NAVAL DEFENCE.

Marlborough Express, Volume XLIII, Issue 267, 12 November 1909, Page 3

NAVAL DEFENCE.

NEW ZEALAND'S ATTITUDE-

THE PRIME MINISTER'S PRO-

YEARLY EXPENDITURE OF ,

£250,000,

Dealing with the question of naval defence in th* Financial Statement on Wednesday evening, Sir Joseph iWard said:— ; Hon. Members are aware that the Imperial Defence Conference whi«?Ji !was attended by me as the representative of this Dominion arrived at decisions- in connection with the strengthening of the British Navy which <call for action on the part ot New Zealand. The offer of a "Dreadnought" made by this country was a<scepted by the British Government, and the- necessary, steps require to bo taken to enable the vessel to be built and handed over to the Admiralty. For this purpose I propose to ask the House for authority to raise a loan of up to two millions at a rate of interest not exceeding, 8£ per cent. Until the, yessel is actually completed ltis not possible to say what the exact amount '■ of the expenditurec will be, but it'will be within the amount I have named. Having regard, to the nature of the expenditure you wm ? I Slope, agree with me that it should not be treated as part of our permanent public, debtj and I propose that we make provision for paying it off within eighteen years. For this purpose a sinking-fund of 4 per cent. will require to be provided, and proposals in this direction will be submitted to you. It is scarcely necessary to Say anything at tins time in support of our offer of the /'Dreadnought." The: Government made it,, subject.of course' to ratification by Parliament^ Parliament ratified it, and in doing so acted, I am convinced, with the hearty approval of the great majority of the people. The motive throughout was the same. We recognised, all. of us, that the best interests of New Zealand were bound up with the maintenance of British supremacy on the seas. That supremacy appeared to be directly challenged. In our own interests, as well as those of the Empire .<at large, we felt that, at that particular juncture h the offer, we made was not only op-' •;.portune hin itself, but "was,the most ' effective way of strengthening the Empire. At the Conference the Overseas representatives were of one mind in their %illingness to take rsonie ©hare in- Imperial defence, though they differed as to the form it should take. Local sentiment and local con-

iflitions no doubt weighed with them. Some preferred local navies; others, amongst them myself, thought that the more excellent way was to contribute a quota to the British Navy itself. The course I followed will1-be

best seen by. the following correspondence, which summarises the position:

"Hotel Cecil, London, 11th Aug. 1909

"Dear Mr McKenna,—At to-day's meeting you explained that the .general idea underlying the Admiralty memorandum was that the present East Indies, China and Australian Squadrons should be treated strategically as one. Par Eastern, or as1 you thought as a preferable term, 'Pacific' station, and that each, of the principal portions of this station should have a complete fleet unit, the Commonwealth Government maintaining one unit in Australian waters in lieu •of the present Australian Squadron, and the Imperial Government providing the "Dreadnought," the armored ■cruiser presented "by. < New Zealand forming the flagship of the China unit. If Canada found herself able also to come into this agreement her contribution to the Pacific station would be a fourth unit. I think it will conduce to clearness if I .State my -views in writing; hence this memorandum. I expressed myself as generally satisfied with this arrangement as a strategic plan, but I would point out that if, as I understand, Australia is providing an independent unit, it means the superseding of the present British Australian Squadron, and the fact of that being<k>ne would on its completion determine the naval agreement with Australia and New Zealand, thus creating an entirely new position. T favour one great Imperial Navy, with all the Oversea Dominions contributing, either in ships', or money, and with > naval stations at the self-gov-ernnig Dominions, supplied with ships by and under-the control of the Admiralty. I, however, realise the difficulties, and recognise that Australia and Canada in this important matter are doing that which' their respective Governments consider to be best; but the fact remains that the alteration that will be brought about upon, the establishment of an Australian unit •will alter the present position with

