340--------------------------e------------------------------------------_ that any further encroachment should be made upon the terri- tory of Czechoslovakia. Surely that is not a position that we can take up. What we are doing now, as was pointed out by my Noble Friend the Foreign Secretary, is witnessing the readjustment of frontiers laid down in the Treaty of Versailles. I do not know whether the people who were responsible for those frontiers thought they would remain permanently as they were laid down. I doubt very much whether they did. They probably expected that from time to time the frontiers would have to be adjusted. It is impossible to con- ceive that those people would be such supermen as to be able to see what would be the right frontiers for all time. The question is not whether those frontiers should be readjusted from time to time but whether they should be readjusted by negotiation and discussion, or be readjusted by war. Readjust- ment is going on and, in the case of the Hungarian frontier, arbitration by Germany and Italy has been accepted by Czechoslovakia and Hungary for the final determination of the frontier between them. I think I have said enough about Czechoslovakia. " I do not propose to talk about Spain, following the ex- ample of the right hon. Gentleman. As to China, I can only say that there again the right hon. Gentleman appears to me to be taking an unnecessarily gloomy view of the future. He spoke of China as one of the largest potential markets in the world. Potential—what does that mean ? China cannot be developed into a real market without the influx of a great deal of capital, and the fact that so much capital is being destroyed during this war means that even more capital will have to be put into China in the future, when the war is over. Who is going to supply the capital ? It is quite certain that it cannot be supplied by Japan. Therefore, when the right hon. Gentleman appears to contemplate a future in which Japan will have the monopoly of Chinese trade, and we shall be excluded from it altogether, I say that that is flying in the face of the facts. It is quite certain that, when the war is over and the reconstruction of China begins, she cannot possibly be reconstructed without some help from this country. (Inter- ruption.) That is a matter for those who are asked to invest their money to consider at the time.