Statement of the First Lord of the Admiralty

NAVY ESTIMATES, 1924-1925. Statement of the First Lord of the Admiralty Explanatory of the Navy Estimates, 1924-1925. Presented to Parliament of His Majesty. by Command L O N D O N : PUBLISHED BY HIS MAJESTYS STATIONERY OFFICE.. To be purchased through any Bookseller or directly from H.M. STATIONERY OFPICE at tho followins addresses: IMPERIAL HOUSE, KINQSWAY, LONDON, W.G.2, and 28, AUINQDON STREET, LONDON S.W.1: YORK STREET, MAXOHESTER 1. ST. ANDRKW'S CRESCENT, CARDIFF- or 120, GEORGE STREET, EDINBURGH 1924. Crad; 2071. Price 3d. Net

STATEMENT TO ACCOMPANY THE NAVY ESTIMATES, 1924-25. Inclusive, of the provision of rather less than 1,800,000 for the commencement of. five Cruisers and two Destroyers, as already announced to Parliament, the net total of Navy Estimates for 1924-25 is 55,800,000. There is, therefore, a reduction of 2,200,000 as compared with the Estimates for the present year. i Inf regard to this reduction, it must be remembered that in any given year the great bulls of Naval Estimates consists of expenditure to which we are already committed by contractual or quasi-contractual obligations, e.g., contracts for shipbuilding or engineering works; forward contracts for the supply or manufacture of guns, stores, fuel, &c.; contracts of service with Naval Officers and men, Reservists, and civilian employees of various lands; obligations to pay retired pay and pensions, and so on. It is calculated that the amount of expenditure that does not come under these and similar headings, and on which definite reductions are possible that will take immediate effect, does not amount to more than about 10 per cent, of the whole. Translated into pre-war figures by making allowance for differences in prices and wages, the. total of 55,800,000 would represent approximately 34,500,000, of which 29,848,200 would be the provision made for Effective services. Hence it will be seen that the scale of expenditure on the Navy has been brought much below the 1914-15 standard in fact, to what it was about the year 1903-4, prior to the concentration of the Eleet in Home Waters and its expansion to meet the growing German menace. Estimates, in their main features, are dependent upon Policy and the Estimates now presented have in view simply the maintenance, with the strictest regard to economy, of the Navy at the accepted standard of strength and in a state of efficiency. They do not provide for any increase of that standard, nor for any new developments that could lead to the impression in any quarter that an increase of Naval strength is our ultimate objective. Apart from the completion or the progressing of vessels actually in hand, the only new construction provided for is the commencement of the five Cruisers and the two Destroyers already referred to. The Cruisers are part replacement of the County Class Cruisers which have, already been scrapped and, but for reasons of economy, the Admiralty would have asked Parliamentary sanction to commence construction as scrapping occurred. The time, however, has now arrived when this replacement construction can no longer be delayed, in view of the large numbers of Light Cruisers that will during the next few years reach an age at which they can no longer be relied upon as x21908

efficient units, and it is therefore strictly consistent with the policy above described. In preparing the Estimates, special regard has been had to the fact that in three successive years, a substantial surplus has been realised on the provision made for Naval requirements. These under-spendings have been due chiefly to the progress on Contract work of various descriptions proving slower than was anticipated in the original Estimates. A number of different reasons may be given to account for this, the principal (in order of importance) being Labour disputes affecting the progress of work; delays in completing difficult and novel designs before Contractors can proceed with supply; delays in getting possession of sites for works. For this coming year, His Majesty's Government have decided to discount these various causes of possible delay in advance, and the provision under the contract subheads lias been correspondingly reduced. If it should happen that the work, in general, proceeds in 1924-25 without the interruptions that have caused under-spending previously, the position will be dealt with when it arises. But His Majesty's Government consider that it is reasonable to frame these Estimates on the assumption that there will not in this respect be any extensive departure from the experience of the last few years. ADMIRALTY, CHELMSFORD. 10ft March, 1924. MOTES ON MATTERS OF GENERAL INTEREST AFFECTING THE NAVY. Ratification of the Washington Treaty. The ratification of the Washington Treaty by all the Signatory Powers has now taken place. In the interests of economy, the Admiralty acted in anticipation of such ratification in proceeding with the sale for breaking up of the Capital Ships which under the Treaty provisions are required to be completely scrapped by 17th February, 1925. All such Capital Ships are now in the hands of the shipbreakers, except one, which, having been rendered incapable of further warlike service, will be used for certain experiments before being finally scrapped. Dominion Co-operation. The Naval Defence of the Empire must depend ultimately on the active support of public opinion throughout the Empire, and the only system of Naval Defence which can meet with general approval is one in which each Dominion possesses Naval Forces of its own. The Admiralty heartily endorse this principle and will do all in their power to assist in the development of seagoing Dominion Navies, * 21968 2376 3/24 A 2

