AUSTRALIAN FLEET.

Dominion, Volume 1, Issue 86, 4 January 1908, Page 5

AUSTRALIAN FLEET.

NAVAL AGREEMENT. DIFFICULTY WITH THE ADMIRALTY. Bt TELEGKJriI—IIIES3 ASSOCIATION—OOrYRIOITI. v t IWeltJOUrna, January 3. Tho Federal rromier, Mr. Deakin, has not yet received a reply to a cablegram sent by him to the Admiralty nearly a month ago, urging it. to reconsider its rejection of tho nrningomont which ho proposed should be substituted for tho nival agreement. The Admiralty has laid down that the first condition of any now nrrnhgeniont must be the cancellation of tho]present agreement. It is prepared to assist in carrying out tho schemes submitted to tho Imperial Conference by Mr. Deakin. or any approved modified scheme which (iocs not involve a definite pledge to maintain particular. vessels permanently in Australian waters. Mr. Deakin cabled for further terms of the Admiralty's requirements. The "Sydney Morning Herald," in an article, the gist of which is that a nascent local flotilla is no compensation for tho loss of tho naval agreement, remarks: "It may bo suggested that it does not necessarily follow that the Admiralty would withdraw ils ships at once if or because we declined to continue tho subsidy. But on this point wo havo Lord Tweedmouth's assurance that tho Admiralty has certain strategic plans in view which contemplate the union of three now existing but distinct squadrons—those of Australia, India, and China. Such a rearrangement- might easily entail the withdrawal or reductions of the local squadron, and wo shall do well to consider that contingency before we think of altering the existing understanding."