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PUBLIC RECORD OFFICE

Reference :-

C.O. 885

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

PUBLIC RECORD OFFICE, LONDON

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I was authorised at the same time, sir, to say to the Imperial Government on behalf of Natal that we should be prepared to pay the interest on the cost of either a battleship or a first-class cruiser, anything up to 35,000l. per annum, in lieu of the small contribution we now give in the way of coal, but which has not yet been largely taken advantage of by the Admiralty Wo recognise, sir, that we are doing very little towards assisting the Imperial Navy, and we wish spontaneously to do more than we have been doing up to the present. We, therefore, offer, and I am empowered now to offer, to the Admiralty the interest on the cost of a battleship up to 35,000l. of revenue, whatever may be the actual amount, and of course I cannot say what is the cost of building a first-class cruiser or a first-class line of battleship. I do not think, sir, that it is possible for us at the present time to do more than offer to make an annual contribution. We thought in Natal it might be feasible for all the Colonies to agree on that point, that we should each make an annual contribution according to our means, and that the joint contributions of the various Colonies would amount to a considerable sum, which would be of material assistance to His Majesty's Government in connection with the maintenance and upkeep of the Navy. I do not know whether the other Colonies are prepared to fall in with this view. From what has fallen from some of the gentlemen who have spoken, I fear that they are not all prepared to agree to the proposal that we should do something in this direction towards the support of the Imperial Navy. There is no doubt a good deal of sentiment in it. I think Imperial sentiment is a matter which should be encouraged, and we in Natal do encourage Imperial sentiment, and we think that by this contribution we shall certainly prove that it is our desire to show that we are an integral portion of the Empire, to which, I believe, we are all proud to belong. I hope, sir, we may arrive at some decision of this kind, that we can each give a certain contribution to the Imperial Navy.

I would say that whilst it may be right and proper, and I think it is right and proper, that the Colonies should not be bound down by a hard and fast line or rule or legislation to keep up a certain force which should be availabie for service at any time if called upon in any part of the Empire, yet I agree with those who have spoken before me that if the need should ever arise every one of the self-governing Colonies would be prepared to come forward as they have come forward during the recent war, and to give assistance to the utmost of the power of each Colony wherever it may be required through- out the Empire. I think I can say that that is in the mind of every Prime Minister who has already spoken, and I believe it is what would be done on any future occasion if the need should arise, and that we should not be found wanting. I do not know, sir, that I need add anything more. I have made the proposal which I have just read out to you in this resolution of ours.

Sir ROBERT BOND: Mr. Chamberlain, my Lords, and Gentlemen. It was with very much satisfaction indeed that I heard Lord Selborne state this morning that the slight hitch that had occurred in connection with the establishment of a Naval Reserve in the Colony of Newfoundland had been removed. This is especially gratifying to me, because the Govern- ment of the Colony entered into the movemout with very much enthusiasm, as did also the people of the Colony; and the success that has attended the movement so far has been so marked that I think it would have amounted to a calamity if anything had been allowed to occur to interfere with the further progress of that scheme. Since our last meeting I have been thinking how we can as a Colony do something more to aid in the matter of Imperial defence; and I have thought out a proposal which I would respect. fully submit for the consideration of the Conference a proposal which if acceptable to His Majesty's Government the Colony would be prepared to aid in carrying into effect.

In the first place I will, with your kind permission, procced to deal as briefly as possible with the peculiarly advantageous strategic position which Newfoundland occupies in regard to the ocean grain route, and secondly the coinmand of the cables. After dealing with the beneficent results that will be certain to accrue from utilising this strategic position of the Colony, I shall outline a proposal in the carrying out of which the Colony would, to some

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extent, at any rate, participate. In order to give point to a portion of my argument, I shall be obliged to make special reference to the trade of the Dominion of Canada; and I trust that my distinguished friend, Sir Wilfrid Laurier, may be able to approve and endorse the observations that I shall make. One of the most serious economic and strategic situations, arising out of the recent Steamship Combine, arranged by Mr. Pierpont Morgan, is that the Trust menaces the Ocean grain route and makes the British Isles even more dependent than ever on the United States for the supplies required to feed the inhabitants during a prolonged period of warfare. Located in Newfoundland on the Eastern rim of the American Continent, with the great sea-road passing almost within sight of our doors, we can note a phase of this subject which strikes us as being of momentous import, although it is probably overlooked by those in England who are studying the more immediate con- sequences of the new arrangement.

The SECRETARY OF STATE: I beg your pardon; I do not wish to interrupt you; but does not that come on at a later stage-the question of the Shipping Subsidies; you are not now referring to the question which we have been discussing, which is really of the contribution, direct or indirect, the Colonies will be able to make to Naval Defence.

Sir ROBERT BOND: I was leading up to that, but if you think it better that the statement, which is nocessarily a lengthy one, should come on later, I will defer my observations.

The SECRETARY OF STATE: I think perhaps it will be more appro- priate to bring it on when we come to discuss the question of Steamship Subsidies which is put down on the paper.

Sir ROBERT BOND: What I'was going to deal with was the advantage of fortifying and garrisoning St. John's and another port in Newfoundland, and making St. John's a naval station, to which scheme the Colony would contribute. However, if you think it better to defer the inatter for another occasion I shall be very pleased to bring it up again, or to subunit a memorandum dealing fully with the subject.

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The SECRETARY OF STATE: Well then, gentlemen. I think several of our colleagues have other engagements, it would be desirable, as speedily as possible, that we should conclude the present day's proceedings. We have had an extremely interesting general discussion upon the whole subject; and in regard to that I personally wish to make only one or two remarks. What I really rose to say was whether we can now come to some practical progress on the subject we have been discussing. The remarks which I have to make refer to a very great deal of competent criticism on the comparison laid before the Conference between the military and the naval expenditure of the Mother Country and the Colonies: Of course, any comparison of that kind is inadequate to show the whole state of the case." It was not pu for that purpose; nor, indeed, do I rely upon its absolute accuracy. was merely to suggest the extreme disproportion which prevails at present. agree with what Sir Gordon Sprigg and Sir Alfred Hime have said, that the case of the South African Colonies is distinct from others, and probably if the charge is to be calculated per head, it should be counter upon the head of the taxpaying population, and I can hardly include in that torm the vast aboriginal population which contributes very little indeed to the taxes. It would be fair, therefore, to make a very considerable alteration on that account. And I am fully sensible also of the very large expense, which has been borne both by Natal and the Cape in connection with the war, although I believe I am right in saying that up to the present time neither Colony has put a single penny of new taxes upon its population. Now, that is a very different position to the position of the Mother Country.

Sir GORDON SPRIGG: We have not had the opportunity.

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