A.—s

1913. NEW ZEALAND.

NAVAL DEFENCE: CORRESPONDENCE BETWEEN THE FIRST LORD OF THE ADMIRALTY AND THE PRIME MINISTER OF THE DOMINION OF CANADA.

Presented to both Houses of the General Assembly by Command of His Excellency.

I. From Eight Hon. E. L. Boeden, K.C., M.P., to Mr. Churchill. My dbae Mr. Chobchill, — Ottawa, Ontario, 18th December, 1912. It has been suggested to me that the construction of large warships of the most modern type has been attended with great difficulties in its earlier stages, and that the cost has been excessive. If I am not trespassing too much on your good nature, I would be glad to receive any information along that line, so that it will be available if necessary. Yours faithfully, E. L. Bordkn. The Bight Hon. Winston S. Churchill, M.P., First Lord of Admiralty, London, England.

11. From Eight Hon. E. L. Boedbn, K.C., M.P., to Mr. Churchill. My dbak Mr. Churchill, — Ottawa, Ontario, 18th December, 1912. One of the officials in the Canadian Naval Service has made up the enclosed estimate as to the first cost and the annual cost of maintenance of two fleet units. Although I possess no special or technical knowledge of such matters, I am inclined to think that the estimate is too low. Perhaps you would be good enough to submit it to the technical officers of your Department, or to persons experienced in naval construction, and let me have an estimate which might be used in Parliament if necessary. Yours faithfully, E. L. BOBDBN. The Bight Hon. Winston S. Churchill, M.P., First Lord of Admiralty, London, England.

Enclosure.

First Cost. Annual Cos: (exclusive of I ; of Upkeep lepreoiation). British. Canadian.* British. Canadian.f battle-cruiser cruisers of Bristol class destroyers submarines ... Dollxrs. 11,750,000 3,393,000 3,600,000 1,350,000 Dollars. 15,650,000 4,524,000 4,800,000 1,800,000 Dollars. 700,000 700,000 486,000 120,000 Dollars. 980,000 980,000 680,000 168,000 Cost of one fleet unit 20,093,000 26,774,000 2,006,000 2,808,000 Cost of two fleet units 40,186,000 53,548,000 4,012,000 5,616,000 * Based on lowest tender reoeived by previous Government for construction of cruisers and destroyi f 40 per cent, in excess of British cost. irs,