Following the Second Moroccan Crisis, the German Government introduced a new amendment (a ‘Novelle’) to the Naval Law, greatly expanding the size, preparedness and fighting power of their fleet. This chapter follows the passage of this legislation through the Reichstag and contains Watson's analysis of the intent behind this measure. As the opening document makes clear, he was convinced that the bill was motivated by hostile feelings towards Britain. He also outlined his view that, while this increase in the German navy could not be stopped, a firm response by Britain would prevent further such increases [148]. He would continue to make this point in many instances thereafter. A further recurring issue in this period was Watson's perception that the German naval bill was being promoted by an active propaganda effort that sought to win the public by besmirching Britain. This propaganda Watson traced to Tirpitz and the news bureau of the Reichsmarineamt [157, 169], a fact that further reinforced his suspicions of the Admiral and his methods.

148. Hugh Watson, Germany N.A. No.5/12

Berlin, 8 February 1912

The German Naval Estimates, Increases and General Trend of Opinion

I have the honour to submit to your notice that in the speech delivered yesterday, opening the Reichstag, His Majesty the Emperor spoke of a strengthening of the naval and military defences of the German Empire.

No details of increases were given, and at the present moment there is no official pronouncement on the subject.

The following are, however, the heads under which the press prophesy the increases are to be placed:–

• (a.) Formation of a third battle squadron of eight ships, to be kept permanently in commission (reported on in my letter No.2 of the 26th January last).

• (b.) Addition of one armoured ship per annum to the present shipbuilding programme of the Fleet Law, and therefore in addition to the shipbuilding programme as contained in the summary of the naval estimates of 1912, published in the North German Gazette immediately before last Christmas. Another proposal urges the building of an additional armoured vessel every alternate year.

• (c.) Increase in number of submarines.

• (d.) Formation of a school squadron for torpedo-boat destroyers.