The people inhabiting it [<nowiki/>Palestine] are predominantly Muslim Arabs, and they demand freedom and unity with their fellow-Arabs of Syria. But the British policy has created a special minority problem here – that of the Jews – and the Jews side with the British and oppose the freedom of Palestine, as they fear that would mean Arab rule.....On the Arab side are numbers, on the other side great financial resources and the world-wide organization of Jewry...... The Jews are a very remarkable people. Originally they were a small tribe, or several tribes, in Palestine, and their early story is told in the old Testament of the Bible. Rather conceited they were, thinking of themselves as the Chosen People, But this is a conceit in which nearly all people have indulged...... They [British] declared it was their intention to establish a “Jewish National Home” in Palestine. This declaration was made to win the good will of international Jewry, and this was important from the money point of view. It was welcomed by most Jews.

In spite of this general progress and development, the Soviet Union passed throught a severe internal crisis during this period... It is difficult for me to express a definite opinion about these trials or the events that led up to them, as the facts are complicated and not clear. But it is undoubted that the trials disturbed large numbers of people, including many friends of Russia, and added to the prejudice against the Soviet Union. Close observers are of opinion that there was a big conspiracy against the Stalinist regime and that the trials were bonafide. It also seems to be established that there was no mass support behind the conspiracy, and that the reaction of the people was definitely against the opponents of Stalin. Nevertheless, the extent of the repression, which may have hit many innocent persons also, was a sign of ill-health, and injured the Soviet's position internationally.

Great progress was made and the standards of life went up, and are continually going up. Culturally and educationally, and in many other ways, the advance all over the Soviet Union has been remarkable. Anxious to continue this advance and to consolidate its socialist economy, Russia consistently followed a peace policy in international affairs. In the League of Nations it stood for substantial disarmament, collective security, and corporate action against aggression. It tried to accommodate itself to the capitalist Great Powers and, in consequence, Communist Parties sought to build up 'popular fronts' or 'joint fronts' with other progressive parties.

The Soviet Union in Europe and Asia stands today a continuing challenge to the tottering capitalism of the western world. While trade depression and slump and unemployment and repeated crises paralyse capitalism, and the old order gasps for breath, the Soviet Union is a land full of hope and energy and enthusiasm, feverishly building away and establishing the socialist order. And this abounding youth and life, and the success the Soviet Union has already achieved, are impressing and attracting thinking people all over the world.

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The conflict between capitalism and democracy is inherent and continuous; it is often hidden by misleading propaganda and by the outward forms of democracy, such as parliaments, and the sops that the owning classes throw to the other classes to keep them more or less contented. A time comes when there are no more sops left to be thrown, and then the conflict between the two groups comes to a head, for now the struggle is for the real thing, economic power in the State. When that stage comes, all the supporters of capitalism, who had so far played with different parties, band themselves together to face the danger to their vested interests. Liberals and such-like groups disappear, and the forms of democracy are put aside. This stage bas now arrived in Europe and America, and fascism, which is dominant in some form or other in mast countries, represents that stage. Labour is everywhere on the defensive, not strong enough to face this new and powerful consolidation of the forces of capitalism. And yet, strangely enough, the capitalist system itself totters and cannot adjust itself to the new world. It seems certain that even if it succeeds in surviving, it will be but another stage in the long conflict. For modern industry and modern life itself, under any form of capitalism, are battlefields where armies are continually clashing against each other.

Soviet Russia has been behaving internationally very much as a satisfied Power, avoiding all trouble, and trying to keep peace at all costs. This is the opposite of a revolutionary policy which would aim at fomenting revolution in other countries. It is a national policy of building up socialism in a single country and avoiding all complications outside. Necessarily, this results in compromises with imperialist and capitalist Powers. But the essential socialist basis of Soviet economy continues, and the success of this is itself the most powerful argument in favour of socialism.

The old palaces of the Tsars and the nobility have now become museums and rest-houses and sanatoria for the people... I suppose the old palaces now serve the purpose of children and young people. Children and the young are the favoured persons in Soviet land today, and they get the best of everything, even though others might suffer lack. It is for them that the present generation labours, for it is they who will inherit the socialised and scientific State, if that finally comes into existence in their time.

