16 JANUARY 1904, Page 2

Mr. Balfour discussed nothing during his speech but fiscal reform,

but he apologised for not entering upon foreign affairs. His reason was that "while Great Britain will to the full carry out all her Treaty engagements and obliga- tions in regard to any of our allies," he felt that discussion on the differences between Russia and Japan would do but little service to the cause of peace. That significant sentence has been, of course, by this time widely read in Tokio, where it will act as an encouragement to the Japanese, who rely upon themselves, but hope none the less strongly that the Treaty which protects them from a coalition will neither be forgotten nor ignored.