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 grounds of commercial advantage or financial economy to place any hampering restriction or impediment upon these most difficult and momentous operations.

Careful and prudent administration does not stop at the outbreak of war. Everything in our power will be done to enforce it and avoid extravagance. We shall, therefore, welcome the advice of business men on points where they can help us. Gradually, as we get more and more control of the situation, higher economy in some respects may be possible, but military and naval requirements must be paramount, rough and ready although their demands often are, and they must be served fully at the cost of all other considerations. I am afraid that I cannot hold out any hope of any immediate reduction in the tonnage required by the Admiralty.

More than a month ago, before these matters were at all ventilated in public, noticing the rise in freights, I directed the Fourth Sea Lord to hold an inquiry into the whole use of merchant ships taken by the Admiralty, including, particularly, transports, colliers, and supply ships, but after the most stringent scrutiny and consultation with the admirals afloat, it was not found possible to make any appreciable reduction; and, indeed, since January i the requirements of the Admiralty have actually increased. That is, indeed, only to be expected, as the size of the Fleet and the general scale of the military operations both grow continually.

I am going into this subject a little at length, because it is, I understand, to be the subject of a motion later on in the evening, and I would ask for myself the indulgence of the House to attend to other business of a pressing nature, and leave the conduct of that debate in the hands of my right hon. friend the Financial Secretary. To sum up, then, the retention of a large number of full colliers and ammunition ships in attendance on the Fleet is a naval necessity. The retention of a large number of troop transports is a military necessity. In either case ships may be, and have frequently been, required at an hour's notice for urgent service which might be vital to the success of our operations. Coal must be ready afloat for the Fleet, and troopships must be ready for the men, and no amount of business management, however excellent it may be, will get over that fact.

It seems to me, also, from reading the debate which took place the other night, that the impression existed in the House that the requisitioning of vessels at the outbreak of War was