A.—4,

14

15. If will be seen by reference to Volume 111 that the total naval forces required for the Far East are on a very considerable scale, but no reasonable measure of defence [can be given by a smaller force. The Home and Far Eastern theatres are so far apart that in these days of rapid movement and quick decisions correct strategy demands adequate strength in both quarters. 16. The financial provision necessary for the construction and maintenance of the Far Eastern Fleet and the local forces is the next question. There are two considerations which seem to govern the proportion of the cost which might fairly be borne by the constituent parts of the Empire, bearing in mind the fact that the Mother Country is probably no longer able to shoulder to the same degree as in the past the financial burden that will be imposed. These are—-t (i.) The population of the Mother Country and of each Dominion, (ii.) The value of their respective oversea trade. Tables I and II which follow show these figures, and the percentage value for each member of the Empire, based on (i) population, and (ii) oversea trade.

TABLE I. PERCENTAGE CONTRIBUTION TO NAVAL ESTIMATES BASED ON POPULATION.

India (omitted), about 319,000,000, mostly native. The figures in column 2 are taken from page 1 of " Statistical Abstract for the British Empire in each Year from 1899 to 1913."

TABLE II. PERCENTAGE CONTRIBUTION TO NAVAL ESTIMATES BASED ON VALUE OF OVERSEA TRADE.

The figures given in column 2 are taken from pages 55 and 61 of " Statistical Abstract for the Several British Self-governing Colonies, Possessions, and Protectorates, in each Year from 1899 to 1913 " ; except those for the United Kingdom, which are taken from pages 36, 38, and 100 of ' Statistical Abstract for the British Empire in each Year from 1899 to 1913."

Country or Dominion. Population in 1917. Percentage of British Empire Population (omitting India). United Kingdom Commonwealth of Australia Dominion of New Zealand Dominion of Canada Union of South Africa (white population) 46,089,000* 4,898,000 1,159,000 8,361,000 1,500,000 74-33 7-90 1-87 13-48 2-42 Total 62,007,000 62,007,000 100-00 * 1914. Latest figures available.

Country or Dominion. Value of Oversea Trade. Exports and Imports for the Year 1913. Percentage of Empire's Total Oversea Trade Exports and Imports for Year 1913 (omitting India). Jnited Kingdom Commonwealth of Australia Dominion of New Zealand Dominion of Canada Jnion of South Africa .. £ 1,540,000,000 158,000,000 45,000,000 232,000,000 109,000,000 73-90 7-58 2-16 11-13 5-23 Total £2,084,000,000 100-00 india (omitted) £316,000,000