Due to intense competition from the record-breaking German liners and the worrying takeover of most of the Premier British shipping lines by the American I.M.M. Co., Cunard and the British Admiralty finalise a special agreement whereby the British Government will loan Cunard £2,600,000 over 20 years at only 2.75 per cent interest.
Over those same 20 years, the Admiralty will pay Cunard a subsidy of £150,000 per annum. In return, Cunard will use the money loaned to them to build two new ships. They would have to defer to the Admiralty on all aspects of basic design as both vessels were to be built to the Admiralty specifications for heavy cruisers. In time of war, these two ships and indeed the entire Cunard fleet, were to be placed at the disposal of the Admiralty. The two new ships were to become the LUSITANIA and MAURETANIA. Cunard also guarantee to remain a British Company.
|