A.G. is satisfied with his trip to the USSR, but now he is preoccupied with a very difficult problem: how to expand Anglo-Soviet trade. What do I think about it?

I replied that I evaluate the situation thus: (1) Anglo-Soviet trade based on the current trade treaty is nearing its natural limits; (2) further trade expansion is feasible if the USSR is afforded serious credit opportunities; (3) the system of Anglo-Soviet trade financing through the export department of the Trade Ministry has become outdated; we prefer buying for cash, which means that we are limited in the scope of our purchases by current revenues from export and gold-mining; (4) if the British government really wishes to expand Anglo-Soviet trade, it should think about granting the USSR a long-term loan. We ourselves shall not take the initiative in this, for on the whole we are satisfied with the current state of affairs.

A.G. agreed with me and himself began to dwell on the necessity of granting a loan to the USSR. The trouble is, what to do with the old claims? If the old claims are not liquidated, it will be impossible to pass a loan in parliament.

I answered: ‘Don’t disturb old ghosts.’ Debts and claims are highly unpopular in the USSR. Moreover, they bring back the spectre of intervention in the minds of the Soviet masses and stir up old, now half-forgotten feelings of hatred towards the interventionists, including England. What would be the point? Who needs it?…

A.G. rubbed the bridge of his nose and confessed I was right, while stating, on the other hand, that some elimination of ‘old ghosts’ was inevitable, otherwise they would always lie in our path. Summing up, he said: ‘We need to give it some thought! We might think up some wheeze or other…’

I wished A.G. every success.