Cunard chairman Lord Inverclyde thus approached the British government for assistance. Faced with the impending collapse of the British liner fleet and the consequent loss of national prestige, as well as the reserve of shipping for war purposes which it represented, they agreed to help. By an agreement signed in June 1903, Cunard was given a loan of £2.6 million to finance two ships, repayable over 20 years at a favourable interest rate of 2.75%. The ships would receive an annual operating subsidy of £75,000 each plus a mail contract worth £68,000. In return, the ships would be built to Admiralty specifications so that they could be used as auxiliary cruisers in wartime.