TIE EUROPEAN OUTLOOK.

New Zealand Herald, Volume XLIX, Issue 15056, 27 July 1912, Page 7

TIE EUROPEAN OUTLOOK.

SPEECH BY MR. ASQUITH.

RELATIONS WITH GERMANY.

" AMITY AND GOODWILL."

INCREASE"''. .* IN '; ' ARMAMENTS.

"NO AGGRESSIVE PURPOSE."

By Telegraph.—Tress Association.— Copyright.

(Received July 25. 10.25 p-w-)

London, July 26. In speaking in the House of Commons last night on the Defence Committee Estimates, . the ■ Prime Minister (Mr. Asquith) indicated that valuable work might be accomplished by various sub-committees, particularly* in the direction of the co-ordination of the various departments in war time.

Mr. Asquith referred to the significant and momentous occasion of the Oveaseas Dominions being admitted into the committee's confidence.

The international relations, he said, were of the most friendly character. Special friendships had stood the test of-time, and he could say deliberately that no cause existed for, Britain quarrelling with any nation.

"Conversations" With Germany.

British relations with Germany, he said, were marked by amity and goodwill. The "conversations" initiated by Lord Haldane had been continued in a spirit of frankness on both sides.

' Mr. Asquith said that he regretted the lamentable increase in the armaments.

"All the Powers," he added, " know that we have no aggressive purpose. We covet no heritage and have no inclination to extend the range of our responsibilities. " Our present expenditure," Mr. Asquith concluded, "is simply an insurance of our world-wide interests." Narrow Margin of Superiority. Mr. Bonar Law (Leader of the Opposition) said that he mistrusted the Admiralty, owing to its vaccilation in regard'M the Mediterranean position. ■■■•■'■• The margin of superiority provided for, he said, was too narrow. He feared that there must have been some kind of a Cabinet compromise.

Sir Edward Grey (Minister for Foreign Affairs) said that none of the Defence Committee's decisions had been overruled by the Government.

He informed the Liberal malcontents, who blamed the foreign policy for the increase in armaments, that if we reverted to a position of splendid isolation it would increase diplomatic friction, and it might be necessary to enormously increase our naval strength. ■-

Sir Edward invited the advocates of the limitation of armaments 1 to say whether the basis of agreement should be the British fleet's superiority or inferiority.

THE CABINET COMPROMISE.

DISPOSAL OF THE SURPLUS.

'Receive.! July 25. 10.25 n-m.)

London, July 20.

The Times says that the compromise in the Cabinet which Mr. Bonar Law referred to in yesterday's debate takes the form of refusing to give more than a million of the surplus to the navy as a set-off to the refusal to allot one, ; or two millions to national insurance purposes.

THE 60 PER CENT. MARGIN.

"GRADUAL WHITTLING AWAY"

(Received July 26, 10.53 p.m.) London, July 26.

The newspapers comment on Mr. Churchill's gradual whittling away of the 60 per cent, margin of superiority in Dreadnoughts, as demanded by him in his speech on the Navy Estimates in March last.

Mr. Churchill, in explaining his Estimates to the House of Commons on March 18, said:—" If Germany likes to drop out any one or even two of her annual quotas of ships and keep her money in her pocket we will at once, in the absence of dangerous developments elsewhere, drop out our corresponding quota. If we both took a holiday for a year the three ships that Germany did not build would automatically wipe out no fewer than five potential British super-Dread-noughts— than they could hope to do in a brilliant naval engagement.' He did nofc endorse the two keels to one programme against Germany. He said-Hie British construction should be 60 pet cent., or 16 ships to 10, so long as Germany adheres to her navy law. But it Germany increased her programme two additional" British ships would be laid down for each German additional one. I lie First Lord added: "The Germans win be no gainers in navy power by any increases they may make.".

WHAT CANADA WILL DO. GRANT OF £6,000,000 TO BE RECOMMENDED. FOR, MORE DREADNOUGHTS. (Received July 25, 10.25 p-m.) London, July 26. The Daily Mail states that the Prime Minister of Canada (Mr. R. L. Borden) and his colleagues are prepared to recommend the Canadian Parliament to make a contribution of £6,000,000 for the construction of Dreadnoughts. THE FRENCH FLEET. MORE SHIPS WANTED. London, July 25. The French newspapers are demanding an increased na-val construction programme in view of the Austro-Italian programme.