Turning naturally from this to the subject of imperial defence, Mr. Chamberlain gave the substance of a paper which would be submitted to the Conference, exhibiting comparatively the naval and military expenditure of the United Kingdom and of the different self-governing colonies. The cost of the armaments of the United Kingdom had increased enormously since 1897, and "that increase," he said, "is not entirely due to our initiative, but it is forced upon us by the action of other Powers who have made great advances, especially in connection with the Navy, which we have found it to be our duty and necessity to equal. But the net result is extraordinary. At the present moment the estimates for the present year for naval and military expenditure in the United Kingdom—not including the extraordinary war expenses, but the normal estimates—involve an expenditure per head of the population of the United Kingdom of 29s. 3d. per annum. In Canada the same items involve an expenditure of only 2s. per head of the population, about one-fifteenth of that incurred by the United Kingdom. In New South Wales—I have not the figures for the Commonwealth as a whole, but I am giving those as illustrations—and I find that in New South Wales the expenditure is 3s. 5d.; in Victoria, 3s. 3d.; in New Zealand, 3s. 4d.; and in the Cape and Natal, I think it is between 2s. and 3s. Now, no one, I think, will pretend that that is a fair distribution of the burdens of Empire. No one will believe that the United Kingdom can, for all time, make this inordinate sacrifice. … I think, therefore, you will agree with me that it is not unreasonable for us to call your serious attention to a state of things which cannot be permanent. We hope that we are not likely to make upon you any demand that would seem to you to be excessive. We know perfectly well your difficulties, as you probably are acquainted with ours."