21 DECEMBER 1934, Page 1

The End of the Naval Talks The naval talks between

this country, the United States and Japan have ended, and nothing is gained by attempts to conceal their complete failure. They might quite well have ended sooner, for they have led to no approach to an understanding, and Japan is on the point of denouncing the Washington Treaty, which will therefore cease to be operative on December 81st, 1986. That leaves plenty of time for fresh conversations, but there will be nothing gained by entering on them till there is some indication through ordinary diplomatic channels that a basis of possible agreement exists. Every conceivable solution has been canvassed in the past few weeks, and till one or more of the parties is prepared to accept proposals that it has so far rejected there can be little hope of progress. But factors external to the conversations, such as Japan's growing financial difficulties, and the tendency of the United States to associate herself more openly with League of Nations States by such steps as a revision of her attitude on neutrality, may change the situation considerably in the course of the next six months. The keynote of British policy must be the maintenance of the closest possible understanding with the United States—an attitude. perfectly consistent with normal cordiality towards Japan.