He had seen Ashton-Gwatkin

Frank Arthur Ashton-Gwatkin, acting counsellor at the British embassy, Moscow, 1929; first secretary, Foreign Office, 1930; policy adviser, Ministry of Economic Warfare, 1939.

the other day, who told him that I find it inadvisable to raise the question of the settlement of old debts. It’s a great pity. This problem poisons Anglo-Soviet relations through and through. It should not be touched on, of course, if a favourable outcome is impossible, but is the debt problem really so hopeless? Would the USSR really refuse under all possible conditions to discuss, for instance, a plan of settlement such as that put forward by Cazalet?

Victor Alexander Cazalet, Conservative MP, 1924–43; suspicious of the expansionist intentions of the Soviet Union, he championed the Polish case after the outbreak of the Second World War.

I replied that Cazalet had himself described his plan to me, but I was still of the view that now was not the time to touch upon such a complicated and painful matter as British citizens’ claims on old debts. This would be wiser precisely from the point of view of Anglo-Soviet relations. Moreover, I am sure that the London banks will not grant a 20- or 25-year loan to the USSR, as envisaged in Cazalet’s plan.

Leith-Ross unexpectedly exclaimed: ‘Who knows? The banks might be reluctant, but if the government were to agree to provide a guarantee, the whole situation would change radically.’

‘The last person from whom I expect any indulgence toward the USSR is your chancellor of the exchequer (Chamberlain).’

Leith-Ross protested: ‘Maybe you take an excessively pessimistic view of things. The government may not agree to a 25-year loan, but a 20-year one is a possibility. I talked with Colville

Sir John Rupert ‘Jock’ Colville, assistant private secretary to Chamberlain, 1939–40, and to Churchill, 1940–41 and 1943–45.

on this subject recently, and he thinks that a loan of this type would of course be met by objections in the House, but it could be passed all the same.’ I raised my hands and said: ‘I still think it would be better not to awaken old ghosts.’