The Dominion of Canada has always maintained a certain number of small vessels for Customs duties or fishery protection, also for service on the Great Lakes. In 1909 the question of a Canadian Navy became insistent, and two old British cruisers--the _Niobe_ of the _Diadem_ class and the _Rainbow_ of the _Apollo_ class--were purchased as training ships for the Canadian Navy. A project was also brought forward for the creation of Canadian dockyards and building therein four second-class cruisers of the _Dartmouth_ class and six destroyers, though up to the time of writing none of these ships have materialised, and the Canadian Navy is still very much a project in the air. Newfoundland has a naval reserve, trained over many years in the drill-ship, which is ex H.M.S. _Calypso_. The whole subject of Colonial Navies is somewhat involved, owing to the question as to how far they should be under the orders of and part of the British Navy, liable to be used when and where required for Imperial needs, and how far they should be regarded as merely for local defence. It has been argued from one point of view that Colonial Navies acting on their own responsibility might create undesirable Imperial complications--as for instance, Australia with Japan, or Canada with the United States. On the other hand it is argued that it would not be possible to arouse Colonial enthusiasm for a Colonial fleet which was not always on the spot, despite any strategical grounds that might exist for its being elsewhere. New Zealand, in May, 1912, negatived this by presenting her battle-cruiser to the Imperial Navy for use where most needed, but generally speaking Colonials think first of local defence. These two divergent points of view, which are certainly extremely delicate, may be said to be still _subjudice_, but in the year 1911 the following agreement, which is of the nature of a very judicious compromise, was drawn up:-- 1. The naval services and forces of the Dominions of Canada and Australia will be exclusively under the control of their respective Governments. 2. The training and discipline of the naval forces of the Dominions will be generally uniform with the training and discipline of the fleet of the United Kingdom, and by arrangement, officers and men of the said forces will be interchangeable with those under the control of the British Admiralty. 3. The ships of each Dominion naval force will hoist at the stern the white ensign as the symbol of the authority of the Crown, and at the jack-staff the distinctive flag of the Dominion. 4. The Canadian and Australian Governments will have their own naval stations as agreed upon and from time to time. The limits of the stations are described in Schedule A (Canada) and Schedule B (Australia). 5. In the event of the Canadian or Australian Government desiring to send ships to a part of the British Empire outside of their own respective stations, they will notify the British Admiralty.