I learned from Sir Eric Geddes that he felt capable of undertaking the work on the understanding that he was assured of my personal support; he said that experience in his railway work in France had shown the difficulty of taking over duties hitherto performed by officers, and stated that it could not have been carried through without the strong support of the Commander-in-Chief; for this reason he considered he must be assured of my support at the Admiralty. In view of the importance attached to combining under one administration the work of both naval and mercantile shipbuilding for the reasons already stated, and influenced in some degree by the high opinion held of Sir Eric Geddes by the Prime Minister, I came to the conclusion that his appointment would be of benefit to Admiralty work, and therefore gave him the assurance and said that I would do my best to smooth over any difficulties with the existing Admiralty officials, whether naval or technical. In these circumstances Sir Eric Geddes was offered the post of Admiralty Controller by Sir Edward Carson, then First Lord, and accepted it. It was arranged that a naval officer should continue to hold the post of Third Sea Lord and that he should be jointly responsible, so far as the Navy was concerned, for all _design_ work on its technical side, whether for ships, ordnance material, mines, torpedoes, etc., etc., whilst the Controller became entirely responsible for _production_. It was obvious that goodwill and tact would be required to start this new organization, which was decidedly complicated, and that the post of Third Sea Lord would be difficult to fill. At the request of Sir Eric Geddes Rear-Admiral Lionel Halsey, C.B., who at that time was Fourth Sea Lord, was asked if he would become Third Sea Lord in the new organization. He consented and was appointed. When the detailed organization, drawn up to meet the views of Sir E. Geddes, was examined by the naval officers responsible for armament work, strong objections were raised to that part of the organization which affected their responsibility for the control and approval of designs and of inspection.