CO885-(16-18) — Page 476

PUBLIC RECORD OFFICE

C.O.

Reference :-

+885

17 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

34

Occasional breakdowns are, of course, almost inevitable with modern ships, and it is not to be expected that the Australian Squadron should be exempt in this respect. The engines of the “ 'Pyramus," for instance, developed defects on the voyage out, and the ship has had to be placed in dockyard temporarily for repairs. But unless it is alleged that the Admiralty has knowingly despatched vessels in an inefficient state, or that their defects are more frequent or more serious than those of corresponding ships in other squadrons, my Lords think that they may fairly expect a more charitable construction to be placed on any breakdown that may occur than a portion of the Australian public is apparently disposed to concede.

7. In regard to (d), my Lords must express their regret that it was decided to employ the "Cambrian" temporarily in the Pacific Ocean outside the limits of the Australian and China Stations as laid down in the Schedule of the Naval Agreement without first communicating with the Commonwealth Government. But at the same time they desire in explanation to set out the following facts. At the time when the Agreement was signed the whole sea surface of the globe was parcelled out into local stations of the British Navy. At the present time this system has been definitely abandoned and the station limits (as, for instance, the line between the Australian and China Stations) are merely retained as a matter of administrative convenience. No part of the American Coast is included in a so-called station. The policy of the Admiralty Board is that only occasional visits of His Majesty's Ships shall take place on both the Atlantic and Pacific coasts of the New World, and when it was desired this year that the Pacific coast should be visited by two ships in company, they were naturally detached from the Eastern Fleet. In view of the chronic uncertainty of affairs in China, my Lords desired to avoid any undue weakening of the Naval force in Chinese waters, and had recourse to the Australian Squadron of the Eastern Fleet for the second vessel, without foreseeing that thereby they would be held to be transgressing the Naval Agreement.

a

8. So far my Lords have dealt specifically with the various points raised in Mr. Deakin's letter, but they are aware that there lies in the background more serious question still, and that is whether the three parties to the Naval Agreement are or are not satisfied with it. My Lords have already, in com- menting on another despatch of Mr. Deakin, had occasion to disassociate themselves from any expression of dissatisfaction with its terms. But this further indication of something resembling dissatisfaction on the part of the Commonwealth Government leads them to state their position in regard to it somewhat more explicitly.

9. The section headed "Strategical Considerations" in the "General Scheme of Defence" for Australia, recently drawn up by the Colonial Defence Committee, endorsed by the Committee of Imperial Defence, and forwarded to the Commonwealth Government, indicates the views held by His Majesty's Government on the principles of Australasian defence, which must lie at the root of any naval agreement. These views would not of themselves justify the retention in Australasian waters of a squadron of the present size, and it may at once be admitted that if the Board of Admiralty were free to determine on purely strategic grounds the class and numbers of ships on the Australian Station, as they are in every other quarter of the globe, they would not maintain the squadron at its present strength, but set free some of the ships and men for service in waters where they are more required.

10. My Lords recognise, however, that the Naval Agreement is of great value in so far as it gives the fullest expression practicable at the moment to the principle of the unity of sea power, and also on account of other more purely political considerations with which the Admiralty Board is not immediately concerned. They are prepared loyally to carry out any obligations which they or their predecessors have incurred, and they will always try so far as possible to meet the views of the Commonwealth and New Zealand Governments as regards the fulfilment of those obligations,

I am, &c.,

C. I. THOMAS.

31940.

35

No. 12.

The SECRETARY OF STATE to the GOVERNOR-GENERAL OF AUSTRALIA.

(No. 163.)

My LORD,

*

Downing Street,

September 14, 1906. WITH reference to your Excellency's despatch No. 96 of the 27th April last, and to your despatches Nos. 194 of 29th August and 205 of 8th Sep- tember 1905,† I have the honour to transmit to you, to be laid before your Ministers, the accompanying copy of a lettert from the Admiralty relative to the manner in which the terms of the Australian Naval Agreement have been carried out by His Majesty's Government.

2. I trust that the explanations contained in the Admiralty letter will be regarded by your Government as satisfactory.

I have, &c.,

ELGIN.

42363.

No. 13.

ADMIRALTY to COLONIAL OFFICE.

(Received November 17, 1906.)

[Copy to Governor-General, Australia, No. 239, and Governor, New Zealand,

No. 117, December 7, 1906.-L. F.]

SIR,

Admiralty, November 16, 1906.

I AM commanded by my Lords Commissioners of the Admiralty to forward herewith, for the information of the Secretary of State for the Colonies, copy of a letter of this day's date addressed to the Commander-in- Chief, Australia, in regard to certain proposed changes in the training and pay of the Australasian Naval Forces and Reserve.

&c. EVAN MACGREGOR.

(No. 388.)

I am,

Enclosure in No. 13.

to

SIR,

Admiralty, November 16, 1906. I HAVE laid before my Lords Commissioners of the Admiralty your submission No. 116/1824 of the 27th February last proposing certain changes in the training and pay of the Australasian Naval Forces and Reserve.

My Lords approve of certain recommendations made by you, but they are not prepared to come a decision upon those of the changes contemplated which involve any appreciable additional expenditure until it may be possible to arrive at a fresh agreement with the Colonial Governments as to the incidence of the expense involved. Under the arrangement now in force a fixed contribution is made by the Colonies towards the cost of the Australasian Forces, and any addition to the cost of training, such as a change in the constitution of the Force involving longer service and higher non-substantive qualifications, must fall on the Imperial Exchequer.

Until, therefore, the terms of the Agreement of 1903 can be reviewed, my Lords must postpone the consideration of changes which will add materially to the cost of the Australasian Naval Forces.

My Lords, however, are of opinion that the following changes suggested might advantageously be carried out at the present time, without prejudicing any future decision as to the Naval Agreement with the Australasian Colonies :-

1. The substitution of a system of deferred pay for that now governing Colonial extra pay, applicable to all new entries, or men re-engaging, and to such as may agree to accept the new terms.

* No. 8.

↑ Nos. 35214 and 37565; not printed.

No. 11.

C 2