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PUBLIC RECORD OFFICE

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TITLUC.O. 885

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PUBLIC RECORD OFFICE, LONDON

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

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Army, and only calling them out in times of national danger and difficulty. If we can arrange as to the limits beforehand, you have gained all that you seek, and I, on behalf of our Colony, knowing men will only onlist knowing where they have to serve, I believe under these conditions

you may get them to enrol.

The SECRETARY OF STATE FOR WAR: That is to say, if our proposal takes this form, we have a completo call on those troops for three special places fixed beforehand, and we propose to pay so much; for employ- lent anywhere else, we should be dependent upon the will of the Colonial Government at the time.

Sir ALBERT HIME: Might I say, Sir, with regard to the memorandum which has been circulated, there is just one paragraph, the penultimate paragraph which does not agree with the conclusion arrived at, which Mr. Fuller and I agreed to act upon. 1 think I sent to Sir John Anderson the correct one. This is the one I received from Sir William Nicholson :-

"The possibility of affiliating the Colonial units rendered available "for Imperial service to regiments of the Regular Army was mentioned

as being likely to render service in such units more popular."

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That has been altered in the circulated one to:

"It was considered that having regard to the reputation won by "Colonial contingents in South Africa, it would be better not to "affiliate the Colonial units organised for Imperial service to regiments

of the regular Arnïy."

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I do not subscribe to that, sir, because I think it quite possible that Natal and the Cape would like to have these units affiliated to Imperial regiments.

The SECRETARY OF STATE FOR WAR: Wo wero not quite certain on that point, as New Zealand are taking an opposite view.

Sir ALBERT HIME: I sent it to Sir John Anderson.

The SECRETARY OF STATE FOR WAR: Send it to us by letter and

it will be for us to put it in train.

Mr. FULLER: I think it should be left an open question.

The SECRETARY OF STATE: There still remains, as I understand, to be settled the exact limitations within which the New Zealand troops should be called out.

The SECRERARY OF STATE FOR WAR: I understand Mr. Seddon's offer is firm for South Africa, for China, and for Canada, but it is not firm for the North-west Frontier of India, and we can therefore only put that as proposal to him for further consideration, but so far as those limits are concerned for which he asks us to pay 6. a year for each reservist it would be for those three places and no more.

Mr. SEDDON: I think I suggested extension to the islands in the Western Pacific.

The SECRETARY OF STATE FOR WAR: I have hardly had notice of this.

Mr. SEDDON: I am not in favour of those forming the reserve in New Zealand being made part of Imperial regiments..

[The Conference then consulted in private.]

On resuming-

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NAVAL DEFENCE.

The SECRETARY OF STATE: I will call upon Lord Selborne to make a statement in regard to naval defence.

I not

The FIRST LORD OF THE ADMIRALTY I need not, Mr. Chamber- lain, trespass long on the time of tho Conferonce. I met the Prime Ministers of the Capo, Natal, of the Dominion, the Commonwealth, of New Zealand, and of Newfoundland. I have repeated to them the arguments that I used in my previous memorandum and round this table, and which you, Mr. Chamberlain, have used in your discussions with the Prime Ministers. I have pointed out to them how essentially the conditions of sea warfare differ from the conditions of land warfare, and how essential it appeared to me to be to consolidate the naval strength of the Empire so that the wholo of it might at any one moment be thrown on the attacked spot. also venture to point out-and although my arguments were always of course concurred in by the Colonial Prime Ministers, yet I wish to take this opportunity of thanking them for the extreme courtesy and friend- liness with which they listened to my frank observations-I pointed out to them how great a relief of the burdens of the Colonial taxpayer the burden which the British taxpayer bore on his shoulders conferred. I pointed out how large was the contribution of the British taxpayer compared to the Colonial taxpayer to naval defence, and I also pointed out how different the circumstances of the Colonial taxpayer would be, if he had not the British taxpayer to depend on in this matter. As I say, my argument did not always carry conviction, but our Conferences were of the most friendly sort. As a result, Cape Colony and Natal have offered to the British Navy 50,000l. and 35,0001, a year without any conditions, as a general contribution, and I wish to say emphatically how much the Admiralty appreciate this mark of con- fidence. Newfoundland has offered to contribute 3,0001. a year to a branch of the Royal Naval Reserve in Newfoundland not to be less than 600 men, and to contribute 1,8001. for the proper equipment of the drill ship to be stationed in the island. The Dominion of Canada has not been able to make any sugges- tion for a naval contribution. An agreement with the Commonwealth of Australia and with New Zealand is almost concluded. I think I may say that on the general lines of the Agreement there is no further question at issue between us. Australia offers 200,000 a year and New Zealand 40,0001. a year, half the cost, that is, of the maintenance of an improved Austra lian squadron and for the establishment of a branch of the Royal Naval Reserve in Now Zealand and in Australia, the reservo to consist at first of 700 seamen and stokers and 25 officers. I have great pleasure in offering a definite number of naval cadetships to New Zealand and Australia. The exact terms on which those cadetships shall be given in the Colonies shall be a matter of consultation between the Admiralty and the Colonial Governments. Further we propose that one ship on the Australian Station should be manned exclu- sively by Australians and New Zealanders. That I think is a great advance, and in respect, of course, of questions of local pay and the detailed regulations of establishing this ship on the best basis, we desire to avail ourselves in the freest manner of the advice of Sir Edmund Barton and Mr. Seddon.

The only point really which remains now for discussion is one in which the interest of the Admiralty is less than that of the Commonwealth or New Zealand. It is as to the exact number of ships of the squadron which should have their recognised base in time of peace in New Zealand waters.

I have pointed out to Mr. Seddon that with the numbers for which he has asked it would be very difficult to work the station, and that it could not be done at all if he did not agree that the Commander-in-Chief should be allowed liberally to interpret the words of the section. Mr. Seddon assured me that we should find no unreasonable objections on his part, but he claimed that the number of ships mentioned in the final section of the draft agreement should be those whose base should be in New Zealand waters. The representatives of the Commonwealth have not been able to assent to that, and that is the one question that remains to be decided. I inserted the clause as desired by Y 3