"The new construction under the Law prescribes for the building of three additional battleships--one to be begun next year (1913), one in 1916, and two small cruisers of which the date has not yet been fixed. The date of the third battleship has not been fixed. It has been presumed to be later than the six years which we have in view. "The cost of these increases in men and in material during the next six years is estimated as £10,500,000 above the previous estimates spread over that period. I should like to point out to the Committee that this is a cumulative increase which follows upon other increases of a very important character. The Law of 1898 was practically doubled by the Law of 1900, and if the expenditure contemplated by the Law of 1900 had been followed the German estimates of to-day would be about £11,000,000. But owing to the amendments of 1906 and 1908, and now of 1912, that expenditure is very nearly £23,000,000. But the fact that the personnel plays such a large part in this new amendment, and that personnel is more cheaply obtained in Germany than in this country, makes the money go farther there than it would do over here. "The ultimate scale of the new German Fleet, as contemplated by the latest Navy Law, will be 41 battleships, 20 battle or large armoured cruisers, and 40 small cruisers, besides a proper proportion--an ample proportion--of flotillas of torpedo-boat destroyers and submarines, by 1920. This is not on paper a great advance on the figures prescribed by the previous Law, which gave 38 battleships, 20 battle or large armoured cruisers, and 38 small cruisers. That is not a great advance on the total scale. In fact, however, there is a remarkable expansion of strength and efficiency, and particularly of strength and efficiency as they contribute to striking power. The number of battleships and large armoured cruisers alone which will be kept constantly ready and in full commission will be raised by the Law from twenty-one, the present figure, to thirty-three--that is to say, an addition of twelve, or an increase of about 57 per cent. The new fleet will in the beginning include about twenty battleships and large cruisers of the older types, but gradually, as new vessels are built, the fighting power of the fleet will rise until in the end it will consist completely of modern vessels.