§ Naval defence was discussed at meetings of the Conference held at the Foreign Office on the 3rd, 5th, and 6th August. The Admiralty Memorandum, which had been circulated to the Dominion representatives, formed the basis of the preliminary conferences.
§ The alternative methods which might be adopted by Dominion Governments in co-operating in Imperial Naval Defence were discussed. New Zealand preferred to adhere to her present policy of contribution; Canada and Australia preferred to lay the foundation of fleets of their own. It was recognised that in building up a fleet a number of conditions should be conformed to. The fleet must be of a certain size, in order to offer a permanent career to the officers and men engaged in the service; the personnel should be trained and disciplined under regulations similar to those established in the Royal Navy, in order to allow of both interchange and union between the British and the Dominion Services; and with the same object, the standard of vessels and armaments should be uniform.
§ A remodelling of the squadrons maintained in Far Eastern waters was considered on the basis of establishing a Pacific fleet, to consist of three units in the East Indies, Australia and China seas, each comprising, with some variations, a large armoured cruiser of the new "Indomitable" type, three second-class cruisers of the "Bristol" type, six destroyers of the River class, and three submarines of "C" class.
§ The generous offer, first of New Zealand, and then of the Commonwealth Government, to contribute to Imperial naval defence by the gift each of a battleship was accepted with the substitution of cruisers of the new "Indomitable" type for battleships—these two ships to be maintained, one on the China and one on the Australian station.
§ Separate meetings took place at the Admiralty with the representatives of Canada, Australia and New Zealand, and general statements were agreed to in each case for further consideration by their respective Governments.
§ As regards Australia, the suggested arrangement is that with some temporary assistance from Imperial funds, the Commonwealth Government should provide and maintain the Australian unit of the Pacific Fleet.
2313§ The contribution of the New Zealand Government would be applied towards the maintenance of the China unit, of which some of the smaller vessels would have New Zealand waters as their headquarters. The New Zealand armoured cruiser would be stationed in China waters.
§ As regards Canada, it was considered that her double seaboard rendered the provision of a fleet unit of the same kind unsuitable for the present. It was proposed, according to the amount of money that might be available, that Canada should make a start with cruisers of the "Bristol" class and destroyers of an improved River class—a part to be stationed on the Atlantic seaboard and a part on the Pacific.
§ In accordance with an arrangement already made, the Canadian Government would undertake the maintenance of the dockyards at Halifax and Esquimalt, and it was a part of the arrangement proposed with the Australian representatives that the Commonwealth Government should eventually undertake the maintenance of the dockyard at Sydney.
§ Papers containing all the material documents will be laid before Parliament in due course, and, it is hoped, before the conclusion of the Session.