21 SEPTEMBER 1918, Page 2

The first reply from the. Arnett to Austria was made

by Mr. Balfour, speaking without formal consultation with his colleagues, at a lunoheon to the Oversee Press representatives on Monday. He said that irresponsible- conversations with the enemy would be useless. The CentralTowers had never made any definite proposals for peace or defined their terms, whereas the Allied war aims were perfectly well known. Mr. Balfour referred to the bellicose speech of Herr von Payer, the German Vioe-Chaneellor, to. show how impassable a gulf divides Germany from the Allies. He mentioned especially the ex-German colonies, Alsace-Lorraine, and Russia as questions on which compromise was impossible. The enemy's sole object was to sow dissension among the Allies, but he would find that impossible.