6 JANUARY 1917, Page 10

With so much of preface, the Allies reject in plain

terms . the proposal to -negotiate :-

" Once again the Allies declare that no peace is possible so long as they have not secured reparation of violated rights and liberties, recog. ration of the principle of nationalities, and of the free existence of small states ; so long as they have not brought about a settlement calculated to end, once and ior all, forces which have constituted a perpetual menace to the. nations and to afford the only effective guarantees for the. future security of the world."