recommended a reduction in Britain’s own cruiser program in order to
give the Americans an opportunity to ‘cool down’. On 4 August, while
the First Lord was still in Geneva, the cabinet assented to a new inquiry
into future naval construction.
30
This body began its deliberations on 10 November 1927.
31
Churchill
wisely emphasised the impact that dropping two cruisers from each of
the 1927 and 1928 construction programs would have on the United
States. He buttressed this case with assurances that his proposals would
not endanger British interests. By 1931, he noted, Britain would possess
more than a 25 per cent superiority over the United States and Japan
combined in cruiser strength even if no new construction were
undertaken.
32
When the Committee met on 1 December to reach a
decision, its members unanimously backed the Chancellor.
33
Their report
recommended dropping two cruisers from the current year’s program
and one more the following year.
34
Having soundly defeated the navy on the cruiser question, Churchill
immediately took aim at its 1928 estimates. The Admiralty had proposed
a figure of £58,330,000, but the Chancellor insisted on no more than £56
million, claiming that the Admiralty had not taken full account of the
favorable international situation, ‘especially as regards Japan’, or the
government’s decision that no great war ‘need be anticipated for at least
ten years’.
35
Bridgeman denied this charge, but there was much truth in
it. The Admiralty’s policies and war plans were still based on the need to
prepare for a major war with Japan, while the ten-year rule, last
reaffirmed in 1925, was taken to mean that the navy must be ready for
such a conflict by 1935.
36
This legalistic interpretation was not
unreasonable, but the Treasury had different ideas. When Captain Ernle
Chatfield, the Controller, said the Admiralty had never been told
anything different, Churchill insisted ‘that the end of the 10 years was
continually receding’.
37
The Treasury was increasingly frustrated by the prominence of Japan
in the navy’s calculations despite repeated assurances on this question
from the Foreign Office and the cabinet.
38
When the Naval Programme
Committee discussed the oil fuel reserve in February 1928, Churchill
vigorously denounced ‘the great Japanese war bogey’, which, he claimed,
had been created by Beatty in 1920–21 ‘with a view to supplying the
necessary stimulus on which naval estimates, naval expansion and naval
supplies could be based’. Everything, he insisted, ‘excludes a war
between England and Japan from the sphere of reasonable probability’.
39
The Committee rejected the Admiralty’s plans to purchase 330,000 tons
of oil fuel for the navy’s annual reserve in 1928, and for the third
consecutive year the figure was reduced to 100,000 tons.
40
Treasury
officials had hoped for other reductions, however, and determined to
reduce future naval expenditure by strictly enforcing their interpretation
PACIFIC SECURITY AND THE LIMITS OF BRITISH POWER 1921–41 61