. It seems to me of the greatest possible importance that
this matter of an Empire naval policy and an Empire naval organization
should be settled at the earliest possible moment, and that it should be
looked at from the broadest point of view.

I do not think that we in this country can claim to have taken into
sufficient account the very natural views and the very natural ambitions
which animate the peoples overseas. We have, in point of fact, looked at
the whole question too locally, whilst we have been suggesting to the
Dominions that they are inclined to make this error, and unless we
depart from that attitude there is a possibility that we shall not reap
the full benefit of the resources of the Empire, which are very great
and are increasing. In war it is not only the material which counts, but
the spirit of a people, and we must enlist the support, spontaneous and
effective, of every section of the King's Dominions in the task of sea
defence which lies before us, consulting fully and unreservedly the
representatives of our kith and kin, and giving them the benefit of
whatever instructed advice we, with ancient traditions and matured
knowledge, may possess.

In framing our future naval policy it is obvious that we must be guided
by what is being done abroad. We are bound to keep an absolutely safe
margin of naval strength, and that margin must exist in all arms and in
all classes of vessels. At the moment, and no doubt for some time to
come, difficulties in regard to finance will exist, but it would seem to
be nothing more than common sense to insist that the one service which
is vital to our existence should be absolutely the last to suffer for
need of money. During a period of the greatest financial pressure it may
be necessary to economize somewhat in the construction of new ships, and
in the upkeep of certain of our naval bases which the result of the war
and consequent considerations of future strategy may suggest to be not
of immediate importance, although even here it may well be necessary to
develop other naval bases to meet changed conditions; but we cannot
afford to fall behind in organization, in the testing and development of
new ideas, or in the strength of our personnel or in its training. A
well trained personnel and a carefully thought out organization cannot
by any possibility be quickly extemporized.

It is the height of economic folly to stint experimental research, for
it is in times of stres