We are agreed upon the aforementioned basis of no indemnities and no annexations, and have in the main arrived at a settlement on the point that trade relations are to be re-established with the new republic, as also on the manner of so doing.

But this very case of the Ukraine illustrates one of the prevailing difficulties.

While the Ukraine Republic takes up the position of being entirely autonomous and justified in treating independently with ourselves, the Russian delegation insists that the boundaries between their territory and that of the Ukraine are not yet definitely fixed, and that Petersburg is therefore able to claim the right of taking part in our deliberations with the Ukraine, which claim is not admitted by the members of the Ukraine delegation themselves.

This unsettled state of affairs in the internal conditions of Russia, however, gave rise to very serious delays.

We have got over these difficulties, and I hope that in a few days' time we shall be able once more to resume negotiations.
"As to the position to-day, I cannot say what this may be.