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PROBLEMS OF EMPIRE.

it. If the British-China squadron were reinforced on the outbreak of war by ships from the Australian or Pacific stations, it would have a reasonable prospect of defeating, or, at any rate, holding in check the combined squadrons of France and Russia. It is certain that the vessels used for this purpose would do more under present circumstances to defend the coasts of Australia and Canada in Chinese waters than they would ever do if they remained in Australian or Canadian waters. I do not wish to be understood to suggest that the squadron in Australia should be reduced and that in China strengthened in peace time.

Against raiding expeditions accompanied by a few troops which might escape our cruisers, Australia must be prepared to defend herself by maintaining a military force, not necessarily numerous, but certainly efficient and capable of taking the field against disciplined troops. An efficient military force in the Australian Colonies would not only render them secure against attack, but could also give valuable assistance to the common defence of the Empire by capturing the naval bases of the enemy in neighbouring seas.

Appreciation by the Government of the Australian Auxiliary Squadron. Though the agreement as regards the auxiliary squadron is only made for ten years, it will not terminate, except on notice being given by the parties to the agreement. In a recent speech delivered before the British Empire League, the Duke of Devonshire said: 'I may say that Her Majesty's present Government attach the greatest importance to the renewal in some form or other of that agreement.' From the Imperial point of view, a contribution of 135,000l. a year is a very small item in Navy Estimates, which amount to 22,000,000l. At the same time this contribution is

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