4t A large proportion of the personnel (both Officers and Men) of the Dominion Navies is at present lent from the Boyal Navy. It is the policy of the Admiralty to regard service in these Navies as. in every way the same as service in the Eoyal Navy from the point of view of promotion and advancement. The Imperial Conference in 1923 afforded a means of fully discussing with, the Dominion Premiers the various aspects of Empire Naval Defence. The resolutions of the Conference on this subject (contained in Command Paper 1987) were as follows : " (1) The Conference affirms that it is necessary to provide for the adequate defence of the territories and trade of the several countries comprising the British Empire. " (2). In this connection, the Conference expressly recognises that it is for the Parliaments of the several parts of the Empire, upon the recommendations of their respective Governments, to decide the nature and extent of any action which would be taken by them." Subject to these resolutions, the Conference suggested the following guiding principles, which are of so great importance that those affecting Naval Defence are quoted at length : (a) The primary responsibility of each portion of the Empire represented at the Conference for its own local defence. (b) Adequate provision for safeguarding the maritime communications of the several parts of the Empire, and the routes and waterways along and through which then armed forces and trade pass. (c) The provision of Naval Bases and facilities for repair and fuel so as to ensure the mobility of the Fleets. (d) The desirability of the maintenance of a minimum standard of naval strength, namely, equality with the naval strength of any foreign power, in accordance with the provisions of the Washington Treaty on Limitation of Armament as approved by Great Britain, all the selfgoverning Dominions and India. During the discussions which took place, the Admiralty pointed out that the application of these principles involved an. unduly heavy burden for the people of Great Britain to bear unaided, and that the necessary naval strength can only bo maintained by the co-operation of all the peoples of the Empire through their several Parliaments and Governments. Opportunity was taken of the return of the Atlantic Fleet from the Autumn Exercises to arrange an. assembly of the Fleet at Spithead, to which the various Delegations from the Dominions were invited by His Majesty's Government. The programme included an inspection, of the Fleet at anchor, and certain exercises and evolutions at sea.

The Dominion of New Zealand having expressed, willingness to maintain a modern oil-burning Light Cruiser in. place of H.M.S. " Chatham," the latter has been replaced by H.M.S. " Dunedin " on the New Zealand Station. With a view to the stimulation of trade, the fostering of Dominion interest in Naval Defence and to give His Majesty's Ships more experience of long-distance cruises and of waters.practically unvisited by His Majesty's Navy for nearly 20 years, a Special Service Squadron, consisting of the Battle Cruisers " Hood " and " Repulse " and five Light Cruisers, was formed to undertake a cruise round the world, and to visit the Dominions and other parts of the British Empire. The Squadron sailed in November last and the visits paid have so far proved very successful. By arrangement with the Commonwealth Government, H.M.A.S. "Adelaide," one of the Light Cruisers of the Royal Australian Navy will join company with the Special Service Squadron in Australian Waters and will accompany the Squadron during the remainder of the Cruise. On the arrival of the Squadron in England, H.M.A.S. " Adelaide" will remain in Home Waters for a month before returning to Australia. General Naval Activities. The conclusion of a satisfactory agreement with the Soviet Government made it possible in June, 1923, to withdraw the Sloop Patrol which was instituted for the protection of British fishing vessels during the fishing season off the Murmansk Coast. The conclusion of the Treaty of Peace with Turkey has made it possible for the Naval Base established at Constantinople to be closed. At the time of the disastrous Earthquake in Japan, the Commander-in-Chief with a number of ships of the China Squadron proceeded to Japan with food and. medical supplies and rendered assistance. Owing to the disturbed conditions in China, heavy, demands have been made on the gunboats maintained in the Yangtse River for the protection of British interests. In view of the revolutionary outbreak in Mexico, it has been necessary to send one of His Majesty's Ships to Mexican Waters to protect British subjects. Last month a Light Cruiser was detailed to convey the Prime Minister of the Commonwealth of Australia from Constantinople to Gallipoli on a visit of inspection to the War Graves in the Peninsula.. Distribution oi the Fleet. For many years prior to the late war it had been necessary to retain most of the more modern vessels in Home Waters, in spite of the f act that we were thereby depriving them of the valuable experience'given by visiting more. : distant waters. The general strategic situation now permits us to return to more normal conditions. ; - 7