Work remains, and must remain, though in the future it is likely to be pleasanter and lighter than in the trying early years of planning. Indeed, the maxim of the Soviet Union is: 'He that will not work, neither shall he eat.' But the Bolsheviks have added a new motive for work: the motive to work for social betterment. In the past, idealists and stray individuals have been moved to activity by this incentive, but there is no previous instance of society as a whole accepting and reacting to this motive. The very basis of capitalism was competition and individual profit, always at the expense of others. This profit motive is giving place to the social motive in the Soviet Union and, as an American writer says, workers in Russia are learning that, 'from the acceptance of mutual dependence comes independence from want or fear'. This elimination of the terrible fear of poverty and insecurity, which bears down upon the masses everywhere, is a great achievement. It is said that this relief has almost put an end to mental diseases in the Soviet Union.

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The tremendous growth of the Soviet Union was in itself a remarkable sign of prosperity. It was not due, as in America, to immigration from outside. It showed that in spite of the privations and hardships of the people there was, as a general rule, no actual starvation. A severe system of rationing managed to supply the absolutely necessary articles of food to the population. Competent observers tell us that this rapid growth of population is largely due to a feeling of economic security among the people.

But, as I have told you, this Five Year Plan brought much suffering, and difficulties and dislocation. And people paid a terrible price willingly and accepted the sacrifices and sufferings for a few years in the hope of a better time afterwards; some paid the price unwillingly and only because of the compulsion of the Soviet Government. Among those who suffered most were the kulaks or richer peasants. With their great wealth and special influence, they did not fit into the new scheme of things. They were capitalistic elements which prevented the collective farms from developing on socialist lines. Often they opposed this collectivization, sometimes they entered the collectives to weaken them from inside or to make undue personal profit out of them. The Soviet Government came down heavily on them. The Government was also very hard on many middle-class people whom it suspected of espionage and sabotage on behalf of its enemies. Because of this, large numbers of engineers were punished and sent to gaol.

But the privation, especially of the upper and middle-class peasantry, was very great, and often it seemed that the whole ambitious scheme would collapse, and perhaps carry the Soviet Government with it. It required immense courage to hold on. Many prominent Bolsheviks thought that the strain and suffering caused by the agricultural programme were too great and there should be a relaxation. But not so Stalin. Grin-fly and silently he held on. He was no talker, he hardly spoke in public. He seemed to be the iron image of an inevitable fate going ahead to the predestined goal. And something of his courage and determination spread among the members of the Communist Party and other workers in Russia.

Nations have, in the past, concentrated all their efforts on the accomplishment of one great task, but this has been so in times of war only. During the World War, Germany and England and France lived for one purpose only - to win the war. To that purpose everything else was subordinated. Soviet Russia, for the first time in history, concentrated the whole strength of the nation in a peaceful effort to build, and not to destroy, to raise a backward country industrially and within a framework of socialism.

"For Russia, therefore, this building of heavy industries at a tremendous pace meant a very great sacrifice. All this construction, all this machinery that came from outside, had to be paid for, and paid for in gold and cash. How was this to be done? The people of the Soviet Union tightened their belts and starved and deprived themselves of even necessary articles so that payment could be made abroad. They sent their food-stuffs abroad, and with the price obtained for them paid for the machinery. They sent everything they could find a market for: wheat, rye, barley, corn, vegetables, fruits, eggs, butter, meat, fowls, honey, fish, caviare, sugar, oils, confectionery, etc. Sending these food articles outside meant that they themselves did without them. The Russian people had no butter, or very little of it, because it went abroad to pay for machinery. And so with many other goods...

This Five Year Plan had been drawn up after the most careful thought and investigation. The whole country had been surveyed by scientists and engineers, and numerous experts had discussed the problem of fitting in one part of the programme into another. For, the real difficulty came in this fitting in... But Russia had one great advantage over the capitalist countries. Under capitalism all these activities are left to individual initiative and chance, and owing to competition there is waste of effort. There is no co-ordination between different producers or different sets of workers, except the chance co-ordination which arises in the buyers and sellers coming to the same market... The Soviet Government had the advantage of controlling all the different industries and activities in the whole Union, and so it could draw up and try to work a single co-ordinated plan in which every activity found its proper place. There would be no waste in this, except such waste as might come from errors of calculation or working, and even such errors could be rectified far sooner with a unified control than otherwise.