"I may, however, say at once that I have always been in favour of a Defence Committee of Cabinet, with expert advisers and permanent records carrying on the work from Government to Government; and that, oddly enough, I pressed the idea on Asquith last week. I think he and Rosebery would be in favour of the plan; not so the older members of the Cabinet."

'On Friday, January 5th, 1894, I had a long interview with Balfour upon my letter, and wrote on it to Wilkinson as follows:

'"Confidential.

'"76, Sloane Street, S.W., '"January 5_th_, 1894.

'"Dear Wilkinson,

'"I saw Balfour (in a full discussion) this afternoon. We provisionally agreed, with Lord Salisbury's consent, that Sir George Chesney, Arnold-Forster (if he agrees), you, and I, should sign a letter which we should address (with the view to publishing it with the replies) to Mr. Gladstone as Prime Minister and leader of my party, to Lord Salisbury and to Balfour as leaders of Sir George Chesney's party, and to the Duke of Devonshire and Chamberlain as leaders of Arnold-Forster's party, and of which I should privately send a copy to the Prince of Wales in the hope of its reaching the Queen. In this letter we should press for the joint consideration of the naval and military problem, and point either to the creation of a Defence Ministry, of which the War Office and Admiralty would be the branches—to which the objection is that Parliamentary consent would be necessary—or to a more active control over the Secretary of State for War and the First Lord of the Admiralty, and their Estimates, by the Prime Minister personally, or to that which is Balfour's own scheme and which has the support, among our people, of Rosebery and Asquith: the creation of a Defence Committee of the Cabinet, ordinarily to consist of the Prime Minister, of the leader of the other House, of the Secretary of State for War, the First Lord, and (doubtless) the Chancellor of the Exchequer (?), with expert advisers and permanent records which would carry on their work from Government to Government. Mr. Gladstone would snub us. The other four would not, and our proposal (that is, our third proposal, which is Balfour's) would probably be adopted when the Conservatives came in, and continued by the Liberals.

'"Balfour would be very willing to express his favourable opinion of our view in debate in the House of Commons, should we raise one next Session, and Lord Salisbury is less inclined to make a strong and distinctly favourable reply to our letter than is Balfour.

'"Balfour would go more willingly, if possible, than he does into the schemes if he could see his way beforehand to the saving of money on the army for the purpose of devoting it to the navy. He says that he himself cannot put his finger on the waste which he knows must exist, that Buller has to some extent his confidence and tells him that there is none, although Balfour is not convinced by this. We discussed our Indian army scheme, to which he sees no objection, and (very fully) the Duke of Cambridge and the extent to which he will be supported by the Queen.

'"Balfour sees immense difficulty in the absence of a sufficiently commanding expert, and in the consequent jealousy between the Admiralty and War Office officials.

'"Will the letter which Sir George Chesney has do as a base, or would it be better to write a shorter and a fresh letter? If the latter, will you try your hand at it, if you approve? And after noting this will you return it to me, that I may send it to Sir George Chesney and then to Arnold-Forster?