‘Whatever may happen abroad there will be no whining here, no signals of distress will be hoisted, no cries for help or succour will go up. We will face the future as our ancestors would have faced it, without disquiet, without arrogance, but in stolid and inflexible determination. We should be the first Power to welcome any retardation or slackening of naval rivalry. We should meet any such slackening not by words but by deeds.... If there are to be increases upon the Continent of Europe, we shall have no difficulty in meeting them to the satisfaction of the country. _As naval competition becomes more acute, we shall have not only to increase the number of the ships we build, but the ratio which our naval strength will have to bear to other great naval Powers_, so that our margin of superiority will become larger and not smaller as the strain grows greater. Thus we shall make it clear that other naval Powers, instead of overtaking us by additional efforts, will only be more outdistanced in consequence of the measures which we ourselves shall take.’ This speech created a considerable outcry in Germany, which was immediately re-echoed by a very large proportion of our own Liberal press. It appeared that the word “luxury” had a bad significance when translated into German. The ‘_Luxus Flotte_’ became an expression passed angrily from lip to lip in Germany. As I expected, on my return to London I found my colleagues offended. Their congratulations upon Belfast were silenced by their reproaches about Glasgow. Mr. Haldane returned two days later from Berlin, and the Cabinet was summoned to receive an account of his mission. Contrary to general expectation, however, the Secretary of State for War declared that so far from being a hindrance to him in his negotiations, the Glasgow speech had been the greatest possible help. He had in fact used almost identical arguments to von Bethmann-Hollweg the day before. He had told the Chancellor that if Germany added a third squadron we should have ‘to maintain five or even six squadrons in home waters, perhaps bringing ships from the Mediterranean to strengthen them’; that if ships were added to the existing programme we should ‘proceed at once to lay down two keels to each of the new German additions’; and that for the sake of the Navy ‘people would not complain of the addition of another shilling to the income tax.’ He described how he had read the operative passages in my speech himself to the Emperor and Von Tirpitz in proof and confirmation of what he had himself been saying during their previous discussions. This settled the matter so far as I was concerned. It was only another instance of the very manly and loyal part which Mr. Haldane took at all times and on every question connected with the preparedness of this country for war with Germany.