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A little deformed gentleman in iron-gray is reading the Morning Chronicle newspaper by the fire, while a divine, with a broad brogue and a shovel hat and cassock, is talking freely with a gentleman, whose star and ribbon, as well as the unmistakable beauty of his Phidian countenance, proclaims him to be a member of Britain's aristocracy.

I believe that the American position as regards this matter is right; but I also believe that under the arbitration treaty we are in honor bound to submit the matter to arbitration in view of Great Britain's contention although I hold it to be an unwise contention that our position is unsound.

We climbed 1,000 feet higher, then began to descend, and presently got down to Darjeeling, which is 6,000 feet above the level of the Plains. We had passed many a mountain village on the way up, and seen some new kinds of natives, among them many samples of the fighting Ghurkas. They are not large men, but they are strong and resolute. There are no better soldiers among Britain's native troops.

At length, everything being ready on his side, on 9th October President Kruger issued an ultimatum, demanding the withdrawal of Great Britain's troops within forty-eight hours. This was a declaration of war.

A Government that is surprised in a matter relating to war is already half defeated. The creation of the German navy is the creation of means that could be used to challenge Great Britain's sea power and all that depends upon it. There has been no such challenge these hundred years, no challenge so formidable as that represented by the new German fleet these three hundred years.

The khedivial dynasty was, to be sure, retained, and the native forms of government respected, but all real power centred in the hands of the British "Financial Adviser," the representative of Britain's imperial will. For twenty-five years Lord Cromer ruled Egypt, and the record of this able proconsul will place him for ever in the front rank of the world's great administrators.

But there can be no doubt that Britain's hold on Persia is gravely shaken, and she may soon be compelled to evacuate the country, with the possible exception of the extreme south. Turning back to the autumn of 1920: the position of England and France in the Near East had become far from bright.

The Athenian fleet was therefore never the danger to the Macedonians that Nelson and Sir Sidney Smith were to Bonaparte. Since the French armada weighed anchor at Toulon, Britain's position had became vastly stronger.

The Civil War determined the issue in favour of the North: the natural process of tribal disruption was declared illegal. Lloyd George's task was of a different nature. He touched and wakened Britain's sleeping tribal instincts with the insight of genius.

Given the fact and theory of political relationship as they existed in this period, this compromise was the natural result. Under the old colonial system the empire was Britain's, governed for its real or fancied gain, and imperial defence was merely the debit side of colonial trade monopoly.