Christian, although he was not quite sure to which confession they belonged.

MR. CLEMENCEAU said that the representative of Armenia had told him that he was a Gregorian, but he had been unable to explain to him what that meant.

MR. LLOYD GEORGE said that it was evident that the recognition "de facto" of the Daghestan which was asked of them might be as wise a step as that of Georgia and Azerbaidjan, especially on account of its buffer position between the North and the latter Republics; what they knew of the history of those countries showed the difficulties which had impeded the Russian armies in their march through the Caucasus. They were not asked for troops: That was a satisfactory point, and he thought that they might try to supply them with arms and munitions. The Caspian Sea fleet was in the hands of Denikin, and they had better send out 1500 sailors and ask Denikin to hand over his ships to them. They also had four British battalions at Bakou which might either remain there, if that proved to be useful, or be withdrawn. He was strongly in favor of the Daghestan's recognition: that step would give great satisfaction to the Mohammedans, as it would mean two Mohammedan Republics in that part of the world. The Allies also had plenty of munitions which they might send. The difficulty lay in finding transport for arms and munitions to be sent into these Republics.

MR. CLEMENCEAU remarked that he thought most of it had gone to the Soviets through Denikin's army.

MR. LLOYD GEORGE said that they might at least send a lot of clothes, etc.

MR. CLEMENCEAU said that it would be well to examine this question further.

The meeting then adjourned.

Appendix A to ICP-18

Report of Committee Appointed To Consider the Reopening of Certain Trading Relations With the Russian People

The Committee understands that it has been instructed to consider the practical details of a scheme for reconstructing trading operations with the Russian people without recognising officially the Bolshevist Government, and that in particular it is to examine how far it is possible for the cooperative organisations to assist in this process.

The following outline proposals, which are made after taking into consideration the suggestions put forward by M. Berkenheim 2 are

2 Alexander Berkenheim, Chief of the Foreign Directorate and Vice-president, All-Russian Central Union of Consumers' Societies.

recommended for adoption by the Conference on the assumption that direct communications between Allied countries and territories occupied by Bolshevist forces are practicable.

(1) The Allied Governments should inform the cooperative organisations that they are prepared to permit the exchange of goods, on the basis of reciprocity, between all Russia and Allied and neutral countries, and should invite these organisations to export surplus grain, food and raw materials from Russia so as to provide exchange for clothing and other goods needed by Russia.

(2) The cooperative organisations would then communicate by wireless with their headquarters in Moscow, and enquire whether the cooperative movement was prepared to undertake the responsibility for handling the export and import of goods and whether such exchanges were practically possible. Representatives of the Paris or London office of the Cooperative Organisations would at once proceed to Moscow to discuss details.

(3) The cooperative headquarters in Moscow would ascertain whether it would be permitted to export grain, flax, etc., and whether transport and other necessary facilities would be afforded to it.

(4) On receipt of a reply the cooperative headquarters would then communicate its decision to its Paris representatives.

(5) If the cooperative headquarters are prepared to undertake the responsibility, M. Berkenheim and the other officials of the cooperative organisation would then be prepared to make definite contracts to supply grain, flax, etc., from Russia, provided that they were financed at the beginning up to 25% of the full value of the contracts either direct or through British French or Italian cooperative organisations or private traders.

(6) The balance of the credits required, they would themselves provide from their own resources in London, Paris, etc., or by arrangement with the British French or Italian cooperative movement or private bankers or traders.

(7) They would immediately proceed to start the shipment of goods purchased with these credits to the Black Sea or the Baltic ports any loss falling on them if the goods were confiscated or destroyed.

(8) With regard to transport, the cooperative headquarters at Moscow would endeavor to secure at least four complete trains for use to and from the Black Sea ports. If this was impossible M. Berkenheim and his associates would utilise some of their credits for purchasing trucks and locomotives in allied countries. They would in any case send out a number of motor lorries to assist the railways.

(9) As soon as it became clear that grain started to be moved out of Russia and that the Bolshevists were offering no resistance, the

contracts would of course be considerably extended so as to cover the full amount of at least 1 million tons of grain which it is estimated can be exported within a reasonable time.

E. F. WISE

A. KAMMERER

DELLA TORRETTA

PARIS, January 15, 1920.

Appendix B to ICP-18

Draft of a Communiqué for the Press

The Supreme Council has taken up, and has attempted to remedy the cruel situation and isolated position of the populations in the interior Russia who are deprived of all manufactured products and supplies from abroad as a consequence of the profound internal disorganization reigning in Russia.

Qualified Representatives of the powerful Co-operative Societies whose organization and union extends to all the regions of Russia, and who have established a system of offices abroad, notably in London and Paris, have been in touch with the Council of the Allies. Their proposal to attempt to organize, apart from political interference, a regular exchange of merchandise (Russian cereals, food stuffs, and raw materials in exchange for clothing, shoes, manufactured products of all kinds, and medicines) has been taken up by the Supreme Council.

The humanitarian efforts in no way imply any modification in the policy of the Allies with regard to the Soviet Government. Only those directly concerned will, themselves, independent of any governmental action, endeavor to establish a current of exchanges which is essential not only for the well-being of the inhabitants, but for their very existence.

Appendix C to ICP-18

Press Communiqué re the Decision To Permit the Exchange of Goods on a Basis of Reciprocity Between the Russian People and Allied and Neutral Countries

With a view to remedying the unhappy situation of the population of the interior of Russia, which is now deprived of all manufactured products from outside Russia, the Supreme Council, after having taken note of the report of a Committee appointed to consider the re-opening of certain trading relations with the Russian

people, has decided that it would permit the exchange of goods on the basis of reciprocity between the Russian people and Allied and neutral countries. For this purpose it decided to give facilities to the Russian Co-operative Organizations which are in direct touch with the peasantry throughout Russia so that they may arrange for the import into Russia of clothing, medicines, agricultural machinery, and the other necessaries of which the Russian people are in sore need, in exchange for grain, flax, etc., of which Russia has surplus supplies.

These arrangements imply no change in the policy of the Allied Governments towards the Soviet Government.

PARIS, January 16, 1920.

Paris Peace Conf. 180.03801/6

ICP-19

Notes of a Meeting Held in M. Pichon's Room, Quai d'Orsay, Paris, Friday, January 16, 1920, at 4: 30 [2: 30] p. m.

The following were also present for questions in which they were concerned:

MR. CLEMENCEAU invited Count Apponyi, the President of the Hungarian Delegation, to address the Council.

COUNT APPONYI: Monsieur le Président and Gentlemen, I thank you once again for having accorded me the opportunity of addressing you. What I should like essentially is a discussion, which I consider is the only means of arriving at a clear perception and grasp of the complicated matters with which we have to deal. But, since the wish of the Supreme Council in that respect is definite, I can only accept their will; I accept the situation as it is offered to me, and, in order not to encroach too much upon your valuable time, I shall go right to the heart of my subject.

It is only since yesterday that the conditions of Peace have been officially made known to us. I feel how heavy is the immense responsibility that lies upon me at this moment when I must pronounce the first word of Hungary upon those conditions.