It does make sense, but it's not a full proof (as it says at the bottom, you need to define addition). And er, I would attempt to translate it into something that makes sense if I could read it. There's a website around that explains it somewhere too.
The whole book looks like that. I heard that it's actually wrong though. Slightly less pedantic proofs I've seen are that 1 is positve, root 2 exists and 1+1=2 in the real numbers constructed by factoring the ring of all Cauchy sequences in Q out by the ideal of null Cauchy sequences in Q.