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Let me, in conclusion, observe that there is certainly one way in which your statement “that local units and an Imperial Fleet are not neces- sarily antagonistic" can be sustained. The development of a strong Imperial Squadron of the finest ships in the world, apart from the minimum numbers necessary for the Home Defence of the United Kingdom, is the surest means by which really effective aid can be conveyed to any of the Dominions which may be specially threatened at any time. One or two capital ships more or less on the spot would be of no avail in some of the contingencies you have in your mind. Nothing short of a great and powerful squadron could ward off the dangers to which you attach importance. Those dangers are at present extremely remoto, and they will continue to be distant as long as the British naval power in the decisive theatre is strong and unbroken. It is, however, extremely desirable— as I traced in my naval statement to the House of Commons-that the Dominions should them- selves develop the naval establishments, light cruiser and flotilla forces, reserves of men, and other accessories, which would enable the Imperial Squadron to operate in any particular theatre of the British Empire in all the integrity of a completed fleet.

Yours very sincerely,

WINSTON S. CHURCHILL.

(Confidential.)

Dear Mr. Churchill,

April 9, 1913.

There are some points in your letter of the 7th April which no doubt will be made more clear when the "Scheme" which is being pre- pared in detail is made available. For instance, the "procedure for communication and consulta- tion between the Officer Commanding the Squadron and the New Zealand Government" when submitted may bring the New Zealand Government into closer touch with naval matters than at present, but will not, I think, create that "direct interest" which I wrote of in my letter us being so valuable. The expression in my letter, "place the ships at the disposal of the New Zealand Government," you have rightly inter- preted as under the administration of the New Zealand Government," and I had very largely in

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