Trade with Russia
Lord Halifax received M. Maisky, the Soviet Ambassador, on Wednesday. The negotiations with Russia in regard to a trade agreement seem to have been held up since the last reply of the Soviet Government, which took exception to the statement that assurances would be necessary that an increase in British exports to Russia would not result in an in- crease in Russian exports to Germany. The Soviet Govern- ment regarded this as interference with its own internal affairs. But surely a limited agreement might be possible in which such considerations would not be relevant. There are certain articles we could supply which we know Russia needs for her- self, and therefore could be safely sent to her. There are also commodities which we greatly need, such as timber, which it would be most advantageous for this country to receive. The theoretical questions can be ignored if safe practical business can be done without them. Messages from Sweden suggest that the Soviet Government is now turning its attention to greater commercial exchanges not only with South-Eastern Europe, but also with Sweden—a country now cut off Horn commercial intercourse with the West. There are indications that Russia is by no means gratified at the expansion of Ger- many's influence in Scandinavia. For Great Britain it is not good policy to put her in a position where she has no choice but to range herself economically with Central Europe.
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