The Naval Treaty Great Britain has used its reply, handed
in at Berlin on Wednesday, to Germany's denunciation of the Naval Agree- ment as an opportunity to reply to the charge of encircle- ment. Hostility to Germany is inevitable only if Germany attacks another country ; and only in these circumstances will British guarantees operate. This clear statement will hardly satisfy Germany ; it may have unfortunate effects on the Moscow talks, which are being held up partly by Russia's reasonable insistence that in these days aggression can take place without open attack. Given respect for the rights of others, the Memorandum states, Great Britain is ready to improve relations with Germany, and especially trade relations. This possibility, however, depends on the con- dition which the Memorandum lays down for the negotiation of another Naval Agreement with Germany ; that is that the Reich can produce guarantees that any agreements reached will not be subject to unilateral denunciation. The Memo- randum hardly removes any of the difficulties that impede better relations, but it exposes them with admirable clarity.
