It is not, I think, necessary for me to refer to the deeds of and the work done by the Japanese Navy in the course of the war with Russia; very much the same remarks that I have made in regard to the Army apply here. Nothing was lost sight of or omitted that could in the slightest degree tend to ensure or secure success. Everything seems to have been foreseen. Nothing was left to chance. The results were precisely what might have been expected, and what indeed were expected, by those who had an intimate knowledge of the manner in which the Japanese Navy was organised for war. I regard it especially in alliance with the English Fleet, as one of the greatest safeguards for the peace of the world. I trust the alliance between this country and Japan may be of a permanent nature. I may remark in respect of the Fleet, as I have of the Army, that Japan has no unworthy ambitions. Her desire is to conserve what she possesses and to render her Island Empire secure from invasion or molestation. Closely connected with the development of Japan's Navy is that of her Mercantile Marine. A few words in regard to it may therefore not be out of place here. The insular position and the mountainous condition of the country, as well as its extent of seaboard, early impressed on the makers of new Japan the necessity for creating not only a great mercantile fleet but also for developing the shipbuilding industry. Both these ambitions have been largely realised. At first their consummation was attended with many difficulties. The Japanese, as I have already remarked in this book, were many centuries ago enterprising sailors, but when the country was closed voyages of discovery or trade automatically came to an end. With the awakening of Japan a change immediately took place, and steps were taken to create and develop the Mercantile Marine. A Japanese gentleman, Mr. Iwasaki, in 1872 started a line of steamers, subsidised by the Government, the well-known Mitsu Bishi Company. Shortly afterwards another company was formed to compete against it. This line was also subsidised by the Government, but as the rivalry did not prove profitable to either the two lines were amalgamated in 1885 under the title of Nippon Yusen Kaisha. Since then a number of other shipping companies have been formed in Japan, and the Nippon Yusen Kaisha has largely extended its operations, opening up communication with Bombay, England, and the Continent, Melbourne, &c. In fact, the Japanese flag is now seen in many parts of the world, while the Japanese Mercantile Marine has advanced by leaps and bounds, and is still annually increasing. At the end of 1904 there were about 240 steamers flying the Japanese flag, with a gross tonnage of over 790,000. Japan now ranks high among the maritime nations of the world, and her position therein, unless I am very much mistaken, will still further advance in the years to come.