30. Lieut.-Colonel MALONEasked the Prime Minister whether he is aware that certain members of the co-operative societies were hoping to utilise the support of the Allies and their approval for trading with the Bolsheviks to reintroduce the capitalist system into Soviet Russia; and if this is what was meant by the statement issued from the Supreme Council in Paris that the Allies had not changed their policy towards the Soviet Government?
§ The PRIME MINISTERThe answer to both parts of the question is in the negative.
31. Lieut.-Colonel MALONEasked the Prime Minister whether he is aware that the co-operative societies in Russia have had their capital repaid in full by the Soviet Government, thus nationalising the whole co-operative system: and whether it is therefore now necessary to negotiate direct with the Soviet Government in order to open up the commercial relations which he has stated to be essential to relieve the economic situation?
§ The PRIME MINISTERIt is under stood that the co-operative organisations have been and are being used as distributing 1885 and collecting agencies by the Soviet Government in addition to their other function.
I have no information bearing on the financial relations involved, but negotiations are at present proceeding for the re-opening of commercial relations between the co-operative representatives of this country and the co-operative organisation in Moscow.