CANADA 673 



of the shipbuilding industries in Canada, but we cannot, upon any business or economic con- 

 siderations, begin with the construction of Dreadnoughts, and especially we could not do so 

 when these ships are urgently required within two or three years at the outside for rendering 

 aid upon which may depend the Empire's future existence. According to my conception, 

 the effective development of the shipbuilding industries in Canada must commence with 

 small beginnings and in a businesslike way. I have discussed the subject with the Admiralty, 

 and they thoroughly realise that it is not to the Empire's advantage that all shipbuilding 

 facilities should be concentrated in the United Kingdom. I am assured, therefore, that 

 the Admiralty are prepared in the early future to give orders for the construction in Canada 

 of small cruisers, oil tank vessels, and auxiliary craft of various kinds. The plant required 

 is relatively small as compared with that which is necessary for Dreadnought battleships, 

 and such an undertaking will have a much more secure and permanent basis from the busi- 

 ness standpoint. For the purpose of stimulating so important and necessary an industry 

 we have expressed our willingness to bear a portion of the increased cost for a time at least. 

 I see no reason why all the vessels required in future for our government service should not 

 be built in Canada, even at some additional cost. In connection with the development 

 of shipbuilding I would not be surprised to see the establishment of a high class of engineer- 

 ing works which will produce articles now imported and not at present manufactured in 

 Canada. Therefore, although the sum which we propose to devote for necessary naval aid 

 at this critical juncture is to be expended in Great Britain, yet we believe that this step will 

 result, under the conditions which I have described, in the very marked development of more 

 than one industry in Canada, and that, even from a purely economic and material standpoint, 

 the step has much to commend it." 



The Canadian expenditure now proposed was, in Mr. Borden's view, a moderate one, 

 regarded not as the beginning of a system of periodical contributions, but as an emer- 

 gency aid at a moment of crisis : 



" If we should neglect the duty which I conceive we owe to ourselves, and if irreparable 

 disaster should ensue, what will be our future destiny? Obviously as an independent nation 

 or as an important part of the great neighbouring Republic. What then would be our 

 responsibilities, and what would be the burden upon us for a protection on the high seas 

 much less powerful and less effective than that which we enjoy to-day? Take the case of 

 one nation whose territory, resources, population, and wealth may fairly be compared with 

 those in Canada. The naval estimates of Argentina for the four years from 1909 to 1912 

 inclusive amounted to $35,000,000 (7,000,000). No information is available as to the 

 exact proportion of the last-mentioned sum which has been appropriated for naval purposes, 

 but it is understood that the far greater portion is for naval construction. It is safe, there- 

 fore, to estimate that during the past four years Argentina has expended for naval purposes 

 not less than from $65,000,000 to $70,000,000 (13,000,000 to 14,000,000). The Federal 

 and State expenditure of the United States comprises a total outlay for armaments of between 

 $250,000,000 and $300,000,000 (50,000,000 and 60,000,000), or at the rate of $2.75 per 

 head. Similar expenditure by Canada would mean an annual outlay of some 20,000,000 

 to $25,000,000, or between $80,000,000 and $100,000,000 during the same period. 



" It is apparent, therefore, that the aid which we propose to bring at this juncture is of a 

 moderate and reasonable character. For 45 years as a Confederation we have enjoyed 

 the protection of the British Navy without the cost of a dollar. ... .. . So far as official 



estimates are available, the expenditure of Great Britain on naval and military defence for 

 the provinces which now constitute Canada during the nineteenth century was not less than 

 $400,000,000 (80,000,000). Even since the inception of our Confederation, and since 

 Canada attained the status of a great Dominion, the amount so expended by Great Britain 

 for the naval and military defence of Canada vastly exceeds the sum which we are now 

 asking parliament to appropriate. From 1870 to 1890 the proportionate cost of the North 

 Atlantic Squadrons which guarded our coasts was from $125,000,000 to $150,000,000 (25,- 

 000,000 to 30,000,000). From 1853 to 1903 Great Britain's expenditure on military defence 

 in Canada runs closely to $100,000,000. " 



As regards the voice which it had been arranged that Canada should have on the 

 Committee of Imperial Defence, Mr. Borden said: 



" With increasing power and influence there has necessarily come, by sure and gradual 

 steps, a certain development in our relations with the United Kingdom and the other Domin- 

 ions. ... In this constitutional development we are necessarily confronted with the 

 problem of combining co-operation with autonomy. It seems most essential that there 

 should be such co-operation in defence and in trade as will give to the whole Empire an 

 effective organisation in these matters of vital concern. On the other hand, each Dominion 

 must preserve in all important respects the autonomous government which it now possesses. 



"The responsibility for the Empire's defence upon the high seas, in which is to be found 

 the only effective guarantee of its existence, and which hitherto has been assumed by the 

 United Kingdom, has necessarily carried with it the responsibility for and the control of 



