"All these requirements might be met according to the views of the Dominion Governments, in so far as the form and manner of the provision made are concerned. But as regards shipbuilding, armaments, and warlike stores, etc., on the one hand, and training and discipline in peace and war, on the other, there should be one common standard. If the Fleet unit maintained by a Dominion is to be treated as an integral part of the Imperial forces, with a wide range of interchangeability among its component parts with those forces, its general efficiency should be the same, and the facilities for refitting and replenishing His Majesty's ships, whether belonging to a Dominion Fleet or to the Fleet of the United Kingdom, should be the same. Further, as it is a _sine quâ non_ that successful action in time of war depends upon unity of command and direction, the general discipline must be the same throughout the whole Imperial service, and without this it would not be possible to arrange for that mutual co-operation and assistance which would be indispensable in the building up and establishing of a local naval force in close connection with the Royal Navy. It has been recognised by the Colonial Governments that, in time of war, the local naval forces should come under the general directions of the Admiralty." The Commonwealth of Australia representatives accepted in full the proposals as set forth in the Admiralty memorandum. It was agreed that the Australian Fleet unit thus constituted should form part of the Eastern Fleet of the Empire, to be composed of similar units of the Royal Navy, to be known as the China and the East Indies units respectively, and the Australian unit. The initial cost was estimated to be approximately: 1 armoured cruiser (new _Indomitable_ class). £2,000,000 3 unarmoured cruisers (_Bristols_) at £350,000. 1,050,000 6 destroyers (_River_ class) at £80,000 480,000 3 submarines (_C_ class) at £55,000 165,000 ---------- Total £3,695,000 The annual expenditure in connection with the maintenance of the Fleet unit, pay of personnel, and interest on first cost and sinking fund, was estimated to be about £600,000, to which amount a further additional sum would have to be added in view of the higher rates of pay in Australia and the cost of training and subsidiary establishments, making an estimated total of £750,000 a year. The Imperial Government, until such time as the Commonwealth could take over the whole cost, offered to assist the Commonwealth Government by an annual contribution of £250,000 towards the maintenance of the complete Fleet unit; but the offer was refused, and the Australian taxpayer took on the whole burden at once.