"Your Excellencies, gentlemen. The strength of the Royal Navy remains undisputed as the foremost naval power in the world. However, whether we can retain this status in the future is uncertain. According to the intelligence we have gathered, the Germans are fervently constructing warships. The gap between us is steadily narrowing. If we do not accelerate our efforts, there may come a day when the Germans surpass us," Churchill stated.
"Lord Churchill, your words seem rather alarmist, do they not? How could the Germans possibly compare to us in terms of capital ships?" questioned Chancellor of the Exchequer Lloyd George. If the Navy were to expedite the construction of warships, it would necessitate additional funding, placing immense pressure on Britain's finances. Thus, Lloyd George naturally preferred to maintain the current pace of shipbuilding.
"Chancellor, this is no mere exaggeration. Although the Germans have maintained strict secrecy regarding their new warships, we can still draw reasonable conclusions from various clues. For instance, their first-class battleship, the 'Nassau-class,' comprises four vessels. The displacement of the 'Nassau-class' is roughly equivalent to that of our 'Saint Vincent-class' battleships. Given the Germans' traditional emphasis on defensive ship design, their capabilities are likely comparable to our own 'Saint Vincent-class.' But let us not forget, this is Germany's first class of dreadnoughts, while the 'Saint Vincent-class' is among the most powerful battleships currently in service with the Royal Navy," Churchill continued.
Instantly, the smiles faded from the faces of the Cabinet ministers; they were not naive and recognized the implications. If Germany's first-class dreadnoughts were on par with Britain's strongest vessels, what did that say about the battleships already constructed? Such a scenario would render the Royal Navy's capital ships vulnerable in the event of conflict—a prospect too disconcerting for these proud Englishmen to accept.
"This is Germany's latecomer advantage! However, the 'Orion-class' battleships we are constructing are armed with 343mm guns. Once commissioned, they will significantly bolster the Royal Navy's strength!" countered First Lord of the Admiralty McKenna.
"Indeed, our 'Orion-class' battleships are formidable. But if they are to be commissioned, it will likely take until the year after next. Moreover, intelligence suggests that the Germans have already deployed their second-class battleship, the 'Helgoland-class,' which is armed with 343mm guns," Churchill once again dropped a bombshell.
"Impossible! That is absolutely unthinkable. The Germans could not possibly develop 343mm guns before us," McKenna exclaimed.
The news was indeed shocking. The Royal Navy's battleships equipped with 343mm guns had only just begun construction, while the German Navy had already put theirs into service. This unmistakably indicated a widening gap between the two forces. Indeed, the Royal Navy appeared to be lagging behind the Germans.
Prime Minister Asquith's expression grew serious. "Is the disparity between the Royal Navy and the German Navy truly this significant?"
"Prime Minister, this is merely a speculation from our intelligence division, and it has not been confirmed. However, the likelihood is quite high, and I believe it merits our attention," Churchill replied.
Asquith nodded; even though it remained unverified, the intelligence was too critical to overlook. Britain must remain vigilant. Should the intelligence prove accurate and the nation unprepared, the consequences could be dire.
"McKenna, does the Navy have a response to this?" Asquith inquired.
"Prime Minister, I will instruct the major shipyards to accelerate the construction of the 'Orion-class' battleships. Additionally, the subsequent 'King George V-class' and 'Iron Duke-class' battleships will also commence as swiftly as possible. It is impossible for the Germans to outnumber us in capital ships," McKenna asserted.
Britain's shipbuilding capacity was unparalleled globally. Many shipyards possessed the capability to construct battleships, and if they operated at full capacity, the Royal Navy's strength could increase dramatically.
"Where would the Germans acquire the funds to build so many battleships? Their financial revenues surely cannot sustain such expenditures," Chancellor Lloyd George remarked.
"Indeed! This is a significant concern. We have vast colonial support, enabling us to amass wealth for naval development. But what of the Germans? Although their industrial output has surpassed ours, their fiscal revenues may not match ours. Moreover, they must contend with land-based adversaries. To prepare against France and Russia, the German army is also strengthening its forces. Under these circumstances, where do they find the funds to construct so many battleships?" Army Minister Richard Haldane added.
This was undoubtedly a question that lingered in the minds of the British Cabinet ministers.
"Prime Minister, I may have a possible explanation," Churchill offered.
"What is it?" Asquith asked.
"The German monarchy may be utilizing its wealth to support the naval construction," Churchill proposed.
Asquith nodded; it was indeed a plausible reason. The wealth held by the German monarchy was considerable.
"It seems we must urge His Majesty to provide substantial support for naval development," Asquith declared.
Other ministers nodded in agreement. McKenna's face lit up with a glimmer of hope. With more funds, they could construct additional battleships, further enhancing the Royal Navy's capabilities.
"Beyond the German monarchy's support for their navy, I believe Crown Prince Oscar is also utilizing his own funds to bolster the navy. The Deutsche Lottery Company generates substantial wealth in Britain each year, which is now being used to develop their navy against the British Empire. Such actions are undeniably disgraceful. Therefore, we should consider shutting down the Deutsche Lottery Company," Churchill suggested.
Churchill had long harbored dissatisfaction with the Deutsche Lottery Company's exploitation of British resources, and now he saw an opportunity to take decisive action against it.