the matters vital to us produced by the legend of our impending collapse.  But from that moment, we have been in the position simultaneously with our enemies to lay down arms and settle our difficulties peacefully and by arbitration.  This being recognised by the world affords us the possibility of not only accepting the plan of disarmament and a court of arbitration, but, as you, gentlemen, are aware, of working with all our energy for its realisation, as we have for some time past.

  After this war Europe must without doubt be placed on a new
  political basis, the permanency of which can be guaranteed.  This
  basis will, I believe, be of a fourfold nature: 

In the first place, it must furnish a guarantee that there shall be no war of revenge on any side; we must make sure that we can bequeath to our children’s children the knowledge that they will be spared the horrors of a time similar to that which we have undergone.  No shifting of power in the belligerent states can achieve that.  The only manner by which it can be attained is international disarmament throughout the world and acceptance of the principle of arbitration.  It is needless to say that these measures for disarmament must not be confined to one separate state or to a single group of Powers, and that they apply equally to land, water and air.  War as a factor in policy must be combated.  A general, uniform and progressive disarmament of all states in the world must be established on an international basis and under international control, and the defensive forces limited to the utmost.  I am well aware that this object will be difficult to achieve and that the path that leads thereto is long and thorny and full of difficulties.  And yet I am firmly convinced it is a path that must be trodden and will be trodden, no matter whether it is approved of individuals or not.  It is a great mistake to imagine that after such a war the world can begin from where it left off in 1914.  A catastrophe such as this war does not pass by and leave no trace, and the most terrible misfortune that could happen to us would be if the race for armaments were to continue after the conclusion of peace, for it would mean the economic ruin of all states.  Before the war began the military burdens to be borne were heavy—­though we specially note that Austria-Hungary was far from being on a high level of military preparedness when we were surprised by the outbreak of war, and it was only during the war that she resumed her armaments—­but after this war an open competition in armaments would render state burdens all round simply intolerable.  In order to keep a high standard of armaments in open competition all the states would have to secure a tenfold supply of everything—­ten times the artillery, munition factories, vessels and U-boats of former days, and also many more soldiers to work the machinery.  The annual military budget of all the Great Powers would comprise many milliards—­it