Monday, Feb. 10, 1930

Red Logic

Generally speaking, the official utterances of the Soviet Government represent what its leaders actually believe. Candor sometimes carried to stark extremes is typical of Dictator Josef Stalin. Last week it was a grave and ominous thing that the Dictator seemingly believed the following words. They had foremost place in the official newsorgan of the Government. Isvestia, as part of the weekly critique of international affairs contributed by an expert of the Soviet Foreign Office.

"There is no doubt whatever," wrote the expert, coldly, judicially, "that Mexico's breaking off of relations [with the Soviet Government (TiME, Feb. 3)] was dictated by the State Department in Washington. Mexico, which in 1924 proved its independence by sending a diplomatic mission [to Moscow] now demonstrates its submission to the United States foreign policy. Of all the American republics Mexico alone had relations with us. The United States regards the entire American continent as their colony. Therefore it may be supposed that Washington, by giving orders to the Mexican Government concerning their Russian policy, wished to obliterate this sign of political independence, thus proving to the entire world the influence of the United States on the American continent."

Of the 120 million citizens of the I those who see these words will nearly all believe them to be flatly contrary to fact, will promptly forget them. But of the 150 million citizens of the Soviet Union, many if not all who read will stoutly believe.

Facts are that demonstrations which the local police called "Communist" have recently taken place before Mexican embassies, legations and consulates at Buenos Aires, Berlin, Washington, etc., etc. These are the Mexican Government's official reasons for rupture of relations. As in most things Mexican, the "real reasons" are difficult to know.

Moscow's conclusion seems a mere deduction from the fact that U. S.-Mexican relations have not for a generation been so cordial as now. True, the President-Elect of Mexico, Pascual Ortiz Rubio, was accused of "going to Wall Street and Washington for his orders" when he paid his goodwill visit to President Hoover (TIME, Dec. 30), but there is no proof that he ever received any orders.

A second wave of Moscow indignation against Washington broke two days later last week, apropos the Chinese Eastern Railway. Barely two months have passed since the State Department tried to smooth over this Asiatic crisis by invoking the Kellogg Pact, only to receive a sharp snub from the Soviet Foreign Office (TIME, Dec. 16). Moscow is still convinced that Washington acted from "unfriendly motives," believes too that U. S. Railroader John J. Mantell went to China for no other purpose than to destroy Russia's sphere of influence over the railway by fair means or foul (TIME, Sept. 16).

Last week a troop of 600 White (anti-Communist) Russians suddenly raided and almost wrecked the office at Harbin, Manchuria of the new Soviet manager of the Chinese Eastern Railway, Comrade Rudy. Excited Moscow saw in this raid the "sinister" hands of Washington and Wall Street, the right hand perhaps not knowing what the left doeth. Isvestia in rampant rage called the U. S. "the imperialist leader of all the nations now arrayed against us."

In Pravda (Truth), a no less potent Moscow newsorgan than Isvestia (News), appeared a cartoon showing President Hoover astride an 18-in. gun, signaling frantically for the aid of Britain, France, Germany and Italy in an offensive against the Soviet Union. The President signals by means of wigwag flags, one labeled "Stimson," and the other "Mexican Note Breaking Relations with Soviet Russia."

Ever since 1928 a small tourist agency with a U. S. staff has been quietly doing business at Moscow under the name RUSCAPA. Last week this puny U. S. trade outpost was first to feel Red revenge-seemingly upon President Hoover. The license of RUSCAPA was canceled. Thanks to Russian logic, because Mexico broke off diplomatic relations with Russia, several trade-pioneering U. S. citizens now lack their jobs.

But paradoxically Dictator Josef Stalin goes straight on providing new jobs for other U. S. citizens. General Electric Co. has just begun to build for Russia the four largest hydroelectric generators in the world. Only a little older is the stupendous contract with Austin Co. of Cleveland to build the $50,000,000 Soviet city of "Austingrad" (TIME, Sept. 16). The Austin Co. is already preparing to erect a huge Ford factory (not just an assembly plant) in "Austingrad" which will belong not to Henry and Edsel Ford but to the Soviet Government. In return for an order for $30.000,000 worth of Ford products, the company is understood to have made available all its patents, blueprints and designs to Soviet technicians for one year.

Mr. Ford knows perfectly well that these patents and designs will be ruthlessly pirated--indeed pirated tractors copied minutely even to the pirated name Ford are already made in the Soviet Union-- but $30,000,000 is $30,000,000. If U. S. businessmen do not help to build up what some of them undoubtedly regard as a Soviet Moloch, they are aware that British businessmen will. Business, transcending all frontiers, stifling fear, mocking statesmen who refuse to "recognize" the Soviet Union, casting even patent rights into the discard, now assists the triumph of the very thing which western businessmen most hate--the Communist Ideal.

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