New Zealand. New Zealand's maritime interests in her own waters and her dependent islands in the Pacific would, under the altered arrangements, be almost entirely represented by the Australian fleet unit, and not, as at present, by the Imperial Fleet. This ' important fact, I consider, necessitates some suitable provision -being: made for New Zealand, which country has the most friendly feeling in every respect for^ Australia and its people. I am anxious that in the initiation of new arrangements with the Imperial Government under the altered conditions the interests of New Zealand should not be overlooked. I consider it my duty to point this out, and to have the direct connection between New Zealand and the Royal Navy .maintained in some concrete form. New Zealand will supply a "Dreadnought" for the British Navy as already offered, the ship to be under the control of and stationed wherever the Admiralty considers advisable. I fully realise that the creation of Pacific units, one in the Bast, one in Australia, and 2 if possible, one in Canada, would be a great improvement upon the existing | conditions of affairs, and the fact j that the New Zealand "Dreadnought" was to be the flagship of the China I Pacific unit is, in my opinion, satisi factory. I, however, consider it is desirable that a portion of the China Pacific unit, should remain in New Zealand waters, and I would suggest that two ;. of the_ new "Bristol" cruisers, together, with, -three destroyers arid two submarines, should be" detached from the China station in time of peace ■ and stationed in New Zealand waters; that the vessels should come under the flag of the Admiral of the China unit; that the flagship should make periodical visits to Tfew Zealand waters, and that there should be an interchange in the service of trie cruisers between New Zealand and China under conditions to ~be laid down. The ships should be manned as far as possible by New Zealand officers and men, and in order that New Zealanders might be attracted to serve.in the fleet local rates should be paid to those New Zealanders who enter in the same maner as under the present Australian and IN ew Zealand agreement; such local rates being treated as deferred pays. The de'tevmination of the agreement with Australia has of necessity brought up the position of New Zealand under that joint agreement; ,1 therefore suggest that oh the completion of the China unit the. present arrangement with Ne-w Zealand should cease; that its contribution of £100,000 per annum should continue and be used to pay the difference in the rates of pay of the New Zealanders above what would be paid under the ordinary British rate. If the contribution for the advanced rate of pay did not amount to £100,000 per annum, any balance to be at the disposal of the Admiralty; the whole of this fleet to be taken in hand and completed before the end of 1912; and I should be glad if the squadron as a whole would then visit New Zealand on the way to china, leaving the New Zealand detachment there under its senior officer.

"I remain, "Yours sincerely,

"(Signed) J. G. WARD

"Admiralty, Whitehall, 18th August, 1909. "Dear Sir Joseph, The suggestions made by you at the meetino: on the 11th and recited by you in your letter to mo of the saniejdate.have been carefully considered and concurred in by the Admiralty. The present naval agreement with Australia -and New Zealand will not be renewed, and in view of this fact and other special circumstances referred to by you the part of the China fleet unit as set out by you will be maintained in New Zealand waters as their headquarters. Your wish that the ships of the fleet as a whole or at any rate the armoured ship and cruisers when completed should pay a visit to New Zealand on their way fb China shall also be carried out. I take this opportunity, on behalf of the Admiralty, of repeating their sincere thanks to the New Zealand Government for taking' so. important a part in the inception of the* present Conference. The Admiralty feel that every effort should be made to work out a scheme acceptable to the people of New Zealand, having regard to the patriotic action taken by yourself and your Ministers ill March last.

