18 DECEMBER 1926, Page 2

Lord Grey went on to say that it was an

unwholesome thing for party headquarters to be dependent on a fund supplied by one person. That was a new situation " disturbing to the politics of the country." Again, he did not like the suggestion that the Liberal ideal for the next election should be to hold the balance of power in Parliament and insist upon terms with the Labour Party. If that were done the Liberal Party would become odious to the whole country. He regarded Mr. Lloyd George's recent speech on China as detrimental to British interests. and likely to make a settlement more difficult. British policy was already being unfairly represented in China, and it was most unfortunate that any leading public man in this country should have helped the misrepresentations. Although he could not say that there was unity when there was no unity he recommended that all Liberals should " go ahead in their own way " with Liberal work. It was by asserting Liberal principles in large public issues that fresh unity could ultimately be obtained.