The Mistake of Versailles
These are the two aspects I wanted to bring before you. If we are to get down to the root of the matter; if we are to uproot the old jungle theory of international relations, we must recognise that the chief danger and difficulty before us is what may be described as excessive nationalism. We have to recognise in this and other countries that a mere belief in narrow national interests will never really take you anywhere. You must recognise that humanity can only exist and prosper as a whole, and that you cannot separate the nation in which you live, and say you will work for its prosperity and welfare alone, without considering that its prosperity and welfare depend on that of others. And the differences on that point go right through a great deal of the political thought of the day.
Take the question of reparations. I am not going to discuss in detail what ought to be done in that difficult and vexed question, but I want to call your attention to the mistake which was originally made, and which we have never yet been able to retrieve. The fundamental error of Versailles was the failure to recognise that even in dealing with a conquered enemy you can only successfully proceed by co-operation. That was the mistake—the idea that the victorious Powers could impose their will without regard to the feelings and desires and national sentiment of their enemy, even though he was beaten. For the first time in the history of peace conferences, the vanquished Power was not allowed to take part in any real discussion of the terms of the treaty. The attitude adopted was, “These are our terms, take or leave them, but you will get nothing else.” No attempt was made to appreciate, or even investigate the view put forward by the Germans on that occasion. And last, but not least, they were most unfortunately excluded from membership of the League at that time. I felt profoundly indignant with the Germans and their conduct of the war. I still believe it was due almost exclusively to the German policy and the policy of their rulers that the war took place, and that it was reasonable and right to feel profound indignation, and to desire that international misdeeds of that character should be adequately punished. But what was wrong was to think that you could as a matter of practice or of international ethics try to impose by main force a series of provisions without regard to the consent or dissent of the country on which you were trying to impose them. That is part of the heresy that force counts for everything. I wish some learned person in Oxford or elsewhere would write an essay to show how little force has been able to achieve in the world. And the curious and the really remarkable thing is that it was this heresy which brought Germany herself to grief. It is because of the false and immoral belief in the all-powerfulness of force that Germany has fallen, and yet those opposed to Germany, though they conquered her, adopted only too much of her moral code.
It was because the Allies really adopted the doctrine of the mailed fist that we are now suffering from the terrible economic difficulties and dangers which surround us. I venture to insist on that now, because there are a large number of people who have not abandoned that view. There are still a number of people who think the real failure that has been committed is not that we went wrong, as I think, in our negotiations at Versailles, but that we have not exerted enough force, and that the remedy for the present situation is more threats of force. I am sure it won’t answer. I want to say that that doctrine is just as pernicious when applied to France as when applied to Germany. You have made an agreement. You have signed and ratified a treaty; you are internationally bound by that treaty. It is no use turning round and with a new incarnation of the policy of the mailed fist threatening one of your co-signatories that they are bound to abandon the rights which you wrongly and foolishly gave to them under that treaty.
I am against a policy based on force as applied to Germany. I am equally opposed to a policy based on force as applied to France. If we really understand the creed for which we stand, we must aim at co-operation all round. If we have made a mistake we must pay for it. If we are really anxious to bring peace to the world, and particularly to Europe, we must be prepared for sacrifices. We have got to establish economic peace, and if we don’t establish it in a very short time we shall be faced with economic ruin. In the strictest, most nationalistic interests of this country, we have to see that economic war comes to an end. We have got to make whatever concessions are necessary in order to bring that peace into being.
Economic Peace
That is true not only of the reparation question; it is true of our whole economic policy. We have been preaching to Europe, and quite rightly, that the erection of economic barriers between countries is a treachery to the whole spirit of the League of Nations, and all that it means, and yet with these words scarcely uttered we turn round and pass through Parliament a new departure in our economic system which is the very contradiction of everything we have said in international conference.
The Safeguarding of Industries Act is absolutely opposed to the whole spirit and purpose which the League of Nations has in view. A reference was made by your chairman to Lord Grey, and I saw in a very distinguished organ of the Coalition an attack on his recent speech. We are told that he ought not at this crisis to be suggesting that the present Government is not worthy of our confidence, but how can we trust the present Government? How is it possible to trust them when one finds at Brussels, at Genoa, at the Hague, and elsewhere they preach the necessity of the economic unity of Europe, and then go down to the House of Commons and justify this Act on the strictest, the baldest, the most unvarnished doctrine of economic particularism for this country? Nor does it stop there. I told you just now that for me this doctrine on which the League is based goes right through many other problems than those of a strictly international character. You will never solve Indian or Egyptian difficulties by a reliance on force and force alone. I believe that the deplorable, the scandalous condition to which the neighbouring island of Ireland has been reduced is largely due to the failure to recognise that by unrestricted unreasoning, and sometimes immoral force, you cannot reach the solution of the difficulties of that country.
And in industry it is the same thing. If you are really to get a solution of these great problems, depend upon it you will never do it by strikes and lock-outs. I am an outsider in industrial matters. I am reproached when I venture to say anything about them with the observation that I am no business man. I can only hope that in this case lookers-on may sometimes see most of the game. But to me it is profoundly depressing when I see whichever section of the industrial world happens to have the market with it—whether employers or wage-earners—making it its only concern to down the other party as much as it can. You will never reach a solution that way. You have to recognise in industrial as in international affairs that the spirit of co-operation, the spirit of partnership, is your only hope of salvation.