Lenine professed belief that this defense was facilitated by the profound schism which divided the capitalistic Governments, by the fact that "the German bandits" were pitted against "the English bandits," and that there were economic rivalries between the American bourgeoisie and the Japanese bourgeoisie. "The situation is," said Lenine, "that the stormy waves of imperialistic reaction, which seem ready any moment to drown the little island of the Soviet Socialist Republic, are broken one against another." It was his intention to take full advantage of this situation, and to keep Russia out of the war for as long a time as possible, with a view to curing her economic wounds and building up her military power for the coming clash with world capitalism. Economic recuperation, in the largest sense of the word, was thus declared to be the immediate problem of the revolution. The expropriation of capital became a matter of secondary importance in comparison with the task of consolidating the gains of the proletariat and putting them to good use. "We have accomplished two tasks," said Lenine in concluding his speech before the Central Executive Committee on May 16. "We have seized the power, and we have divided it among all Russia. We point to the realization of the third and most difficult task, namely, the disciplining of the proletariat to such a degree that every corner of Russia shall be permeated thereby." NO PEACE WITH UKRAINE The Bolshevist Government made efforts to come to terms with the Ukraine, and also with Finland. In the middle of May a Russian peace delegation arrived in Kiev. Germany appointed Baron Mumm von Schwarzenstein, Ambassador to the Ukraine, as its representative to the peace conferences, with almost dictatorial powers, especially in questions relating to boundaries. The efforts of the Soviet Government to make peace with the Ukraine remained ineffectual. The delegates were unable to agree regarding the frontier line. Repatriation of Ukrainians living in Great Russia was another stumbling block. The removal of property by repatriated Ukrainians, it was objected, would conflict with the Soviet regulation allowing only small sums of money to be exported from Russia. Besides, said the Bolsheviki, this would give propertied Russians a simple means of escape from the Soviet Republic. According to a London dispatch, dated June 7, Germany was responsible for the delay in the negotiations. The German command at Kiev was reported to have declared Russo-Ukrainian peace inopportune before all important points in the Ukraine were occupied.