HIGH-EXPLOSIVE PRODUCTION
You must act in this matter and refer to me only when special need arises. The points to be held in view are clear and simple:—
1. We must have effective Government control of all the explosive works, so as to attain the maximum output, and ensure our not being hampered by German influences, which are powerful and subtle in the Explosive Trust.
2. Naval interests must be properly safeguarded, and this can only be either by the Navy taking Nobels and the other two companies, or by an absolutely equal representation and control as between the two Departments over the whole of the explosive factories combined. We cannot be placed in the position of being overborne by the military authorities, and having our necessary demands set aside.
3. It is, however, our duty to do everything in our power to aid in the expansion of the Army and the production of war material for the conduct of the campaign, and at a certain point only State policy can decide whether naval or military interests are to claim priority.
4. We must make a good bargain for the country; and if these people are financed by Government money to set up great new works and broaden the scale of their business, good arrangements should be made to transfer these works to the Government at the end of the war.