It is not possible to give the net annual saving on Navy Estimates if by net annual saving is meant the saving which will be continued year by year. For it is evident that certain classes of savings,e.g., those resulting from reduced purchases of oil fuel in 1922–23, as compared with those in 1921–22, or in the Sketch Estimates as submitted to the Geddes Committee, will not necessarily be repeated in subsequent years. The Navy Estimates for 1922–23 show a reduction, as compared with those submitted to the Geddes Committee, of £16,300,100. To this sum must be added a sum of £3,054,800 included in the current Navy Estimates on the non-effective Votes and involved by the reduction of naval personnel, These figures taken together amount to £19,354,900, and if from that sum be taken the £11,095,300 due to the stoppage of the four battle-cruisers, as the result of the Washington Conference, the net reduction may be taken as £8,259,600. I deprecate, however, the attempt to distinguish too sharply between the savings due to the Washington Conference and those resulting from the recommendations of the Geddes Committee. The Cabinet, in considering the Navy Estimates for 1922–23. had in mind the successful issue of the former as well as the latter, and were, of course, influenced by both in coming to their conclusions.