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 Rh lasting good can result so long as the present causes of progressive impoverishment continue to operate. It is only in the productivity of Russia that there is any hope for the Russian people and it is idle to expect resumption of trade until the economic bases of production are securely established. Production is conditioned upon the safety of life, the recognition by firm guarantees of private property, the sanctity of contract and the rights of free labor.

If fundamental changes are contemplated, involving due regard for the protection of persons and property and the establishment of conditions essential to the maintenance of commerce, this Government will be glad to have convincing evidence of the consummation of such changes, and until this evidence is supplied this Government is unable to perceive that there is any proper basis for considering trade relations.

A few words have been italicized as indicating either features of the Note that were relatively unnoticed or features of especial importance in connection with the data presented in the present volume.

Disturbed by the vast pro-Soviet agitation, falsely labeled "campaign for the restoration of trade relations" which was being carried on in the labor unions—in spite of Secretary Hughes' Note—President Gompers then addressed a letter to the Secretary asking for full information as to the facts in the case. The Secretary's answer to this letter, together with his Note written a few weeks earlier, when taken together, give a clear and positive statement of the American policy. (We quote the two letters at length in a later chapter in discussing the Russian trade question.) In his letter to President Gompers, Mr. Hughes points out the impossibility of aiding the Russian people or of