The continued occupation of the Rhineland after the Germans had carried out their obligations was an infringement of a solemn treaty. Germany had carried out in letter and in spirit the whole of her engagements with regard to disarmament. What had the Allies done? Nothing... The Anglo-French Pact was the most sinister event since the War.

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I am making no predictions and the Prime Minister is wise in taking that line, but I am perfectly certain that nothing will enable the German Empire for a generation or two to get anywhere near the same position of dominant force and menace that it was in before the War. I do not say they desire it—I do not believe there is any such desire in Germany at the present moment.

We are not in the moral position to enforce disarmament in Europe until we cut down our own expenditure at home... I say, quite frankly, that we must take the same risks for peace as we took for war. You must take some risks. Personally, I do not see where the risks are. I do not see an enemy on the horizon. These enemies do not develop very suddenly. They develop over a whole course of years; but I do not see where the enemy is now.

As long as you have these huge armaments in the world, arbitration and conciliation will be made quite impossible, and that is common sense, because if you have a nation that has got overwhelming power behind it, it is intolerant, it is impatient of argument and of conference. That is really what led very largely to the Great War.

What is the trouble in Europe today? Immediately after the War the danger was Communism. The danger today is an aggressive nationalism. It is the trouble which you get in Italy and South-Eastern Europe. It is the trouble which you get in the Balkans. It is the trouble which you have got on the Eastern Frontier of Germany, where there is a much more powerful party than the Communist party in favour of aggressive action. That is the trouble today, and into this troubled Europe...you throw this stone, this bone of contention. It is a leap in the dark and a leap into a whirlpool.

He...burst into an enthusiastic defence of the system of raising Party funds by the sale of honours. "You and I," he said, "know perfectly well it is a far cleaner method of filling the Party chest than the methods used in the United States or the Socialist Party." He complained that the Socialist Party was a trade union party solely because of the power of the trade unions to withhold funds. "In America the steel trusts supported one political party, and the cotton people supported another. This placed political parties under the domination of great financial interests and trusts." "Here," said Mr. Lloyd George, "a man gives £40,000 to the Party and gets a baronetcy. If he comes to the Leader of the Party and says I subscribe largely to the Party funds, you must do this or that, we can tell him to go to the devil. The attachment of the brewers to the Conservative Party was the closest approach," said Mr. Lloyd George, "to political corruption in this country. The worst of it is that you cannot defend it in public, but it keeps politics far cleaner than any other method of raising funds."

The Chinese were highly civilised when the ancient Britons, to whom he belonged, were barbarian. This was an old, enlightened, and vast community of hard-working people, yet they were deprived of rights enjoyed by some of the smallest nations in the world that only a few centuries ago emerged from savagery.

If we had been as ready in 1924 with definite concrete proposals as we are today, we could have gone to the Labour Party and said: "Here are our proposals with regard to the land, electricity, and the mines, and the condition of our support is that you should deal with them." We should have now been in the third year of carrying out a great programme of social reform instead of being in the horrible muddle we are in at the present moment. Are we going to get another chance? I think we are.