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t an island empire can only maintain its position by possessing an overpowering naval force. As I have said before, I am fully convinced of the fact that in the development of her Navy, as of her Army, Japan has no aggressive designs. Her aspiration is the security and prevention from invasion of her island and the preservation of her national independence. At the same time, situated as she is in the great Pacific Ocean, she has palpably, from her position, rights and responsibilities and duties outside the immediate confines of her Empire. That, I think, will be admitted by any one. The phrase, "spheres of influence" has become somewhat hackneyed of recent years, and it has occasionally been used to give colour to aggressive designs. There may, too, be people who would say that spheres of influence is not a term that can properly be applied to a great water-way such as the Pacific. I am not, however, on the present occasion arguing with pedants. What I desire is to broadly emphasise the fact that in the future of the Pacific--those innumerable isles dotted here and there over its surface, Japan is a factor that cannot be left out of account. Year by year her position there is increasing in importance. Steamers ply to her ports weekly from Vancouver and San Francisco. The Japanese population are emigrating to the Pacific shores of America, the trade and commerce of Japan with the American Continent are growing and broadening. Everything in fact tends to show that within a comparatively short space of time Japan will have asserted her position, not only as a Great World Power, but as a great commercial nation in the Pacific. What is to be the outcome of it all? is the question that will naturally arise to the mind. I think that one outcome of it will be, as I have shown, the capture by Japan of the Chinese trade, if not in its entirety, at any rate in a very large degree. Another outcome will, I believe, be the enormous development of Japanese trade with both the United States and Canada. Some people may remark that these are not essentially political matters, and that I am somewhat wandering from my point in treating of them in connection with the influence of Japan upon the world generally. I do not think so. A nation may assert its influence and emphasise its importance to just as great an extent by its trade as by the double-dealings of diplomacy or by other equally questionable methods. Of one thing I am convinced,
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