476

A.—s

of that portion of the Empire not merely for its own needs, but affording a Naval base for all operations which may need to be conducted in those seas. That ought not to be under-valued. Every development of Naval force in Australia is a development of the Naval forces of the Empire. It will be capable of being utilised for defence and also in connection at any time with your squadron in our waters for offence also. Of course, even if the agreement be terminated, the visits of the squadron to our seas will not cease. They will be paid in ordinary course. I also understand that as at present the Navy will, for its own sake and in recognition of our common interests, obtain the largest portion of its supplies from Australia and New Zealand; that is to say, whatever supplies can be obtained on the spot; that we shall have the opportunity of seeing in our ports the ships of this powerful united fleet that will be composed of the three squadrons of Australia, India, and China. That is very necessary as maintaining a link of Empire of a very real character, which makes an extremely strong appeal to the patriotism of our people. The Navy is immensely popular. The British Army we do not see except in our own militia. The Imperial Navy represents the great guarantee of its existence as well as a guarantee of our liberties and constitutional privileges. The Navy is an extremely popular Service, and, realising that, we are sure the Admiralty will not fail to allow us the opportunity from time to time of seeing the splendidly manned and equipped vessels which have made the British flag paramount in all seas. I could not pass by a speech so extremely gratifying to Australian sentiments as your own without this notice. I do not for one moment pretend to have adequately dealt with it. Let me say, in conclusion, that, of course, we look upon any vessels for local defence not only as Imperial in the sense of protecting Australia, but because they will be capable of co-operating with any squadron, or any part of your squadron, which you may think fit to send into our waters to meet any direct attack in proximity to our coasts. In that way, we ought to be able, with the type of vessel we shall have, when associated with your larger ships, to render extremely effective assistance. And so far from the termination of this agreement in any way concluding our close and intimate relationship with the Imperial Navy in Naval Defence, I hope it will be the means of enabling us to extend Naval development, in very efficient forms, in our own seas, making it of such a character as to be of material assistance if ever a foe to the flag should find his way into our waters. Sir JOSEPH WARD : Lord Elgin and gentlemen, 1 would like to try and make the position, as far as New Zealand is concerned, quite clear m connection with this matter. The remarks I made on a former occasionwhich Ido not propose to refer to at any length again I adhere to in every respect That is, in brief, that in a developing country of the size of New Zealand about the size of Great Britain and Ireland, and a comparatively young country, we cannot undertake the possible future obligations entailed 'in the making for the provision of anything*in the shape of a local navy. We believe it is of great consequence to the future development of New Zealand with its enormous potentialities for the settlement of people, that the necessity of maintaining that development must, in view of the financial obligations'involved in providing a local navy, take precedence with the Government of that country in the interests of the people of that country. J adhere absolutely to what I stated before in that respect. New Zealand has made no request of any kind for an alteration of the existing agreement, and I readily acquiesce'in the suggestion made by the lirst Lord of the Admiralty that New Zealand in relation to the Mother Country will of

Thirteenth Day. 8 May 1907.

Naval Defence. (Mr. Deakin.)