In the Mediterranean two Destroyer Flotillas have been replaced by more modern vessels, and His Majesty's Fleet in these waters will be gradually brought up to the following, the Atlantic Fleet being correspondingly reduced : 8 Battleships. 2 Light Cruiser Squadrons. 4 Destroyer Flotillas. 2 Depot Ships. 2 Aircraft Carriers. 1 Fleet Repair Ship. 1 Submarine Flotilla. 1 Submarine Depot Ship. As the East Indies Squadron can be more satisfactorily and economically maintained from Trincomali than from Bombay, the Headquarters of the Squadron has been transferred to Trincomali. Personnel of the Fleet. The numbers required for the existing Fleet are 99,100. The manning of the ships already under construction or reconstruction (viz., "Nelson," "Rodney," "Courageous," " Glorious," "Emerald," " Adventure," and 2 Patrol Submarines)' would, under ordinary circumstances, necessitate the provision of 3,200 additional Officers and Men. In view, however, of the urgent need for economy, only 1J400 of this 3,200 (being ratings who require a period of training) will be provided for by new entries. The remaining 1,800 will be found by reducing the existing peace complements of the Fleet. As regards the 5 Cruisers and 2 Torpedo Boat Destroyers, for the commencement of which provision is made in the Estimates, the effect on Fleet numbers must depend upon the decisions. come to on the Replacement Programme as a whole, which is to be the subject of investigation by His Majesty's Government. In the meantime the numbers in present Vote A. do not include any additions in respect of these vessels. The 1,140 Officers and Men retained in Vote A. for a possible Naval Air Arm, mentioned in the First Lord's Statement last year, are being absorbed in the ordinary Fleet numbers for 1924-25. The Corps of Royal Marines, which stood at 18,400 before the War, has been reduced to 9,940, including the Royal Naval School of Music. This rendered it essential to reduce the overhead charges for maintenance. Various schemes were considered by the Board, and it was eventually decided, with the approval of His Majesty the King, to effect the necessary economies by amalgamating the Royal Marine Artillery and the Royal Marine Light Infantry under the title of Royal Marines. As a result of this step, it has been possible to close the Portsmouth Division, R.M.L.I., at Forton.

Officers'Lists have been unified on principles calculated to produce smooth working and to inflict as little hardship as possible on individual Officers, and surplus Officers have been allowed to retire on special terms. Non-Commissioned Officers and Men required to transfer to the Chatham and Plymouth Divisions were obtained by calling' for volunteers, of whom a considerable number came forward, the residue required to make up the revised establishments being provided proportionately from Royal Marine Artillery and Royal Marine Light Infantry. In order to reduce the hardship which would be inflicted on married men, when effecting compulsory transfers, unmarried men. were selected as far as possible, and in all transfers of Officers and Men arrangements were made for removal of families and effects at the public expense. Further accommodation in Training Establishments has. been necessitated by the resumption of normal entries of boys,, which have been much reduced during the period of reduction of Fleet numbers since the War. His Majesty's Ships " Colossus " and " King George V." have accordingly been temporarily attached to " Impregnable " to provide accommodation for additional numbers of boys, but such arrangements are costly, and it is intended, in the interests of. economy, to provide permanent accommodation on shore in the Barracks vacated by the Royal Marines at Forton as soon as they can be suitably adapted.- Measures taken during the past winter to place orders at the expense of Navy Estimates in Relief of Unemployment. At the request of the late Government, the Admiralty placed orders with Contractors in what are known as the " black spot " areas of unemployment for purchase of materials and stores of all descriptions that were not provided for in the original Estimates, of a value of nearly 500,000, which were expected to give employment to some 7,000 men for 17 weeks. It was later decided to place orders for various items of Machinery of a value of over 400,000 for the same purpose, but it has not been possible to place these contracts in time for much of the money to be spent before the end of March. To meet the particular needs of Barrow-ih-Furness, which is one of the most distressed of all the districts, orders were given to re-condition a large number of Gun Mountings which are held in reserve, at a cost of over 100,000; the number of men engaged being about 600. It was further decided to enter 2,500 additional men in the Dockyards and 1,000 men at the Naval Ordnance Depots on arrears of work which had been deferred for reasons of economy. The cost up to the end of March is estimated to be about 270,000. The whole of this special expenditure can be met within the total of Navy Estimates, 1923-24, the Boilermakers' dispute having resulted in normal expenditure to more than the same amount being postponed. : -.

