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the fact that a large number of German merchant-vessels carried guns and ammunition, and that their Government could and fully intended to warn them by wireless telegraphy of the outbreak of war, so that they could mount their guns on the high seas and immediately attack British commerce, and lastly, the increased power of remaining at sea which the use of oil fuel, and still more, the adoption of internal combustion engines would confer on commerce destroyers. British vessels were scattered all over the world, and the Admiralty feared that some little time might elapse before the hostile vessels could be hunted down, and that during this period there might be an appreciable percentage of loss by the capture of British ships."

THE PRIME MINISTER said that the question had been exhaustively examined by Mr. Austen Chamberlain's Committee. Their Report was not yet five years old. The essence of that Report was that the only satisfactory form of national guarantee against the war risks of shipping was the maintenance of a powerful Navy.

LORD CREWE said that before the merits of the main question were discussed he would like to know the exact status of these armed German merchant-vessels. So far as his recollection went the Germans claimed the right at The Hague Conference of 1909 to convert such into war-ships on the high seas, but we declined to accept their claim and the question was expressly excepted from the Convention relative to the conversion of merchant-ships into war-ships. How then was it proposed to treat them, were they privateers, or were they liable to treatment as pirates, or were they legitimate combatants? The answer to the question was germane to the matter before them. If they were legitimate combatants the adoption of a similar policy might in view of the great superiority in numbers of our mercantile marine be an efficient antidote.

SIR EYRE CROWE said that the British delegates to The Hague Convention of 1907 had instructions to oppose the conversion of merchant-vessels into war-ships, but he must admit that they had not found any good reasons to adduce in support of their contentions.

LORD HALDANE said that he could not see any valid reason why merchant- vessels should not be converted into war-ships so long as it was done openly, but of course they could not resume their status as merchant-vessels again during the war.

THE PRIME MINISTER said that there seemed to be some doubt as to the precise treatment to be accorded to these ships. This should be removed and definite instructions issued.

四

MR. CHURCHILL said that the Admiralty could not say positively which German ships were armed, but they had evidence which pointed to their number being considerable. As to counter measures, the Admiralty had been negotiating with the big steam-ship companies with a view to the provision of defensive armament. They had 150 47-inch guns available at present and they proposed to pay for the mounting of these, for the provision of magazines and to arrange for Naval Reserve crews. Two vessels had already got their magazines fitted. He hoped that the scheme might be considerably extended. The prospect of 40 German merchant- vessels being converted into war-ships with orders to prey upon our commerce was serious. To build a large number of cruisers specially to deal with them would be absurd and expensive. The only direct answer therefore seemed to be to arm our own merchant-vessels, the bulk merely for defensive purposes, but some would be taken up as cruisers.

LORD HALDANE pointed out that the Germans had the considerable advantage that their merchant sailors had all had naval training.

MR. MCKENNA enquired whether it was really the case that the Germans had so many as 150 ships able to prey upon our commerce with any hope of success. His recollection was that the number of German merchant-vessels with a speed exceeding 14 knots was comparatively small. These vessels almost all ran to scheduled time, and their position was known and noted day by day. At any particular moment the majority of them would probably be in the North Sea. Most of those on the high seas would have a large number of passengers on board, subjects of many different nations with whom they were under contract to land them at specified ports. These ships were surely not provisioned and coaled on a scale to enable them to keep the sea

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