treated or robbed by the Bolsheviks, provided that the Bolsheviks should not satisfy similar claims made by other States. The parties adopted the most-favoured-nation principle as applying to- the rights of Germans in Russia and of Russians in Germany.