From these facts, viewed in their chronological order, it is clear that on sea as on land Germany has set the pace. Thirty years ago the German navy did not enter into England's naval calculations. For the last six years, if not for a longer period, it has been the one navy which our Admiralty felt the necessity of watching from year to year, and indeed from month to month. It is the first time for more than a hundred years that we have had to face the problem of 'a powerful homogeneous navy under one government and concentrated within easy distance of our shores.' On German principles we should long ago have adopted the 'offensive-defensive.' We have been at least as seriously menaced by Germany at sea as Germany has been menaced by Russia upon land. But we can confidently say that in the period of rivalry our fleet has never been used as a threat, or turned to the purposes of an aggressive colonial policy. Rightly or wrongly, we have refused to make possible intentions a case for an ultimatum. We have held by the position that only a breach of public law would justify us in abandoning our efforts for the peace of Europe. NOTE _Abstract of Anglo-French Agreement on Morocco_. In April, 1904, England and France concluded an agreement for the delimitation of their interests on the Mediterranean littoral of North Africa. The agreement included five secret Articles which were not published until November, 1911. The purport of the Articles which were published at the time was as follows. By the first Article England stated that she had not the intention of changing the political state of Egypt; and France declared that she would not impede the action of England in Egypt by demanding that a term should be fixed for the British occupation or in any other way. By the second Article France declared that she had not the intention of changing the political state of Morocco; and England recognized that it appertained to France, as the Power conterminous with Morocco, to watch the tranquillity of this country and to assist it in all administrative, economic, financial, and military reforms which it required, France promised to respect the customary and treaty rights of England in Morocco; and by the third Article England made a corresponding promise to France in respect of Egypt. By the fourth Article the two Governments undertook to maintain 'the principle of commercial liberty' in Egypt and Morocco, by not lending themselves in either country to inequality in the establishment of Customs-duties or of other taxes or of railway rates. The sixth and seventh Articles were inserted to ensure the free passage of the Suez Canal and of the Straits of Gibraltar. The eighth declared that both Governments took into friendly consideration the interests of Spain in Morocco, and that France would make some arrangements with the Spanish Monarchy. The ninth Article declared that each Government would lend its