Referring to the fact that the present British Government been in office four years, he saids "The history of these four years in Europe has been a history of the tubilization and reconstruction of 8 policy based upon and rendered possible by two outstanding events =the London Agreement, to which great credit was duc to' my predecesser, which placed the reparations problem on a workable econ-amic basis and removed it out of the cockpit of political controversy and animosities; and, secondly, the Treaty of Locarno, which termina ed once and for all the war period and reintroduced Germany to the comity of nations, "Tt is true since then there have sheen no sensational spectacular achievements such as those were, ut the contrast between now and four years ago isa very real one.
"Enmities in Europe have di appeared of are disappearing, war wounds have healed or are healing, currencies have been stabilized and, though there are grave economic problems still to be solved, their solution is being approached in a new spirit of goodwin The Lesson of Conciliation "Phere is more and more throughout Europe and_ throughout ° the world today a feeling of the necessity of the nations getting closer and closer together.
"We were divided four yea into camps, victors and vanquished. That afstinction exists no longer. T hope those words will be forgotten. We have all learnt the lesson of "conciliation, ce-operation and good-will, without which progress in the world is impossible.—We have learned our lesson, all of us, in a hard school; but I believe we have Tearned it in such a wary that we shall not forget it.
"With France we have sought the closest ce-operation and a progress sive improvement has taken place during the last five or six years in our relations, which had been marked by certain vicissitudes after the War, but now all that is far behind for we understand each other perhaps better than we have ever done "On the contrary, the expansion of that ce-operation into the wider ce-operation of Locarno will form the keystone of the European arch and it still constitutes the policy of His Majestys Government.
"Peace means not less collaboration but more, and the fact that His Majesty's Government so often regin by seeking collaboration with their nearest neighbour does not mean that they are in the slightest degree less enger to ce-operate with others."
Reviewing the reconstruction efforts and the measures of success attending them of the nations which suffered by the War, the Pre~ mier spoke notably of the progress made by France, Belgium and Ger-
Text read from the printed page and cleaned; old type leaves the occasional error.