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have the right and the possibility to make terms. We should insist on the working-classes of Western Germany, France and Italy being decently paid, otherwise economic union with those countries means a serious threat to the standard of living of our own workers. We must insist on the United States with- drawing their veto on the working-class parties in France and Italy participating in the government of their countries, if and when that is desired by the majority of their colleagues in Parliament or by a majority of the electors. That is a condition without which we cannot get co-operation and confidence of the workers, and without that we cannot get reconstruction in those countries. We should also insist on the introduction of sufficient elements of Socialism into the political economies of Western Europe as a condition for our joining up with them, otherwise our own planned economy will suffer.

Mr. Crossman: The hon. Member has now told us his positive policy, which is interesting us a great deal. It insists upon three things, but I want to know what happens when the Western Europeans, having listened to our "insists," do not take our point of view? It is awfully easy to give a whole list of "insists."

Mr. Zilliacus: I started by saying that our co-operation is essential. Therefore, if we insist upon certain conditions, we can reach a compromise in the negotia- tions with those countries on all these conditions; if not, we had better stay half out, as we are doing today. These are conditions for going in further than we are doing at the present time. We are being accused by the Americans of dragging our feet and not going in further, but the answer should be to formulate the positive conditions on which we are prepared to go in all the way. We must also request the United States to with- draw their veto on freedom of trade with Western and Eastern Europe and our right to co-ordinate our plans with Eastern Europe.

Mr. Stokes (Ipswich): There is no veto.

Mr. Zilliacus: We must use our strength and not weaken the European Economic Commission of the United Nations as the co-ordinating organ for this purpose.

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In the case of Germany, the only way to break the deadlock now is to go back to the principles enunciated by the Foreign Secretary, the principles of a united Germany, of socialisation of the heavy industries of Germany, Four-Power control of the industries in the Ruhr and a moratorium on reparations until Ger- man production has been

been at least doubled, and then for a certain amount to be paid out of current production for a limited number of years. These are the preliminary conditions for the withdrawal of the zonal barriers, for setting up a cen- tral administration and holding elections for an all-German Government, and for the withdrawal of forces from Germany, perhaps to be substituted by an inter- national force. The deadlock in Berlin can be solved only as part of that wider policy.

As for the Middle East, we ought to recognise the state of Israel with the boundaries assigned to it by the United Nations, and we ought to admit it to membership of the United Nations. We should stand for having an international police force in the Middle East, includ- ing participation of the Soviet Union and demilitarisation of the Middle East, except for such forces as might be inter- nationally agreed upon through the Security Council. The Suez

Suez Canal and the Dardanelles should be under international control; there should be international control of oil resources and economic development schemes in the Middle East. All these arrangements should be worked out through and placed under the guarantee of the United Nations.

Intervention in Greece is a by-product of the return to the Crimean War policy in the Middle East. The whole point of intervention would cease to exist if we adopted a Middle East policy bringing both the Soviet Union and the United States into partnership through the United Nations. We could then either get out of Greece or make a new start, based on the principles of the Crimean Conference of 1945.

On these lines, we should get the sup- port of the whole of the European work- ing-classes, Communist and non-Com- munist alike. On these lines, we should get such a volume of support in France and Italy, who are both extremely un- happy about the present situation-Italy