Lao Tzu Quotes
The violent will not come to a natural end.
Lao Tzu, c. 604-531 BC, Chinese Philosopher & Founder of Taoism, Tao Te Ching
Sourced by: Eigen's Political and Historical Quotations
While this was a common attitude for years before, the horrors of World War II produced a general revulsion to war and an awareness that war between two nations spills over to other states in the region and in an era of globalization, effects countries in other parts of the world. So there has been a tendency to use diplomacy endlessly, even after "things have gone too far". Historically, when things reached that point, the parties did fight it out, and when one was weakened sufficiently, negotiations and diplomacy could then be fruitful.
The Chancellor was referring to the United States George W. Bush proposal for war with Iraq.
Lao Tzu (/ˈlaʊˈtsuː/ or /ˈlaʊˈdzʌ/), also rendered as Laozi (UK: /ˈlaʊˈzɪə/; US: /ˈlaʊˈtsiː/; Chinese: 老子, Mandarin: [làu̯.tsɹ̩]; commonly translated as "Old Master") and Lao-Tze (/ˈlaʊˈdzeɪ/), was an ancient Chinese philosopher and writer. He is the reputed author of the Tao Te Ching, the founder of philosophical Taoism, and a deity in religious Taoism and traditional Chinese religions.