June 23, 1941 Sir, I am instructed by the Admiralty to put forward the following requests from the Prime Minister and the First Lord of the Admiralty for the provision of Convoy Escort Vessels, Minesweepers, Submarines and Tugs. A. Convoy Escort Vessels. 2. The extension of the field of enemy submarine activity has increased our need for ships to protect our con- voys. 3. The need can be met most economically by the Con- voy Escort Vessel of about 1,500 tons. It is estimated that two or three Convoy Escorts can be built in the place of one Destroyer. On the other hand our experience of vessels of less than 1,500 tons proves that they are not able to fulfil their function in the Atlantic and we deprecate the expenditure of building effort on smaller vessels for this purpose. 4. The capacity of U.K. and Canada is estimated to be eight Convoy Escorts per month. This rate of increase does not meet our expanding requirements and we are seriously con- cerned to provide against the possibility of damage to our pro- ductive capacity by enemy action. 5. It is understood that U.S.A. have designed a Convoy Escort Vessel of about 1,5000 tons. If production of such a ship is a reasonably early prospect, building and release of some of them would be a great contribution towards solving our convoy problems. In the interim, transfer of the 7 Coastguard Cutters of the George W. Campbell type would be of utmost value. 6. As a longer term policy it is requested that con- sideration may be given to the building of 100 Convoy Escort Vessels of about 1,500 tons for transfer to the British Navy at rate of about 10 per month. The exact number and rate to be fixed so that Merchant Shipbuilding may not be interferred with. B. Minesweepers. 7. Anxiety is also felt about our present deficiency of large size Minesweepers and possible damage to our pro- ductive capacity for this type. We should be glad to know of the possibility of obtaining 20 vessels such as AM 57-81 of 1,070 tons standard displacement. 8. These vessles if supplied could be regarded as taking the place of some of the Trawlers for which requisitions |