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"Cambrian” and the "Payche" for "the purpose of training a New Zealand Naval Reserve?” What I suggest is, that you should place these two ships at the disposal of the New Zealand Government. This would give to New Zealanders that direct interest in naval concerns which to me seems so valuable. As to the third ship men- tioned in your letter, though I do not think we can, under the circumstances, expect you to supply more than three ships, still it would have been a great satisfaction to me had I been able to report to the New Zealand Cabinet that there were two other cruisers, in addition to the “Cam- brian" and "Psyche," available for manœuvring purposes, and which would fit in with the Austra- lian Fleet. If this third ship, or the two if you can let us have them, were for the time being also placed at the disposal of the New Zealand Government, it would add to our interest gene- rally; would assist us in our administration of the Cook Islands; and would enable us to say to the people of the Commonwealth that we had something with which to assist them.
The 100,000l. a-year now provided by New Zealand, and the whole of the present New Zealand Naval Reserve would be available for the three or four ships. The cost would probably exceed 100,000l. per annum, and I should be obliged if you would let me know by how much.
I have not suggested that New Zealand should acquire ships at present, partly because for the next year or two the country has sufficient financial responsibility, and partly because I believe some organisation should be created to advise Australia and New Zealand before any further ships are acquired. If Canada and South Africa were included in this organisation it would be even more effective. Do you think it impracticable that the Prime Ministers and Ministers of Defence of the Commonwealth and of New Zealand, and, say, one or more repre- sentatives of the British Government or the Admiralty, should from time to time meet and discuss this question of the provision of necessary ships, and other cognate questions, from the point of view of Imperial necessities in the Southern Pacific? Indeed, I do not see why such a representative body might not be considered a Sub-Committee of the Committee of Imperial Defence, to give advice to their respective Govern- ments on concentration in peace time for manœuvre
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