On Thursday Mr. Churchill made his speech on the Navy
Estimates and definitely announced the opening, so far as fuel is concerned, of a new chapter in our naval history. Though coal may remain for some time the basis of our motive power, oil will gradually take its place. In order to prepare for the change, the immediate policy of the Govern- ment is to obtain oil by contracts for five years. Their ultimate policy is to become the independent owner and producer of their own supplies of liquid fuel. Mr. Churchill further announced that no addition to the naval programme is to be made in consequence of the temporary suspension of the Canadian offer. Acceleration of shipbuilding will, however, temporarily fill the gap and maintain our position. Our present naval output, Mr. Churchill declared, will give us a new destroyer once a week, a light cruiser every month, and a super-Dreadnought every forty-five days. As for the air, two rigid airships are projected and six non-rigid airships, and more " sea-planes " have been ordered.