dditional "H" class submarines for four of the "L" class, as the
vessels of the "H" class were capable of more rapid construction, thus
making the total number of submarines on order 74. Approval was also
sought for the addition of 24 destroyers and four "P" boats to the
programme, bringing the number of destroyers on order up to a total of
89.

The programme was approved, a slight change being made in the matter of
the seaplane carriers by fitting out one of the "Raleigh" class of
cruisers as a seaplane vessel in order to obtain an increased number of
vessels of this type more rapidly than by building. Later in the year
the cruiser _Furious_ was also converted into a seaplane carrier, and
she carried out much useful work in 1918.

MERCANTILE SHIPBUILDING

A greatly increased output of merchant ships had been anticipated under
the new organization, which placed mercantile construction under the
Admiralty Controller instead of under the Ministry of Shipping. It was
expected that the difficulties due, under the previous arrangement, to
competing claims for steel and labour would vanish with very beneficial
results.

It was, as previously stated, mainly with this object that the Admiralty
had agreed to the change. The start was promising enough. After a review
of the situation hopes were held out that during the second half of 1917
an addition of about 1,000,000 tons of shipping from the shipyards
within the United Kingdom would be effected. This figure, indeed, was
given to the House of Commons by the Prime Minister on August 16, 1917.

On comparing this figure with that of the first half of the year (a
total of about 484,000 tons) there was distinct cause for gratification;
it is right to state that Admiralty officials who had previously been
watching mercantile shipbuilding regarded the estimate as very
optimistic. Further, it was anticipated by the then Admiralty
Controller, Sir Eric Geddes, that during the year 1918, with some
addition to the labour strength, a total output of nearly two million
tons was possible, provided steel was forthcoming, whilst with
considerably greater additions to the labour strength and to the supply
of steel, and with the help of the National Shipyards proposed by the
Controller, the total output might even reach three million tons.

The actual results fell very short of these forecasts, the total output
for the second half of the year was only 620,000 tons, the monthly
totals in