Orders have been placed for all the vessels included in the 1926 New Programme (except the four Motor Launches, which, as already stated, will not be built), and also for the large Floating Dock for Singapore.

The alterations to the "Warspite " were completed early in 1926, and the vessel has joined the Mediterranean Fleet.

The "Argus" has undergone a large refit and was recommissioned in January 1927.

66

"

The Queen Elizabeth" is now in hand for bulging, and the "Centurion" for conversion into a target ship to replace the Agamemnon." Both vessels are to be completed during 1927. Provision is also made for completing the re-tubing refit of the Battleship "Resolution."

The reconstruction of the " Courageous" and "Glorious " as Aircraft Carriers is proceeding; it is expected the former will be completed during the financial year 1927 and the latter during 1929.

In spite of the fact that the process of reducing H.M. Dockyards at Rosyth and Pembroke to a care and maintenance basis has now been completed, the programme of work in prospect for the Dockyards in the year 1927 is smaller in extent than that arranged for the current year, and a substantial reduction in numbers at several of the Yards will in consequence be necessary. This is due in part, as already explained, to the introduction as an experiment on the Mediterranean Station of extending the period between ships' refits.

The modernization of the Dockyard electric generating stations, and the replacement of obsolete Dockyard plant, are being continued.

Increasing attention has been given to the improvement of fuel economy in the Fleet, and further advances continue to be made in this direction both at sea and under harbour conditions. Research and experiments of various kinds tending to this end are being undertaken.

With regard to matériel generally, a large programme of research and investigatory work is occupying the scientists and technical staffs employed by the Admiralty on Service problems, and a close liaison is maintained between these and the staffs of other Government Departments, public bodies, and institutions carrying out similar work. In this connection particular reference may be made to investigatory work on heavy oil engines, as a result of which engines having a performance considerably in advance of the best obtainable commercially have been built.

Improvement in the position as regards counter measures against submarines and mines is satisfactory, and research in connection with advance in mining material and kindred weapons is making good progress.

The efficiency of Naval Signal communications has been still further developed.

x 28096

The use of Short-Wave wireless for long distance communication has enabled messages to be passed direct from the Admiralty to all the Naval overseas wireless stations and the Naval Cs.-in-C. abroad. Apart from the value of this organisation from a strategical point of view, it has been the means of effecting a material reduction in the cost of telegraphic communications.

H.M.S." Renown" was equipped with a Short-Wave wireless set prior to her departure to Australia, and except on one or two occasions, daily communication has been maintained between the United Kingdom and "Renown" throughout her voyage.

Arrangements are being made in conjunction with the General Post Office and the Board of Trade to institute shortly a British Wireless Time Signal. The high power employed at Rugby W/T Station should enable Greenwich Time thus to be received all over the world.

Printed under the authority of His Majesty's Stationery Office

By Eyre and Spottiswoode, Ltd., East Harding Street, E.C. 4,
Printers to the King's most Excellent Majesty.

W. C. B.

APPROPRIATION ACCOUNT,

1925-1926.

APPROPRIATION ACCOUNT of the SUMS granted by Parliament for NAVY SERVICES for the Year ended 31 March 1926; showing the SURPLUSES and DEFICITS upon the GRANTS and all Cases in which the Navy Department has obtained the Sanction of the Treasury to Expenditure not provided for in the Grants for that Year, together with Copies of Representations made to the Treasury by the Board of Admiralty; also the Balance Sheet showing the Ledger Balances on 30 September 1926, the Date on which the Account of Naval Receipt and Expenditure for the Year 1925-1926 was closed; together with the REPORT OF THE COMPTROLLER AND AUDITOR GENERAL thereon, and upon the STORE ACCOUNTS OF THE NAVY.

(PRESENTED PURSUANT TO ACTS 29 & 30 VICT. c. 39, s. 22
AND 11 & 12 GEO. V. c. 52, s. 4 & 6.)

Ordered, by The House of Commons, to be Printed,

4 March 1927.

LONDON.

PRINTED AND PUBLISHED BY HIS MAJESTY'S STATIONERY OFFICE
To be purchased directly from H.M. STATIONERY OFFICE at the following addresses:
Adastral House, Kingsway, London, W.C.2; 120, George Street, Edinburgh
York Street, Manchester; 1, St. Andrew's Crescent, Cardiff:

15, Donegall Square West, Belfast

or through any Bookseller.

TABLE OF CONTENTS.

