6. Protection will be afforded to British seaborne trade in time of war by the following measures:—

A. Hunting down of enemy’s warships and armed vessels.

Every German cruiser stationed abroad should be covered in peace and brought to action in war by a superior vessel of superior speed, or alternatively by two equal vessels having speed advantage.

B. Organised warning of British merchant vessels.

All British armed merchantmen plying on the routes will, on receiving the warning telegram by wireless, open their secret instructions which direct them to steam along their regular route warning all unarmed British vessels met with to leave the trade route, and steam without lights at night, keeping well away from their usual course, avoiding company, and making their own way to their port of destination.

7. Similar warnings and directions adapted to each case and each route will be issued by British Consuls at all ports. These should be prepared beforehand in the fullest detail and according to a general scheme. For instance, the British Consul at Buenos Ayres should have separate instructions all ready prepared for every British ship leaving the port for the United Kingdom. These instructions will be regularly kept up to date by the Trade Division of the Admiralty War Staff. They will prescribe for each ship the general course she is to follow, the portions of the voyage she should endeavour to cover in darkness, and the areas within which she will find safety. A good wireless organisation can, of course, deal at once with all vessels so fitted. Thus the unarmed trade will, in the first week of the war, be effectively scattered over immense areas of ocean.

The control and guidance of merchant traffic must, of course, vary with circumstances. There are two quite different situations to consider. The first is that which occurs at the moment of a sudden outbreak of war. We must assume that hostilities begin by surprise, and that the enemy’s commerce destroyers, whether warships or armed merchantmen, will begin their attacks within a very few hours of the first warning being given. None of our Third Fleet cruisers will be on their stations. The only vessels available will be the ordinary foreign squadrons and the fast cruisers shadowing individual German warships, and these will probably not be in positions which have any special relation to the trade routes. None of the British converted auxiliary merchant cruisers will be on the routes: the only thing that will be there and that can be there are the defensive armed merchantmen. In these circumstances it seems probable that the best course would be to scatter the trade; and it is in any case essential that we should have the power to do so, and that all arrangements should be made to that end.

8. When, however, the war has been in progress for some time, and in proportion as our available force increases and we pass from a peace to a war organisation, it may well be that the scattering of the trade will no longer be necessary or even desirable, except perhaps locally between special points. Trading vessels would then be told to return to their regular trade routes; and this might easily lead to drawing such commerce destroyers as then remain into areas where they could be reported, located, and destroyed, by the British cruisers.

9. The organisation for the control and guidance of the trade should therefore be of so complete a character that the trade may be either dispersed about the ocean or concentrated along particular routes; or in some places dispersed and in other concentrated; and that changes from one policy to the other can be made when necessary at any time.

10. The British armed merchantman will only be employed on a strictly limited service, namely, that of carrying food supplies to the United Kingdom. They will be forbidden to engage enemy’s warships and are to surrender if overtaken by them. They will not molest or pursue unarmed ships of the enemy. They will only fire on enemy’s armed merchantmen if they are themselves attacked or pursued by them.