We must take the offensive against the U-boat and the Focke-Wulf wherever we can and whenever we can. The U-boat at sea must be hunted, the U-boat in the building yard or in the dock must be bombed. The Focke-Wulf and other bombers employed against our shipping must be attacked in the air and in their nests.

The ability of the Royal Navy to escort the convoys upon which Britain's life depended was tried to the limit during this summer. Matters were made worse because the Government had not laid down any destroyers during 1938, apparently owing to Treasury pressure for economy which, almost unbelievably, was accepted. The United States Government were now straining neutrality in our favour and Mr. Churchill was continually pressing them to further efforts. He asked, among other things, for the loan of fifty or sixty destroyers, and this scheme was discussed between London and Washington.

The negotiations did not go smoothly, nor did I altogether approve of the details of the final settlement. At one time the suggestion was put forward in Washington that the entire British West Indies should be handed over for the cancellation of our war debts. I thought this less than friendly bargaining. At another, the destroyers were to be exchanged for a public assurance that the British fleet would sail to North American waters if Hitler gained control of the United Kingdom. The Prime Minister rightly protested that such an announcement would have a 'disastrous effect' on British morale. The West Indian bases alone were certainly worth more than fifty or sixty old destroyers.

The sweeping nature of the first American demands caused some delay in the negotiations. Local patriotism in the West Indies was justifiably affronted. By August 14th, however, the agreement was settled, to be ratified at the beginning of the following month. Our desperate straits alone could justify its terms. The age and condition of the fifty destroyers made unexpectedly large demands upon our dockyards. Only nine ships were available before the end of 1940, by which time our own naval construction was catching up on our losses.

Help on a larger scale was soon to be forthcoming. Reelected President on November 5th, Mr. Roosevelt suggested almost at once plans to open 'the Arsenal of Democracy' for Great Britain. In March 1941 the cash-and-carry basis of British purchasing in the United States was abolished, and the principle of lend-lease sanctioned by Congress. Later the same month documents handing over bases in Newfoundland, Bermuda and the West Indies were signed.

An admiralty announcement on Saturday said that the battlecruiser Hood suffered an unlucky hit in a magazine and blew up. It is feared that there will be few survivors. The 35,000 ton Bismarck, one of Germany's two newest battleships was damaged.

The two new German battleships Bismarck and Tirpitz may both have been present, though only the Bismarck is mentioned in the official bulletin. Recently the German Admiralty was at pains to let the world know that both were completed and on service. They are reported to have been designed to steam at more than 30 knots, and if that is their speed the Hood should be the ship most likely to keep them within range in a running fight. None of our battleships can exceed 25 knots apart from the new King George V class, and we know nothing of their whereabouts.

The destruction of the Hood is surprising, for her design was based on the lessons of Jutland, where three battlecruisers were all destroyed by the blowing up of their magazines. The armour protection for the Hood was considered by the experts to be the most effective that could be devised. All the protection possible was provided in the gun turrets and ammunition trunks to prevent the flash of an explosion passing down the trunk into the magazine and the handling rooms - the cause of the destruction of the Queen Mary, the Indefatigable, and the Invincible at Jutland - and more than a third of the weight of the ship was devoid of armour.

I wish to express to you and all under your command my admiration and warmest thanks for your achievements in the anti- U-Boat war during the month just ended. The brilliant success achieved in this field is the well deserved result of tireless perseverance and devotion to duty and is, I am sure, a welcome reward for the aircrews and others who have spared no effort during long months of arduous operations and training. Now that you have obtained this remarkable advantage over the U-Boats I know you will press it home with ever-increasing vigour and determination until, in conjunction with the Royal Navy, you have finally broken the enemy's morale.