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four, the Admiralty under the Agreement of 1909 only proposed to keep there one Dreadnought battle-cruiser. The others are maintained in pursuance of the understanding with Japan that we should have on the station a force superior to that of the strongest European fleet in the Far East and for general Imperial purposes.

So far as New Zealand waters are concerned, we recognise the desirability of encouraging the development of naval sentiment and naval interest in the Dominion. We are reluctant to take any steps which should appear to commit us to favouring the principle of local navies against that previously adopted by New Zealand of one Imperial Fleet. We should, however, be prepared to afford facilities to New Zealanders for training and serving in British ships of war, and we will assist, to the best of our ability, any steps that may commend themselves to your Government for building up a New Zealand Naval Reserve. The waters of New Zealand and the harbours available do not lend themselves to the effective employment of torpedo-craft, nor is there any service which at present such vessels could render which could not be better otherwise provided for. In response to your wish, a statement will be prepared as to the adequacy of the existing military defences of New Zealand ports to ward off any casual cruiser attack that might possibly be made upon them. We are prepared, however, to maintain on the New Zealand Station for the purposes of training & New Zealand Naval Reserve, as well as for the ordinary cruising work in the islands, the two light cruisers which are at present on the Austra- lian Station (" Cambrian and Psyche," or similar vessels), and to send a third in lieu of the three destroyers and two submarines mentioned in previous discussions. These vessels are quite equal as ships of war to commerce protection and other military purposes likely to be required of them in New Zealand waters in the present period. It is true that the Board of Admiralty offered in 1909 to detail two "Bristol" type cruisers in New Zealand waters, but, as I pointed out, great changes have since occurred in the naval situation, The need of fast light cruisers is serious at home; and there is no military reason which at present requires them in New Zealand. In the event, however, of newer or better vessels of any foreign Power being stationed in or about New Zealand

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