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doubt still remains as to the answer to be given to the question referred to us, we think it would be resolved by a consideration of the administrative difficulties inseparable from any scheme of National Guarantee which are discussed and developed in this Report. The immense difficulties attendant on the determination of values, and on the settlement of claims are themselves a serious obstacle to the adoption of any scheme The more closely they are examined the more formidable do they appear, and we are unable to discern any solution of them which is not open to serious criticism and even to grave abuse.

14. If the dangers by which our commerce and industry are threatened were as great as they appear to the advocates of such schemes, or if the remedy provided by a National Guarantee in any form were complete, it might perhaps be worth while to face the enormous administrative difficulties involved in the adoption of a scheme, to accept the risk or even the certainty of having to pay some fraudulent claims, and take the financial leap in the dark involved in accepting an unknown, but in any case considerable, financial liability. But this course could only be justified if the case against inaction were overwhelming and the remedy certain and complete. opinion neither of these conditions holds good, and we are therefore unable to recommend the adoption of any form of National Guarantee against the war risks of shipping and maritime trade, except that which is provided by the maintenance of a powerful Navy.

In our

15. We desire to record our obligations to our Secretary, Mr. George H. Duckworth, for the very valuable assistance which he has given us, both during the progress of our inquiry and in the preparation of our Report.

(Signed)

AUSTEN CHAMBERLAIN (Chairman).

R. B. FINLAY.

THOMAS GLEN-COATS.

JAS. L MACKAY.

G. H. MURRAY.

H. LLEWELLYN SMITH.

C. L. OTTLEY.*

EDWARD BEAUCHAMP. HENRY N. GLADSTONE. FRED. HUTH JACKSON. ARTHUR LINDLEY.

GEORGE H. DUCKWORTH (Secretary).

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• Subject to reservation.

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