ECONOMIC INTERESTS OF RUSSIA The Russian groups and their ideologists put forward the economic interests of Russia, which, they say, do not in any way permit the separation of Latvia. “Russian foreign trade,” says Mandelstam (_Memorandum on the Delimitation of the Rights of States and Nations_), “was principally sea-borne; from this point of view the Baltic ports were of the highest importance to it” (p. 58). “The complete separation of the Baltic provinces from Russia would put this latter in an extremely difficult and grave situation, by depriving her of her outlets in the Baltic, which are not only the most important but also the only practicable ones in the winter” (p. 60). The fact in itself is certainly correct. Before the war almost half of the imports and more than two-fifths of the exports of European Russia by sea passed through the great ports of Latvia: Riga, Libau, Windau. But who would suppose that Latvia will close her ports to the transit trade of Russia? On the contrary, Latvia understands quite well that she is the natural intermediary between East and West, and will, in her own interests, do her best by every means to encourage trade with Russia. The natural destiny of Latvia is to be a storehouse for goods coming from the West to Russia and _vice versa_. And everything makes us believe that Latvia will be in a position to perform that rôle better than Russia herself. The chief conditions required by commerce are the following: Suitable technical establishments, simple and precise juridical relations, and lastly, order and tranquillity. Russia has not been able to provide these conditions. To be satisfied of this, one has but to remember the wretched equipment of the ports, so disproportionate to their world-importance, the miserable state of the railways, the lack of means of transport, the abuses and disorder. Judicial relations were regulated by laws dating almost from the Flood, the same for the Russian villages as for the towns of universal importance, laws which would much better have suited the former alone. The proceedings at the courts of law were of fabulous duration; the code of laws affecting commercial houses and companies was out of date; conditions of credit were of the worst; and, in consequence, Germany, which enjoys the ability to accommodate herself to all the Russian conditions, increasingly invaded the economic life of the Baltic Sea, dispersing the competition of others. No, it was neither Russian firms nor capital which prevailed there, but those of Germany, and the watchword came not from Petrograd but from Berlin. Russia would not have succeeded as quickly as Latvia in freeing herself from the preponderating influence on the shores of the Baltic. That is why Russia’s interests will in no way suffer if the intermediary’s rôle is played neither by her nor Germany, but by those who are familiar with the Baltic, whom nature has attached to it, and who consequently have natural rights to it.