Remarks on the Votes for 1924r-25. Vote 1 (Pay of the Fleet). [ Vote 2 (Victualling and Clothing). Vote 3 (Medical). Vote 4 (Civilians employed on Fleet Services). Reduction on the 4 Votes -. -. 362,300 The much larger decrease in 1923-24 Estimates on this group of Votes, which are those most closely connected with Fleet numbers, was in consequence of the heavy reduction in the numbers of Naval personnel, and naturally it is not repeated in the Estimates for 1924-25. Allowance has been made for a reduction in Officers' pay, "which is expected to result from the revision of the rates during 1924 on the basis of the cost of living, as provided for by the Jerram Committee's recommendations when the rates wore raised in 1919. The number of Medical Establishments has been reduced by two, viz. : Yokohama Hospital, destroyed by the Earthquake, and Royal Marine Infirmary, Forton, closed owing to the transfer of the R.M. Division. A further reduction in the number and cost of Civilians employed on Fleet Services has been effected. Vote 5 (Education). Reduction...... 11,200 It is satisfactory to note that, in a large measure as the result of the improved rates of pay for Schoolmasters, the shortage of numbers in this Branch, as in the Instructor Branch, has nearly been made good. It thus becomes possible to make, much fuller progress with the schemes for the continuous education of young Officers and Men of the Fleet. An important change affecting the training of Cadets and involving a considerable saving, though chiefly under other Votes, has been made by the decision to abolish the Cadet Training Ship. In future, Cadets will proceed direct from Dartmouth to Capital Ships, where their further instruction Mill be carried out by Instructor Officers and other Specialist. Officers. Vocational Training. As was forecasted in last year's Statement, arrangements have been made to institute at the Home Ports a system of Vocational Training in trades suitable to the various Branches of the Naval Service, the cost being partly defrayed by fees paid by the men under instruction and partly from public funds. Arrangements are also made for the attendance of men at classes at the Municipal Technical Schools when the subjects taught appear to be suitable to the needs of the men, one half of the fees for such classes being defrayed from public funds. Preference is. given to men who are within 12 months of completing time for pension. Facilities are also extended to

men invalided from the Service, provided they can complete the course within a year of discharge. Commanders-in-Ohief on Foreign Stations are authorised to put similar schemes into operation so - far as local conditions permit. Vote 6 (Scientific Services). Increase - - - - - - 4,200 Reference was made in last year's Statement to the proposed pooling of scientific staffs employed by the Admiralty. The scientific pool has now been formed and the work of these scientists, in co-operation with the Technical Officers in Service Establishments, should enable the most urgent of the continually increasing number of scientific problems to be investigated most economically. These staffs are intended to meet the requirements in general research for the Navy, the specific items of research varying in accordance with policy. The actual numbers in the scientific pool are based upon the minimum rate of progress considered to be essential. The need for effective methods - of countering new offensive weapons is particularly borne in mind, and the results obtained are encouraging. Vote 7 (Reserves). Reduction - - - - 81,300 The reduction is mainly due to the facb that experience has shown that neither the numbers enrolling in the Reserves nor the numbers coming up for voluntary training have realised expectations. These are probably direct and temporary results of the war. It has further been decided on grounds of economy to exempt from drill during 1924 half the number of Royal Fleet Reservists, Class B, who would normally be liable to perform training. As far as possible, this will be effected by waiving the drill of (a) the older Reservists in preference to the younger; (6) men who wish for exemption in preference to men who wish to drill. As announced last year, arrangements have been made for the formation of a new Division of the R.N.V.R. in Ulster, starting from the commencement of 1924-25. It is to be regretted that considerations of economy make it necessary to discontinue the capitation grant of 6s. per annum hitherto payable to Central Associations for each efficient Cadet in recognised Naval Units of Sea Cadet Corps under their administration. Since December, 1922, only Units alreadyrecognised before that date have been receiving the grant..

