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and to send a third in lieu of the three destroyers and two submarines mentioned in previous discussions. It may shorten further deliberations on the naval question in the Pacific if I write what is in my mind.

Your letter raises some controversial questions which we have already talked over, and which do not lend themselves to discussion by letter. Upon one point, however, there must be no misunder- standing. I refer to the question raised by you that you were reluctant to take any steps which would appear to commit us to favouring the principle of local navies against that previously adopted by New Zealand of one Imperial Fleet." My comment upon this sentence in your letter is that local units and an Imperial Fleet are not necessarily antagonistic. Sentiment and other conditions do lead to the desire for local units, but there is not the slightest reason why the Dominions interested, if they do not realise it at the first, should not at a very early date learn the strategical importance of unity in control and the necessity for directing their individual efforts in providing separate units in such a way that each unit will fit in, one with the other, whenever con- centration does take place. Let me further add that in my judgment an Imperial Fleet should consist of ships, it is true, and also of personnel provided by each constituent part of the Empire.

As to the 1909 Agreement, you say, great changes have since occurred in the naval situation." This may be so, but certainly New Zealand thought the situation fairly serious in 1909 and gave expression in material form to her desire to help the Mother Country. In view of what has transpired in my talks with yourself and with the Admiralty, and considering what you have written in your letter of the 14th February, I cannot ask that the Agreement of 1909 should be carried out, but I do desire to know whether New Zealand can feel assured that any policy agreed upon will have some permanency. You will no doubt understand that the New Zealand Cabinet must consider any suggestions made before a final conclusion can be arrived at.

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The principles that guide me in what I now write to you are :——

(a.) The utilisation of New Zealand national sentiment and local patriotism to give our people that interest in Naval Defence which, in my

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