(2) The introduction of star shell.

(3) The improvement of the arrangements made, after our experience in the Jutland action, for preventing the flash of exploding shell from being communicated to the magazines.

Taking these in order, the New Armour-piercing Shell would have produced a very marked effect had a Fleet action been fought in 1918. Twelve thousand of these new pattern shell had been ordered by November, 1917, after a long series of experiments, and a considerable number were in an advanced stage of construction by the end of the year. With our older pattern of shell, as used by the Fleet at Jutland and in earlier actions, there was no chance of the burst of the shell, when fired at battle range, taking place inboard, after penetrating the side armour of modern German capital ships, in such a position that the fragments might be expected to reach and explode the magazines. A large proportion of the shell burst on the face of the armour, the remainder while passing through it. In the case of the new shell, which was certainly twice as efficient and which would penetrate the armour without breaking up, the fragments would have a very good chance of reaching the magazines of even the latest German ships.

The greatest credit was due to the Ordnance Department and to our enterprising manufacturers for the feat which they achieved. We had pressed for a shell of this nature as the result of our experience during the Jutland action, and it was badly wanted.

We had experienced the need for an efficient Star Shell both in the Grand Fleet and in southern waters, and after the Jutland action the attention of the Admiralty had been drawn by me to the efficiency of the German shell of this type. In the early part of 1917, during one of the short night bombardments of the south coast by German destroyers, some German star shell, unexploded, reached the shore. Directions were at once given to copy these shell and not to waste time by trying to improve upon them, a procedure dear to technical minds but fatal when time is of the first importance. Success was soon attained, and star shell were issued during 1917 to all our ships, the vessels of the Dover and Harwich patrol force and the shore battery at the North Foreland being the first supplied.

Important experiments were carried out in 1917 on board H.M.S. Vengeance to test the Anti-flash arrangements with which the Fleet had been equipped as the result of certain of our ships being blown up in the Jutland action. Valuable information was obtained from these experiments and the arrangements were improved accordingly.

The work of the Torpedo and Mining Department was also of great value during 1917. The principal task lay in perfecting the new pattern mine and arranging for its production in great numbers, in overcoming the difficulties experienced with the older pattern mines, and in arranging for a greatly increased production of explosives for use in mines, depth charges, etc.

These projects were in hand when the new organization involving the appointment of an Admiralty Controller was adopted.

The circumstances in which this great and far-reaching change in organization was brought about were as follows. In the spring of 1917 proposals were made to the Admiralty by the then Prime Minister that some of the work carried out at that time by the Third Sea Lord should be transferred to a civilian. At first it was understood by us that the idea was to re-institute the office of additional Civil Lord, which office was at the time held by Sir Francis Hopwood (now Lord Southborough), whose services, however, were being utilized by the Foreign Office, and who had for this reason but little time to devote to Admiralty work. To this proposal no objection was raised.

At a later stage, however, it became evident that the proposal was more far reaching and that the underlying idea was to place a civilian in charge of naval material generally and of all shipbuilding, both naval and mercantile. Up to the spring of 1916 mercantile shipbuilding had been carried out under the supervision of the Board of Trade, but when the office of Shipping Controller was instituted this work had been placed under that Minister, who was assisted by a committee of shipbuilders termed the "Shipbuilding Advisory Committee." Statistics show that good results as regards mercantile ship production were not obtained under either the Board of Trade or the Shipping Controller, one reason being that the supply of labour and material, which were very important factors, was a matter of competition between the claims of the Navy and those of the Mercantile Marine, and another the fact that many men had been withdrawn from the shipyards for service in the Army. There was especial difficulty in providing labour for the manufacture of machinery, and at one time the Admiralty went so far as to lend artificers to assist in the production of engines. The idea of placing the production of ships for both services under one head appealed to and was supported by the Admiralty. The next step was a proposal to the Admiralty that Sir Eric Geddes, at that time the head of the military railway organization in France with the honorary rank of Major-General, should become Admiralty Controller. This would place him in charge of all shipbuilding for both services as well as that portion of the work of the Third Sea Lord which related to armament production. I was requested to see Sir Eric whilst attending a conference in Paris with a view to his being asked to take up the post of Admiralty Controller. This I did after discussing the matter with some of the heads of the War Office Administration and members of General Headquarters in France.