His wonder is so far excusable that the first ship of that navy was only launched as recently as 1911, when the battle cruiser Australia left the stocks in the yards of Messrs. John Brown & Co., of Glasgow; and she only arrived in Australia two years later. The other units of the navy are of even later construction. The existence of these vessels in Australian waters is a tribute to the enterprise and foresight of the Commonwealth of Australia. Their history and performance since the outbreak of the war has utterly confounded the naval experts of this country, who, if they had had their way, would not have had such ships in such a place.

For a quarter of a century before the foundation of the Australian navy, the whole question of naval protection for Australasia had been one profoundly unsatisfactory, both to the Imperial government and to the governments of the Southern Nations. Australia and New Zealand paid a naval subsidy to the Imperial coffers; recently it amounted to the annual sum of £200,000 from Australia and £40,000 from New Zealand. In return, the Admiralty maintained a number of obsolete warcraft in Australian waters, at a cost vastly exceeding the annual tribute. The Australasians wanted better ships; the Imperial Government desired a larger subsidy; it was an arrangement that pleased nobody.

The makeshift fleet in Australasian waters was explained by postulating the theory that when trouble came, the battle for the defence of Australasia would be fought in the North Sea, or somewhere far from the reach of Australasian ports. The experience of the first twelve months of the war may surely be held to have exploded that theory. The North Sea fleet did not prevent the Emden from bombarding Madras, and sinking merchant shipping worth £2,500,000 in Eastern waters. It would not have prevented the Scharnhorst and Gneisenau from battering Wellington and Sydney, and destroying half the ships in Australasian waters. But the theory was the pet one of all the experts, and it was employed seriously to disturb the pleasant relations between the Motherland and the Dominions.

For, about the year 1905, the uncontestable fact that the Dominions were not contributing sufficiently to the naval protection of the Empire could no longer be evaded. The question was discussed at Colonial Conferences; it was the subject of bitter newspaper articles. The Dominions wished to meet some part, at least, of their great obligations, but not in the way required by the Imperial Government. Put bluntly, the demand made of them was tribute; they were to supply money for naval defence, and have no voice in its expenditure.

Canada took a straightforward course, and withdrew her naval subsidy. New Zealand, with an admirable spirit, had a Dreadnought built, and handed it over to the Imperial Government. The battle cruiser New Zealand has done fine service in the North Sea since the outbreak of war, but had Australia been as sentimentally generous, Australasia would certainly have had cause to regret it.

But Australia planned to build a navy of her own; and a scheme for the construction of the first instalment of warships was drawn up by Rear-Admiral Sir William Cresswell, now first naval adviser to the Commonwealth. He came to London in 1906 to support his scheme, and to his sane and able advocacy of it Australia and the Empire owe a debt it will be hard to repay. It would be possible to quote some of the criticism he received here, but it would serve no good end. Suffice to say, it was couched in the superior vein that proves so irritating to the Colonial in Great Britain, especially when he knows he is right.

At the Colonial Conference of 1907, the matter came up for discussion, and Mr. Deakin and Senator Pearce, who represented Australia, succeeded in carrying their point. Expert reports were obtained, the probable cost was reckoned, and bravely faced; and Australia began to build her own warships. It is an open secret that she did so with the tacit disapproval of the Admiralty, and in face of the violent criticism of the experts.

Thus it happened that when war broke out, the Australians were able to place at the disposal of the Admiralty the following up-to-date warships in Australasian waters:—

H.M.A.S. "Australia" in Sydney Harbour.