‘The purposes of British naval power are essentially defensive. We have no thoughts, and we have never had any thoughts of aggression, and we attribute no such thoughts to other great Powers. There is, however, this difference between the British naval power and the naval power of the great and friendly Empire—and I trust it may long remain the great and friendly Empire—of Germany. The British Navy is to us a necessity and, from some points of view, the German Navy is to them more in the nature of a luxury. Our naval power involves British existence. It is existence to us; it is expansion to them. We cannot menace the peace of a single Continental hamlet, no matter how great and supreme our Navy may become. But, on the other hand, the whole fortunes of our race and Empire, the whole treasure accumulated during so many centuries of sacrifice and achievement, would perish and be swept utterly away if our naval supremacy were to be impaired. It is the British Navy which makes Great Britain a great Power. But Germany was a great Power, respected and honoured all over the world, before she had a single ship.... ‘If to-day our position is eminently satisfactory we owe much to the foresight and resolution of Mr. McKenna.... Whatever is needed for the safety of the country will be asked for by the Government, and granted by the representatives of the nation with universal assent. There is no need for anxiety in regard to our shipbuilding capacity. There is no chance whatever of our being overtaken in naval strength unless we want to be.... ‘But what of the men ? We have to-day 135,000 men in the active service ratings of the Navy. The great bulk of them are long-service men who have begun as boys and have been trained as a lifelong profession to the naval service. We have no difficulty in recruiting for the Navy ... and there is no doubt whatever of our ability to make any increases which may be necessary, and which I think will be necessary, in the _personnel_ of the Navy. We have great reserves of seamen in this country. There are measures which may be taken to make a greater use of our reserves than has hitherto been found possible, and I have given directions for that part of the subject to be carefully studied by the naval experts upon whom I rely. Our reserves, both from the Royal Navy and from the Mercantile Marine, are a great resource, _and this island has never been, and never will be, lacking in trained and hardy mariners bred from their boyhood up to the service of the sea_.