Admiralty assistance to Sea Cadet Corps, from 1st April 1924, will be confined to the loan of boats, stores, &c, subject to insurance by the Unit concerned where the value of articles lent justifies that course. Vote 8, Section I. (Dockyard Personnel). Increase 351,000 The labour conditions in the Dockyards during the ourrent financial year have been generally stable, and no discharges on reduction have occurred. Under the Scheme for the relief of unemployment a number of additional men were entered in the Yards on a temporary basis early in the winter and have been engaged' on useful and necessary work. It was originally intended to dispense with their services by the end of the financial year, but if three new Cruisers are laid down in the Dockyards, as proposed, this will obviate the necessity for a general discharge. As regards the progress of the work of the Yards, the Aircraft Carriers " Hermes" and " Eagle" are being completed and passed into commission during the current year. The Submarines K. 26 and L. 69 have also been completed and commissioned, while Submarine X. 1 is expected to be completed very early in 1924-25, if her trials prove satisfactory. Substantial progress has been made during the ourrent year on ships under re-oonstruction. The Programme for 1924-25 includes the completion of the following ships laid down before the end of the war : the Cruisers " Effingham," " Erobisher " and " Emerald," the Flotilla Leaders " Keppel " and "Broke," three Destroyers and five Submarines. The construction of the Cruiser " Enterprise," the Minelayer " Adventure " and Submarine " 0. 1 " will be further advanced. Vote 8, Section II. (Store Subheads). Eeduction - - - 102,300 The reduction in spite of provision for the programme of new construction would have been more than doubled were it. not for the falling off in the credits from the sale of ships. Adininistrative reorganisation in the supply of sea stores to the Fleet, which has been extended during the current year, is largely responsible for this decrease in expenditure. Vote S/IIIK. (Fleet Fuelling). Eeduction - - - - - 48S,000 In view of the continued pressing need for economy, the policy referred to in last year's Statement of restriction of the steaming and of the fuehing facilities of the Fleet and postponement of the building up of oil fuel reserves will be again followed in 1924-25,.

Vote 8, Section III. (Contract Shipbuilding). Increase - - - - - 788,S50 The increase is due to provision being made for the contract work in connection with the five Cruisers and two Destroyers proposed to be laid down in 1924-25. Although three of the Cruisers are intended to be built in the Royal Dockyards, their armour and gun-mountings will be obtained by contract and will be a charge against this Vote. Progress on the Battleships "Nelson" and "Rodney" was greatly retarded in 1923-24 owing to the Boilermakers' dispute, and, in accordance with the policy referred to at the conclusion of the First Lord's statement, the provision made for progress on these ships in 1924-25 has been estimated on a very conservative basis. Vote 9 (Naval Armaments). Reduction - - - - - 1,369,400 A large reduction has been made on this Vote, the experience of recent years having shown that there is difficulty in maintaining the standard of progress aimed at in the supply of Armament Stores and in Experimental Services. War Liabilities are now practically cleared off under this Vote. On the other hand, Surplus Stocks of High Explosives are no longer available to meet current requirements. Vote 10 (Works). Reduction -..- - - - 752,850 The Annuity under the Naval Works Acts accounts for 1,286,114 of the total Vote of 3,080,000. The sum of 648,600 is included for continuing the programme of Oil Fuel Storage accommodation at Home and Abroad. Provision is made for commencing the Pembroke installation. Other new works have been reduced to an essential minimum, the most important being at Devonport, where the widening of the entrance into the basin at Devonport and the provision of a berth for a floating dock, to enable bulged ships to be dealt with at that Dockyard, will be taken in hand. Provision is also made for the conversion of the Barracks at Forton, lately vacated by the Royal Marines, into a Training Establishment for boys for whom accommodation cannot be found in the Shotley Establishment; for the storage underground, in the interests of safety, of high explosives in the Plymouth District; and for commencing the restoration of important buildings in Portsmouth Dockyard destroyed by fire before the War. Vote 11 (Travelling Expenses and Miscellaneous). Reduction - - - - - 203,500. Considerable reductions have been made in the majority of the subheads of this Miscellaneous Vote, partly, due to the

clearance, either wholly or in part, of the various war-tune and other abnormal services. A marked reduction in the provision for travelling has been made, partly due to the use of His Majesty's Ships for relieving Naval crews abroad. Vote 12 (Admiralty Office). Reduction - - - - - 50,900 The total reduction of numbers borne on the Vote is 247. Completion of the greater part of the Prize and Medal distribution has enabled a considerable reduction to be made. Further reductions in the staff engaged on the Prize and Medal work still remaining will be made during the course of the financial year. Reductions have also been possible through the completion of other financial work arising as an aftermath of the War. A considerable reduction has also been effected in the number of temporary staff and of the messenger and cleaning staff. Votes 13, 14, 15 (Non-effective Votes). Increase - - - - - - 77,700 The natural tendency of the non-effective Votes to increase in consequence of the improved scales granted since the War, is to some extent offset in the case of Vote 13 by the expected reduction in July, 1924, of that portion of Officers' rates of pa]' which is related to the cost of living and, in the case of Vote 14, by the clearance of charges relating to the War period. The increase in Vote 15 is partly due to the effect of the new Worknieirs Compensation Act, passed in December last. Printed under tlic authority of His 1UJBSTY'S STATIONERY OFFICE By Byre and Spottiswoodo, T,td,, East Harding Street, E.C. 4, Printers to the King*s most Excellent Majesty.