28 JUNE 1919, Page 1

The Allies have not indicated the a l ture of the reparation

which they will require for the Scapa outrage. Our own sugges- tion is that here is an excellent opportunity for revising the Peace terms in connexion with the Kiel Canal. In spite of a great deal of talk about the neutralization of this important waterway into the Baltic, the Canal was allowed after all to remain under purely German control. The accessibility of the Baltic is most important for both the prosperity and peace of Northern Europe. Neither is safe in German hands, and the placing of the Canal in the charge of the League of Nations, at all events for a term of years, would be a safeguard. Besides, it would be a very good thing for the League. The more the League has to do, the more it is likely to be kept alive and to

justify -its existence. .