6 72 CANADA 



result has been brought about by any reduction in expenditure, for the case is practically the 

 reverse. Great Britain's total naval expenditure in 1902 was less than $152,000,000 (30,- 

 400,000). For the present fiscal year it exceeds $220,000,000 (44,000,000). Why then, 

 has the naval force of the Empire been so enormously reduced while at the same time the 

 expenditure has increased nearly 50 per cent? For the simple reason that the increasing 

 strength of other navies, and especially of the German Navy, has compelled Great Britain 

 not only to increase her fleet, but to concentrate it in the vicinity of the British Islands. . . . 



"It is neither necessary nor desirable to debate or discuss the probability or imminence 

 of war. The real test of our action is the existence or non-existence of absolute security. .It 

 should never be forgotten that without war, without firing a shot or striking a blow, 

 our naval supremacy may disappear, and with it the sole guarantee of the Empire's con- 

 tinued existence. . . . 



" The fact that trade routes, vital to the Empire's continued existence, are inadequately 

 defended and protected by reason of the necessary concentration in home waters is exceed- 

 ingly impressive, and even startling. Even during the present year the battleships of the 

 British Mediterranean Fleet, based on Malta, have been withdrawn and based on Gibraltar, 

 in order that they might become more easily available for necessary aid in home waters. 

 The Atlantic Fleet, based on Gibraltar, has been withdrawn to the vicinity of the British 

 Islands for the same reason. Under such conditions the British Flag is not predominant in 

 the Mediterranean, and with every available exertion of the whole Empire it may be impos- 

 sible to regain the necessary position of strength in that great highway before 1915 or 1916. 

 Austria-Hungary, with only 140 miles of sea coast and absolutely no colonial possessions, is 

 building in the Mediterranean a formidable fleet of Dreadnoughts which will attain its full 

 strength in about three years, and which will be supported by strong battleships of the pre- 

 Dreadnought type, and by cruisers, torpedo craft, and other necessary auxiliaries. The 

 fleet of Italy in the same theatre will be even more powerful and more formidable. The 

 withdrawal of the British Flag and the British Navy from so many parts of the world for 

 the purpose of concentration in home waters has been necessary, but unfortunate. Our 

 Navy was once dominant everywhere, and the White Ensign was the token of naval suprem- 

 acy in all seas. Is it not time that the former conditions should, in some measure, be restored ? 

 Upon our own coasts, both Atlantic and Pacific, powerful squadrons were maintained 12 

 years ago. To-day the flag is not shown on either seaboard. I am assured that the aid 

 which we propose will enable such special arrangements to be consummated that, without 

 courting disaster at home, an effective fleet of battleships and cruisers can be established in 

 the Pacific, and a powerful squadron can periodically visit our Atlantic seaboard and assert 

 once more the naval strength of the Empire along these coasts. I do not forget, however, 

 that it is the general naval supremacy of the Empire which primarily safeguards the Oversea 

 Dominions. New Zealand's battleship is ranged in line with the other British battleships 

 in the North Sea, because there New Zealand's interests may best be guarded by protecting 

 the very heart of the Empire." 



As regards the three Canadian battleships now to be added to the navy, Mr. Borden 

 pointed out that, under the Admiralty, the Empire now had what he had convinced him- 

 self was the most thorough and effective naval organisation in the world, of which it 

 was the best Canadian policy to make use. The hazardous and costly experiment of 

 building up a separate naval organisation for Canada was quite unnecessary, and in any 

 case could only provide a poor and weak substitute. In the present emergency the 

 Canadian ships were best employed as part of the Empire navy under the Admiralty of 

 the mother-country: 



" Those ships will be at the disposal of His Majesty the King for the common defence of 

 the Empire. They will be maintained and controlled as part of the Royal Navy, and we have 

 the assurance that, if at any time in the future it be the will of the Canadian people to 

 establish a Canadian unit of the British Navy, these vessels can be called by the Canadian 

 government to form part of the Navy, in which case, of course, they will be maintained by 

 Canada and not by Great Britain. In that event, there will, necessarily, be reasonable 

 notice, and, indeed, Canada would not desire or suggest the sudden withdrawal of so powerful 

 a contingent from any important theatre in which the naval forces of the Empire might be 

 exposed to severe and sudden attack. In the meantime I am assured that special arrange- 

 ments will be made to give Canadians an opportunity of serving as officers in these ships. . . . 



" The ships will be built under Admiralty supervision in the United Kingdom for the 

 reason that, at present, there are no adequate facilities for constructing them in Canada. 

 The plant required for the construction of Dreadnought battleships is enormous, and it would 

 be impossible at present to have shipbuilding in this country on such a scale. In any case, 

 only half could be built in Canada, because the machinery for armour and guns would, 

 necessarily, be constructed or manufactured in the United Kingdom. The additional 

 cost of construction in Canada would be about 12 million dollars for three, and it would 

 be impossible to estimate the delay. No one is more eager than myself for the development 



