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or Australasian waters, we should of course at once replace our vessels so as to maintain an effective superiority. In the meantime, if your Government is desirous of having newer ships and of further aiding the naval resources of the Empire, you could not do better than undertake the building of modern light cruisers to replace in the course of the next few years the older vessels which will be based on New Zealand ports. The cost of maintaining the three ships in New Zealand waters would considerably more than absorb the 100,000l. a-year contribution which the Dominion pays at present. There would be no difficulty in earmarking the money to that object were that desired. The cost of maintaining the "New Zealand" battle-cruiser herself, which is considerably over 100,000l. a-year, would, of course, continue to be borne by us so long as she is available for general Imperial service. It would no doubt be possible to arrange for some regular means of consultation between the Commodore of the three New Zealand cruisers and yourself or your successors in the Ministry of Defence in regard to the training of the New Zealand Naval Reserve, whose development would form a feature of our future policy. Were a force of trained naval reservists gradually to become available in New Zealand there would be no great difficulty in an additional ship being stationed in reserve at Auckland, which in time of war or emergency might be mobilised for service.

You will, I hope, understand that these are suggestions which arise out of our discussion, and not final or formal proposals for decision. We should be very glad if you would consider them well and let us know when you would like to have another discussion upon them.

Yours very sincerely,

WINSTON S. CHURCHILL.

(Confidential.)

Queen Anne's Mansions,

Dear Mr. Churchill,

St. James's Park, S.W.

March 18, 1913.

I have already acknowledged receipt of your letter of the 14th February last, and I thank you for the valuable information contained therein. I am also obliged to you for the suggestion that you would be prepared to maintain on the New Zealand Station two light cruisers,

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ا سا شداد

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