In the last annual report on the United States navy (December 1911), Secretary Meyer stated that a total of forty battleships, with a proportional number of other fighting and auxiliary vessels, was the least that would place the United States on a safe basis in its relations with the other world Powers, and "while at least two other Powers have more ambitious building plans, it is believed that if we maintain an efficient Fleet of the size mentioned, we shall be secure from attack, and our country will be free to work out its destiny in peace and without hindrance. The history of all times, including the present, shows the futility and danger of trusting to good-will and fair dealing, or even to the most solemnly binding treaties between nations, for the protection of a nation's sovereign rights and interests, and without doubt the time is remote when a comparatively unarmed and helpless nation may be reasonably safe from attack by ambitious well-armed Powers, especially in a commercial age such as the present." Battleships 36 and 37, at the time in course of construction, were, he claimed, a distinct advance on any vessels in existence. These vessels would be oil-burners, and would carry no coal. They were to be of about the same size as the _Delaware_, but their machinery would weigh 3000 tons less, or a saving of 30 per cent., and the fire-room force would be reduced by 50 per cent. Concluding his report, Mr. Meyer said: "The Panama Canal is destined to become the most important strategical point in the Western Hemisphere, and makes a Caribbean base absolutely necessary. The best base is Guantanamo Bay, Cuba, which Cuba has ceded to the United States for naval purposes. This base will enable the United States to control the Caribbean with all its lines of approach to the canal, and, with a torpedo base at Key West, will render the Gulf of Mexico immune from attack." A new type of war machine, which is a combination of a submarine and a torpedo boat, is now being prepared for use in the United States navy. She is known as the "sub-surface torpedo boat." There is a submarine hull with machinery and torpedo armaments, and a surface hull--said to be unsinkable--divided into compartments. The whole vessel weighs six tons, can be carried on the deck of a battleship, travels eighteen knots an hour for a radius of two hundred miles, and needs a crew of two men. She carries a thousand pounds of gun-cotton. The sub-surface boat may be used as an ordinary torpedo boat, or she may be bodily directed at a hostile ship after her crew of two have left. It is estimated that the sub-surface boat will cost about £5000, all told, and it seems possible that it will be a serious weapon of naval warfare.