6 AUGUST 1921, Page 3

But in truth the whole of our naval policy depends

upon our coming to a complete agreement with America in regard to the Pacific. The fate of the Empire and the peace of the world hinge upon that understanding being not conditional but absolute. That is why we have so passionately desired and urged the abrogation of the Anglo•Japanese Alliance. That Alliance was bound to be an obstacle to a perfect understanding with America. It is proving so, indeed, at this very moment. It is no use to mince matters. We and the Americans must. agree that they shall look after the Pacific and we after the Atlantic.