THE PEACE SETTLEMENT.
 
METHODS FOR SECURING A CO-OPERATIVE PEACE.
 
 
     In an earlier memorandum the practicability of
 
what were there described as Group A or Group B ideas was
 
discussed. The conclusion reached being that, if regard
 
is paid to the whole of the facts, a co-operative peace,
 
in which an un-nazified Germany is treated as an equal,
 
is more practical than the dictated peace sought for by
 
Group A whose conclusions are derived from a study of a part
 
only of the facts of the whole situation.
 
     If the peace settlement is to result in a
 
permanent and co-operative peace, there can be no doubt
 
that the nations will have to be prepared for radical
 
vhanges in their conceptions of national sovereignty.
 
Such changes will encounter opposition not only from the
 
forces of reaction but also from the natural conservatism
 
of manking. Hence it will be wise to proposa as small a 
 
measure of change as is compatible with the achievement 
 
of our objective.
 
(i) Security. The achievement of security for all 
nations from the possibility of having to meet
threats of dominance by force or the actual use 
of force is the essential international problem. If
this great objective can be attained the beneficial 
consequences would be incalculable.
 
(ii) Economic factors. A sense of national economic 
frustration, the grinding sense of national poverty, the 
evidence of the contrasts between the  Have' and the  
 Have-not' nations are factors that have contributed to 
international friction and have disturbed world peace. 
If to these is added the demand of the poorer classes 
for a more equitable share of national wealth, it is clear 
that economic and social readjustments are essential to 
world peace 
                                           Security