"I remain,

. "Yours sincerely "(Signed), REGINALD McKENNA." In making these proposals I acted on ,what, after very full consideration, I believed to be best for New Zealand, and moftt in accord with the sentiments, of her people;, It would be quite out of place for me to attempt to question or even to criticise the decision of Canada and Australia to establish local navies. Tt is for these great Dependencies themselves to determine the lines on which they

are to proceed, and I fully recognise that they are the best judges of their own best interests. Omittme all, such, controversial points as the difficulty of maintaining a common standard and arranging for interchanges, risk of defeat in detail if the British fleets were crushed, and so on, there remainsone consideration which is purely personal to New Zealand, and in my own opinion determines the whole matter. This is the fcjuestion of cost. "To show what pecuniary is involved in a local fleet unit, I quote an extract from an Admiralty memo, that Mr McKenna submitted to the Conference: —

"The fleet unit to be aimed at should, in the opinion of the Admiralty, consist of the following: One armoured cruiser of the new "Indomitable' ' class, three unarmoured cruisers of the "Bristol" class, six destroyers,, three submarines, with the necessary auxiliares such as depot and store ships, etc. "Simply to man such a squadron, omitting auxiliary < requirements and any margin for reliefs, sickness, etc., the minimum nurhber would be about 2000 officers and men,, including one rear-admiral or commodore and staff, one captain, four, commanders, 43 lieutenants and v sab-lieutenants, 16 engineer officers, besides medical and accountant officers and _ warrant and petty officers of the various classes. "The estimated first cost of buildand and arming: the class of ships indicated would be 'Indomitable* (new) £2,000,000;; 'Bristol' £350,000; destroyer (river class) £80j000; submarine (C class) £55,000. Annual cost of maintenance may be taken to amount approximately to 'Indomitable' £527000, 'Bristol' £16,500, destroyer (river class) £10,700, submarine <C class) £2300. It is difficult to; estimate the amount 'which should represent interest and depreciation on the first cost. The life of the 'Indomitable' ' and 'Bristol' classes may be estimated at 20 years, and that of destroyers and submarines at fifteen years; but the amount to be calculated on this basis would vary according to the rate of interest prevailing in each country. It has not therefore been included. The total .first cost of building and arming a fleet unit, apart, from auxilaries, would be: One, 'Indomitable' (new) £2,000,000; 3 'Bristols' £1,050,000; 6 destroyers (river-; class) £380,000; 3 submarines (G class)' £165,000; total ; and tbjb total aiinual cost of maintenance would be respectively £52.000, £49,500, £64,200 and £6900; tofal £i72;600> , ' .:•;• :.:r,■ ■. :■■/■■•■:.,

"The aboyeY figures do not include cost of personnel,'which should be added to the annual charge for maintenance. The* active sei'yioe pay of ■2000 officers 'and men and their victualling' and other like1 expenses would amount approximately to £165,000 a .year,; calculated on the rates payable in the-Royal Navy only. It will be lioticed that, as in the case of the material of the fleets unit, the estimate dcost of personnel required to man the .'shios does- not comprise the whole cost. "There/would be other charges to be provided for, such as the pay of persons employed in. subsidiary services, those undergoing training, sick in reserve, etc*" , - ' In the course ,o,f the discussion Mr McKenna said that at Imperial rates the total annual cost of such a fleet unit would. ;be about £600^000. Sir F. W. Boirdeh, speaking for Canada, said that in.the ease of that Dominion it could not be less than £800,----000. After . going into careful calculations I stated that in. the case of New Zealand it would'be at the very least £700,000, Putting it at that moderate estimate it is manifest that such an annual is quite beyond our resources, and jnust be so for many years to come, The proposals made by me involve a total yearly expenditure of £250,----000, made up thus: "Dreadnought" (interest; and sinking fund for each of 18 years) £150,000. contribution, to Admiralty to cover difference between I Imperial and local'rates of pay, etc., £100,000; total £250,000. Deducting ; from this the £100,000 which we are at present paying as our contribution to the cost of the Australian squadron, and which is to be dropped when the new scheme is adopted 4 the net result will be a yearly increase of £150,000 on the amount we at present' pay. Recognising as we all do our duty to take upon us a reasonable share in the general burden, of Imperial defence, . 1 feel satisfied that neither Parliament nor the oountrv will consider such an expenditure *to Ife "excessive. Proposals on the subject will be submitted at ah • early date for your consideration. '•■ .