While there is likely to be less iv the way of naval construction than would have been' the case if the earthquake did not happen, it looks as though the Navy budget will have to be increased in order to restore damaged naval stations, forts, etc, The amount asked for by the Navy and approved by the Cabinet before the quake was Yen 292,000,- 000 for the present fiscal year. It is expected that about Yen 60,000,000 or a little over 20 per cent, will be reduced, but, since is estimated that the losses sustained by the Navy ae the result of the earthquake is about Yen 160,000,000, the naval budget will have to be materially increased. Prior to the quakes, the Navy department was engaged in the construction of auxiliary vessels for which a sum of about Yen 70,000,000 had been set aside. This work, it is said, will not be postponed or abandoned, although it will be spread out over a longer space of time. Scrapping of war vessels which had been ear-marked for this purpose_ will proceed, though here again, delay to some extent has to. be expected.
Text read from the printed page and cleaned; old type leaves the occasional error.