Great Britain is thus left as the sole European Power capable of independent effort in the Pacific. Clearly the rivalry for the dominance of the ocean lies between her and the United States. To discuss that rivalry is to discuss the real problem of the Pacific. It may be done frankly, I trust, without raising suggestions of unfriendliness. A frank discussion of the problem, carried out on both sides of the Atlantic, would be of the greatest value to civilisation. For the position seems to be that both Powers are preparing to capture the Pacific; that neither Power can hold it against the other; and that a peaceful settlement can only be founded on complete mutual understanding. It is true that if the United States decides "to play a lone hand," she may win through if all the circumstances are favourable, for she seems destined to control the resources of all America. It is likely that within this decade the United States Flag will fly (either as that of the actually governing or the suzerain Power) over all the territory south of the Canadian border to the southern bank of the Panama Canal. Intervention has been threatened once already in Mexico. With any further disorder it may be carried into effect. The United States cannot afford to allow the chance of a disorderly force marching down to destroy £70,000,000 worth of United States property. Central America has been marked down for a process of peaceful absorption. The treaty with Honduras (a similar one exists with Nicaragua) shows the method of this absorption. It provides: "The Government of Honduras undertakes to make and negotiate a contract providing for the refunding of its present internal and external debt and the adjustment and settlement of unliquidated claims for the placing of its finances upon a sound and stable basis, and for the future development of the natural and economic resources of that country. The Governments of the United States and Honduras will take due note of all the provisions of the said contract when made, and will consult, in order that all the benefits to Honduras and the security of the loan may at the same time be assured. "The loan, which shall be made pursuant to the above undertaking, shall be secured upon the customs of Honduras, and the Government of Honduras agrees not to alter the import or export Customs duties, or other charges affecting the entry, exit, or transit of goods, during the existence of the loan under the said contract, without consultation and agreement with the Government of the United States. "A full and detailed statement of the operations under this contract shall be submitted by the fiscal agent of the loan to the Department of State of the United States and to the Minister of Finance of the Government of Honduras at the expiration of each twelve months, and at such other times as may be requested by either of the two Governments.