A.—4

16

Since New Zealand and Australia would bear no part of the expenses of naval defence in the Atlantic, it is suggested that their share in the Pacific should be more than is shown in Table 111. The suggested proportion of the cost of provision and maintenance of the Far Eastern Fleet is, then, approximately — TABLE IV. Great Britain . . . . . . 75 per cent. Australia . . . . . . . . 20 ~ New Zealand . . . . . . . . 5 ~ 22. If these suggestions are accepted, it remains to formulate proposals for the best method of using the total sum to be spent annually on the Far Eastern Fleet by the United Kingdom, New Zealand, and Australia. The method suggested is to ascertain the annual cost of maintenance of the Far Eastern Fleet when it reaches the strength mentioned in paragraph 11, and the annual sum that should be set apart for the depreciation due to the necessity for replacement of the ships after a certain period ; and then, having obtained these figures, to divide the cost in the proportion given in Table IV. The initial cost and effective life of the various types of ship, for the work required of them in the fighting line of a striking force, is taken asClass of Vessel. Initial Cost. Effective Life. £ Battleships .. .. .. 3,000,000 .. 15 years. Battle-cruisers .. .. 4,000,000 .. 15 ' „ Light Cruisers .. .. 500,000 :. 15 Flotilla Leaders .. .. 200,000 .. 12 „ Destroyers .. ■ .. .. 160,000 .. 12 „ Submarines.. .. .. 150,000 .. 15 „ Depot Ships .. .. 200,000 .. 25 . „ Repair Ships .. .. 200,000 .. 25 „ Submarine Parent Ship (large) 200,000 .'. 25 „ (small).. 132,000 .. 25 ~ Mine-sweepers .. .. 70,000 .. 20 „ Minelayer .. .. .. 150,000 .. 25 „ Aircraft-carrier .. .. 200,000 .. 25 .„ (small) .. 150,000 .. 25 „ Note. —As the various types of vessel become ineffective for front rank work they may still be of use for subsidiary purposes. Thus light cruisers could be used for trade protection until at least twenty years old, and destroyers and submarines for harbour defence for the same or a longer period. 23. Owing to the ever-changing conditions in the cost of labour and material, and to the alterations in the pay of officers and men, and in the designs of ships, it is almost impossible to arrive at an accurate estimate of the pay, pensions, &c, and of the sum required for the maintenance and depreciation of the fleet. The best figures available are made use of, and indicate a total annual cost of £19,704,700. Taking the percentages mentioned above the contributions would be— United Kingdom .. .. 75 per cent. = £14,778,525 Australia .. .. ..20 „ = £3,940,940 New Zealand .. .. ..5 „ = £985,235 24. The question as to the different classes of ship that each country should maintain is mentioned in Volume 111. The considerations therein stated suggest the contributions to the Far Eastern Fleet shown in Volume 111, of which New Zealand's share is :—