November 16, 1911.

I have now to put before you my proposals for a new Board of Admiralty, and the changes consequent thereupon. Having now seen all the principal officers who might be considered candidates for such a post, I pronounce decidedly in favour of Sir Francis Bridgeman as First Sea Lord. He is a fine sailor, with the full confidence of the Service afloat, and with the aptitude for working with and through a staff, well developed. If, as would no doubt be the case, he should bring Captain de Bartolomé as his Naval Assistant, I am satisfied that the work of this office would proceed smoothly and with despatch. I have discussed the principal questions of strategy, administration and finance with him, and believe that we are in general agreement on fundamental principles. If you approve, I will write to Sir Francis and enter more fully into these matters in connection with an assumption by him of these new duties.

This appointment harmonises, personally and administratively, with that of the new Second Sea Lord, Prince Louis of Battenberg, of whom I have already written to you, and of whose assistance I have the highest expectations. Rear-Admiral Briggs, the Controller and Third Sea Lord, has, after a year, just begun to acquire a complete knowledge of his very extensive department, and I do not think it necessary to transfer him at the present time. He will be the only naval member of the old Board to remain. Rear-Admiral Madden is, in any case, leaving on January 5, and I am advised from all quarters, including both the proposed First and Second Sea Lords, that the best man to fill his place is Captain Pakenham. This officer, who is very highly thought of for his intellectual attainments, has also the rare distinction of having served throughout the Russo-Japanese War, including the battle of the Tsushima.

The Home Fleet, which becomes vacant, has not, unhappily, any candidate of clear and pre-eminent qualifications. Admiral Jellicoe is not yet sufficiently in command of the confidence of the Sea Service, to justify what would necessarily be a very startling promotion. I shall, however, be taking the perfectly straightforward and unexceptionable course in placing Vice-Admiral Sir George Callaghan, the present Second in Command, who has been in almost daily control of the largest manœuvres of the Home Fleet, and who has previously been Second in Command in the Mediterranean, in the place of Sir F. Bridgeman. Sir John Jellicoe will be his Second in Command, and we shall thus be able to see what fitness he will develop for the succession.

It appears to me not merely important but necessary that these changes should operate without delay. The draft Estimates have all arrived for discussion, and a month of the most severe work, governing the whole future policy of the next two years, awaits the Board of Admiralty. This task can only be satisfactorily discharged if it is undertaken by men who come together with consenting minds, and who will find themselves responsible to the Cabinet and to Parliament for the immediate consequences of their decisions. I would therefore ask you to authorise me to approach all parties concerned without delay, and unless some unexpected hitch occurs I shall hope to submit the list to the King not later than Wednesday next. The New Board would thus be fully constituted before the end of the present month.

Afloat the decisive appointment was that of Sir John Jellicoe to be second in command of the Home Fleet. He thus in effect passed over the heads of four or five of the most important senior Admirals on the active list and became virtually designated for the supreme command in the near future.

The announcement of these changes (November 28) created a considerable sensation in the House of Commons when, late at night, they became known. All the Sea Lords, except one, had been replaced by new men. I was immediately interrogated, “Had they resigned, or been told to go?” and so on. I gave briefly such explanations as were necessary. At this time I was very strong, because most of those who knew the inner history of the Agadir crisis were troubled about the Fleet, and it was well known that I had been sent to the Admiralty to make a new and a vehement effort.

Sir Arthur Wilson and I parted on friendly, civil, but at the same time cool terms. He showed not the least resentment at the short curtailment of his tenure. He was as good-tempered and as distant as ever. Only once did he show the slightest sign of vehemence. That was when I told him that the Prime Minister was willing to submit his name to the King for a Peerage. He disengaged himself from this with much vigour. What would he do with such a thing? It would be ridiculous. However, His Majesty resolved to confer upon him the Order of Merit, and this he was finally persuaded to accept. On his last night in office he gave a dinner to the new Sea Lords in the true “band of brothers” style, and then retired to Norfolk. I could not help thinking uncomfortably of the famous Tenniel cartoon, “Dropping the Pilot,” where the inexperienced and impulsive German Emperor is depicted carelessly watching the venerable figure of Bismarck descending the ladder. Nevertheless I had acted on high public grounds and on those alone, and I fortified myself with them.

As will be seen in its proper place, Sir Arthur Wilson came back to the Admiralty three years later, and worked with Lord Fisher and me during the six months of our association in the war. When Lord Fisher resigned in May, 1915, I invited Sir Arthur to take up the duties of First Sea Lord and he consented to do so. On learning, however, a few days later that I was to leave the Admiralty, he wrote to Mr. Asquith refusing to undertake the task under any other First Lord but me. Here is his letter:—

May 19, 1915.