Mr. Balfour made an excellent and manly speech on Wednesday
to the Australian and New Zealand Luncheon Club. The British Empire, he said, was Imperial but not Imperialistica useful and vital distinction which is too often obscured. To maintain and improve the relations between the free peoples of the Empire its sea communications must be secured from the risk of attack. For that reason, said Mr. Balfour, it was wholly. inconsistent with the security and unity of the Empire that the ea-German colonies, should be returned to Germany, to be used as bases for piratical warfare, according to the plans of Dr. Soli and other German authorities. The civilized world, Mr. Balfour added, was just ges much interested as the British Empire in keeping the sea highways free from the menace of German barbarism. When the Allies as a body announce their minimum. terms of peace, as we hope they will do very soon, it must be made clear that Germany has lost her colonies for good,