21 JANUARY 1922, Page 2

Lord Derby elaborated his views in a conversation which the

London correspondent of the Journal reported on Monday. He declared that the Franco-British agreement ought to be as simple as possible. The alliance would " create the friendly atmosphere necessary for the settlement of all the problems that we have to settle." France would be left free to fix the strength of her own armaments. As for reparation, " Germany ought to pay all that she can humanly pay," but it was a matter of life and death for us to reopen Europe to trade. Great Britain could not guarantee that France should lose nothing in the way of reparation, but we should do our best to prevent any reduction of the guarantees and rights secured to France by the Versailles Treaty.