ous points on the
long line they hold, especially in Champagne. Association with both our
allies in the western theatre has only deepened our admiration of their
resolute tenacity and fighting qualities.

In the Eastern theatre the violent German attacks on Warsaw have failed
in their purpose, and a considerable concentration of German troops to
attack the Russian positions in East Prussia, after causing a
retirement, are now either well held or are being driven back. In the
Caucasus fresh defeats have been inflicted by the Russians on the Turks,
and the latter have also been repulsed by our forces in Egypt when they
attempted to attack the Suez Canal. The operations now proceeding
against the Dardanelles show the great power of the allied fleets, and,
although at the present stage I can say no more than what is given in
the public press on the subject, your Lordships may rest assured that
the matter is well in hand.

The work of supplying and equipping new armies depends largely on our
ability to obtain the war material required. Our demands on the
industries concerned with the manufacture of munitions of war in this
country have naturally been very great, and have necessitated that they
and other ancillary trades should work at the highest possible pressure.
The armament firms have promptly responded to our appeal, and have
undertaken orders of vast magnitude. The great majority also of the
employees have loyally risen to the occasion, and have worked, and are
working, overtime and on night shifts in all the various workshops and
factories in the country.

Notwithstanding these efforts to meet our requirements, we have
unfortunately found that the output is not only not equal to our
necessities, but does not fulfill our expectations, for a very large
number of our orders have not been completed by the dates on which they
were promised. The progress in equipping our new armies, and also in
supplying the necessary war material for our forces in the field, has
been seriously hampered by the failure to obtain sufficient labor, and
by delays in the production of the necessary plant, largely due to the
enormous demands not only of ourselves, but of our allies.

While the workmen generally, as I have said, have worked loyally and
well, there have, I regret to say, been instances where absence,
irregular timekeeping, and slack work have led to a marked diminution
in the output of our factories. In some cases the temptatio