CAPTAIN CRAIGI beg to ask the Prime Minister whether, in view of Germany's final refusal to discuss the subject of disarmament at the forthcoming Peace Conference, he will stop all pending discharges of workmen from Woolwich Arsenal and Dockyard till after the Conference has completed its labours.
I beg also to ask the Prime Minister whether, in view of Prince von Bulow's recent statement in the German Reichstag on the subject of disarmament, the Government intend to proceed immediately with the building of the third battleship of this year's programme.
§ SR H. CAMPBELL-BANNERMANHis Majesty's Government recognise the importance of the statement made by Prince Bulow. It is also apparent from the tone of that statement that the German Government desire, while maintaining their own view, to avoid causing difficulties or embarrassment to other Powers who are interested in this question. His Majesty's Government for their part desire to deal with the question in the same spirit and to avoid any action which is. likely to be embarrassing to any other Power. They also recognise that any question of expenditure on armaments cannot be dealt with except by agreement and consent, but they are not prepared at the present moment to make any further statement as to their own programme of shipbuilding and the expenditure connected with it.