IN THE EYENT OF WAR

Dominion, Volume 1, Issue 247, 11 July 1908, Page 5

IN THE EYENT OF WAR

POSSIBLE SAFEGUARDS. ONE SURE THINCi A STRONC NAVY. INSURANCE RATES. (nr TELEGBAPE—PBES3 ASSOCIATION —COPTEIGHT.) London, July 9. Tho Treasury Committee appointed in 1906, under the chairmanship of Mr. Austen Chamberlain, ex-Chancellor of tho Exchequer, to inquire into war risks of shipping, reports that it is unable to recommond tho adoption of any form of national guaranteo against war risks for Ehipping and maritime trade, except that provided by the maintenance of a powerful navy.

London, July 9.

Captain Cbas. Ottloy (Secretary of tho Committee of Imperial Defence who was principal British Naval representative at The Hague Conference) signed the report, with a reservation that it would bo very regrettable if inability to recommond State action to-day should bo regarded as definite proof of the uselessness and impracticability of any future schome of national guarantee. NAVAL PROTECTION EASIER THAN FORMERLY. Sir Geo. Sydenham Clarke (formerly Secrotary of the Committee of Imperial Defence, and a member of the War Offico Reconstitution Committee) saw the ohairman's draft report on tho war risks of shipping, but was unable to concur with it on all points. In a separate memorandum he contends that the protection of commerce depends ultimately on the battle fleet, and expresses a strong belief that in modern naval maritime conditions it is easier now to protect commerce than it was formerly.

He considers State action necessary, but believes that an exaggeration of war risks might, by imposing a serious check upon the operations of the mercantile marine, entail a grave national danger. "If the State, during an early period of hostilities, can succeed in steadying insurance rates until they rest upon a reasonable basis, .it will attain all that is necessary. Overestimate of risk is more to be feared than actual capture, which, with . an adequate nary, may not reach dimensions constituting a public, danger." ' INDEMNITY FOR MERCHANTMEN. Sir 6. S. Clarke holds that it would be absolutely impossible for. the State, to set up an insurance department at the outset of war, and he advocates' a system of indemnity at fixed rates. Ho suggests that the State should lay down a schedule of rates corresponding to zones of voyages, whereby a vossel and, cargo proceeding from London to Australia should be charged 2J per cent, via Suez and 2} per cent, via the Cape.