1.-Report of the Comptroller and Auditor General

2.-Abstract Appropriation Account, showing the Grants of Parliament for Navy Services for the Year ended 31 March 1926, and the Sums which actually came in course of payment in that year, together with the estimated Amount of Receipts to be appropriated in aid of the said Grants, and the Sums actually realized in respect of the same

3.-Statement showing the Cash Contributions from India and the Dominions &c., towards Naval Expenditure for the Year ended 31 March 1926

4.-Statement of the Sums expended, compared with those granted, for Navy Services for the Year ended 31 March 1926..

5.-Statement of Balances Irrecoverable and Claims Abandoned, with the references to Treasury Sanctions

6.-Vote 10; Detailed Statement of the Sums expended for New Works, Additions, and Alterations, amounting to 2,0001. each and upwards, at Home and Abroad, with Explanations

7.-Note showing Details of Expenditure on Gratuities for Special Services, &c., Vote 11, Subhead K

..

8.-Note showing the Amount of Extra Remuneration (exceeding £50) received by Officers on the Civil Establishments of the Admiralty, whose salaries are provided for in the Navy Estimates

9.-Statement of Missing and Incomplete Store Accounts

10.-Statement showing unvouched, and insufficiently vouched, expenditure

11. Balance Sheet, showing the Ledger Balances on 30 September 1926, the date on which the Annual Account of the Naval Receipt and Expenditure was closed; also the proportion of the available Balance remaining on that day applicable to the still open Account for 1926.

12. Correspondence ..

REPORT of the COMPTROLLER AND AUDITOR GENERAL upon the APPROPRIATION ACCOUNT of the Receipt and Expenditure for NAVY SERVICES in the year ended 31 March 1926, and upon the Store Accounts of the Navy.

OUTCOME OF ACCOUNT.

1.-The original estimate of gross expenditure presented to Parliament was 64,363,4601. after a special over-all deduction had been made by the Government on the provision for contract work under Votes 8, 9 and 10, to discount possible delays in the progress of such work.

The gross estimate was increased to 64,443,5601. by the Supplementary Estimate of 80,1007. gross and 100l. net, dated 27 July 1925, which applied an anticipated surplus of 80,000l. on Appropriations in Aid together with estimated savings of 447,0707. to meet the cost in 1925-26 (527,1701.) of the programme of new construction.

2. The actual gross expenditure was 63,599,5411. 9s. 5d., as shown in the Abstract Appropriation Account on pages 2-5, leaving a gross surplus of 844,018/. 10s. 7d. (1.3 per cent.).

This saving was off-set by a deficit of receipts, for the first time since the war, amounting to 348,4661. 6s. 8d., leaving a net surplus of 495,552l. 3s. 11d. (0-82 per cent.), to be surrendered to the Exchequer.

3. The saving on the gross estimate includes 334,000l. on Vote 1 and 330,000l. on Vote 10, Works. The saving on Vote 1 was due almost wholly to the decision not to give officers' marriage allowance, for which provision had been made.

The saving of 330,000l. on Vote 10 represents a gross saving of 580,0001. reduced by the special deduction of 250,000l. for possible underspendings on that Vote. The gross saving includes 128,000l. and 134,000. underspent on Singapore oil fuel installation and Naval Base respectively.

4.—The deficit in receipts is accounted for mainly by non-settlement of certain salvage, collision and oil fuel claims which it had been anticipated would mature in the year; by non-realization of the addition of 80,000l. to Appropriations in Aid made in the Supplementary Estimate under Vote 8 II K (Fuel); and by postponement to the next year, owing to slower progress on the work, of a part (130,000l.) of the contribution by the Hong Kong Government towards the cost of the Singapore Naval Base. VOTE A.-NUMBERS VOTED AND BORNE.

5. The total number for all ranks sanctioned under Vote A was 103,025, including 100,597 under Vote 1. The comparative statement printed on page 10 shows that for each quarter of the year the net total bearing under Vote 1 averaged over 2,000 less than the numbers voted.

VOTE 8.

Form of Contract for Gun-Machinery.

6.—In 1925 the Admiralty, at the request of the Treasury, submitted to the Public Accounts Committee two cases in which the Department had considered it necessary to depart from an undertaking given to the Committee in 1905, that advances to contractors should not be made in anticipation of the signing of contracts.

(24025) Wt. 11707/P674 750 3/27 Harrow. G 13/10.