That blot on the peace of the world, the Treaty of Versailles, is vanishing, and for that I am thankful... France has again had a severe lesson, and I hope it will take it this time. In any event the folly of pandering to it by standing rigidly to the letter of Versailles or Locarno...must now be plain and this logical and legalistic nation should be brought to face reality.

This nation ought to be quipped to defend itself and to fulfil its responsibility under the League system of mutual assistance in the event of an aggressor coming to threaten us all. A defenceless Britain at this stage of evolution will not be an aid to peace but an incentive to war. But we must watch very closely lest the acceptance of the responsibility to prepare for defence may lead to a policy of militarism for its own sake. We draw this distinction and will continue to observe it.

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The channels of world trade are so obstructed by the pursuit of nationalist economic policy that steps should be taken at once to make it possible to arrive at an international economic agreement which would revive international trade. A return to free trade pure and simple would only increase unemployment.

I know that, when the troubled history of these times comes to be studied and recorded in the cold and just light of truth, all the blame will not lie at Germany's door. That will not save it, its methods and its self-will, as shown in these latter days, from the blame of destroying the chances of success in peacemaking which were once again presenting themselves to us, and of throwing the mind of Europe suddenly into anxiety and turning it back upon the fatal ways of militarism, thus compelling the nations of Europe to return for an evanescent comfort to increased military equipment.

My first grave doubts as to German diplomacy arose when Germany left the League of Nations for reasons which I have never been able to appreciate, except upon assumptions which meant that the German Government was indifferent to the pacification of Europe.

The most secure nation in the whole of Europe, until it roused suspicions and fears against itself, was Germany. The German people who believe stories of encirclement cannot help recognising that their latest policy of military expansion, together with the circumstances of its declaration—an army greater than that of any other nation in Europe, an air force already declared equal to ours, a fleet that would be equal to the French and superior to the Italian—must rouse fear and unsettlement in the mind of every nation at which it can strike, and inevitably force the sound pacific idea of general collective security into the dangerous form of military alliances. The nations which were backward in making their contributions are now congratulating themselves that they waited for Germany to make its contribution first.

The substance of Germany's general case has a background of reason and human nature. I cannot be accused of ever having approached it in the "mind of Versailles," nor in the spirit of one who assumed that a powerful and a proud people could be kept subordinate by force (even by what seems to be an overwhelming force), nor have I ever seen anything but disaster issuing from and to the League of Nations if it is used by victors to perpetuate the position and mind they were in on the day of their victory... But, be that as it may, Germany has acted in such a way as to destroy the feeling of mutual confidence in Europe. It has broken up the road to peace and has beset it with terrors. It claims a measure of armed power which puts most of the nations of Europe at its mercy. Every reflecting and reasonable German must see the force of the point I am making. He must know in his heart that Berlin is not enough—that, in fact, it has upset very much more than it has pacified.

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What we have to do is to doom the slums. And we have done it. It is going to take a year or two. We are not only going to doom slums, we are going to doom overcrowding. Next Session the House of Commons will...pass legislation which is going to doom overcrowding as we have already doomed the slums.

To-day, in spite of the prospects, our faith is undiminished. Our hearts may be sad—mine certainly is—but I have handed in none of my papers of enlistment in the Army of Peace. I am still in the ranks of that Army: a fighting soldier to remain there and act there and strive there as long as there is breath in my body and persuasion in my lips.

As far back as 1895 I stood as an unflinching opponent of the idea that the progress of Socialism could be made by the declaration of a class war. I have always been opposed to it, and I exemplify that opposition to-day. The only method of social progress is not by dividing society, but by uniting society and giving all of us the community-consciousness that asks us cooperators to reach the great and good state ahead of us.

You are faced with the problem of what to do in respect to this question, to that question, and to the other question, but perfectly obviously, after you have faced the more superficial aspects of the separate questions, you want to know in relation to a complete plan what you are actually giving and what you are actually getting. Therefore, when the departmental, or compartmental, exploration has gone on to a certain extent it cannot be finished until somebody, co-ordinating all your problems, sets out in one statement and declaration the complete scheme that this Conference can pass in order to give security, to give disarmament, to give hope to the future–until that scheme has been placed before you, you cannot complete your examination of compartmental problems and questions...

If I had only been able to carry my colleagues with me what we could have achieved! What a chance we had! But we threw it away. If they had only been straight enough to stand by what they had initiated, not what finally resulted from it—I am not saying that—I could have helped them. When they ran away and began to deny that they had ever had anything to do with our proposals, well, I thought to myself that politics had become too degraded for me. Do you know that they turned me out of the Labour Party with a rubber stamp? ... [W]hen I write my book on how the Labour Party betrayed Socialism I will tell the story there.

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