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That was why the Cromarty Government had been forced eventually to put the technology embargo in purely economic terms. The Star Kingdom had been less than subtle in the pressure applied, but nothing less than a threat to close the Manticore Junction to all League-registered shipping and to impose punishing duties on all League cargoes traveling in Manticoran bottoms had been sufficient to get the Council's attention. Cromarty had been perfectly well aware that such strong-arm tactics would generate resentment, but he'd also been convinced he had no other choice.

They'd worked... and they'd also produced even more resentment than he'd expected. Not only did many League leaders regard such a tough stance as a personal and diplomatic affront, but Cromarty's analysts had failed to appreciate quite how much money the Peeps would offer for League technology. Once combat made the Star Kingdom's edge obvious, even a financially strapped empire like the People's Republic had managed to come up with immense payments for anyone willing to sell them what they needed. For the League's arms merchants, being required to forgo that lucrative income was even more of an affront than Manticore's negotiating tactics, and from the evidence ONI had assembled, it seemed painfully apparent that someone in the League had decided to violate the embargo's restrictions after all.

Equally apparently, the leak in the embargo spurted both ways, for a source within the League Navy reported that the League's R&D types were now experimenting with their own version of the short-range FTL com system which was one of the RMN's most valuable tactical advantages. Their success was extremely limited to date, but they were headed in the right direction, and the progress they'd made, not to mention the basic concepts upon which their efforts appeared to be based, suggested that someone had been sharing data with them. It was always possible that an agent within the Allies' own military had passed the information on, but the Peeps, who'd seen the system in action and undoubtedly had sensor readings on it (not to mention the possibility that they might have captured a transmitter sufficiently intact to permit them to reverse-engineer it), were more likely suspects. And if they could, in fact, provide information to help the League develop that sort of capability, then a quid pro quo that sent more capable military hardware back to Haven in return would seem only fair.

"We've got some confirmation of technology transfers from other sources, as well," Honor told her guest quietly. "The seeking systems in Peep missiles have gotten much better in a very short period of time. We had a thirty to forty percent edge when the war began; BuWeaps estimates that our superiority's dropped to no more than ten percent at present. Fortunately, our countermeasures and general electronic warfare capability have continued to improve at a faster rate than theirs, so the effective relative increase in their missile accuracy is 'only' on the order of twenty percent, but that's still not good. Also," her eyes darkened, "we've had unconfirmed reports that the Peeps have begun deploying missile pods of their own."

"We have?" White Haven's voice was sharp. "I didn't see that mentioned in ONI's briefing documents!"

"As I say, it's unconfirmed... mainly because the ships we think may have encountered them haven't come home to tell us about them." Honor shrugged. "The Weapons Development Board was convinced of the accuracy of the reports in large part because they dovetailed so neatly with other, incremental improvements we're seeing across the board in the PN's technology. But ONI's taken the position that until we have something more definite, the existence of Peep pods has to be considered conjectural."

" 'Conjectural'!" White Haven snorted harshly. "That's going to be a lot of help when they stick their damned 'conjectural' pods up some poor damned commander's—" He broke off suddenly and cleared his throat. "I mean, the first time one of our fleet commanders encounters them. I can't believe Pat Givens is being this coy about a threat like that!"

"I know exactly what you mean, My Lord," Honor said with a lurking smile for the word he hadn't let himself use in her presence. Was it possible Grayson mores were contaminating the Manticorans assigned here? And if they were, was that such a bad thing? Then she turned more serious and leaned slightly towards him.

"As for Admiral Givens, I don't know why she's failed to make the warning official. One possibility—and I offer it only as pure conjecture on my part, from some of the things I observed while at the WDB—is that she's less of a technician than a strategist. It seems to me that she's a bit more hesitant to commit herself on hardware issues than on operational or diplomatic ones." She shrugged apologetically. "I may be out of line on that, but it seemed that way to me." She saw no reason to add that what she and Nimitz had read of Givens' emotions was a major factor in her "conjecture."

"You may well be right," White Haven said. In fact, he was certain she was, and it was another sign of her own intelligence that she'd reached that conclusion from such a relatively junior position in the RMN.

"At any rate," Honor went on, "whether they're developing pods or not, general increases in their systems efficiency are turning up in almost every area. Fortunately, our latest estimates indicate that we have a certain margin of superiority even over the more recently introduced League hardware, but it's far thinner than the one we enjoy over the Peeps. It may be enough if we continue to exploit it aggressively, especially in view of the long turnaround time on any data or equipment flow between the League and the Peeps, and BuWeaps and the WDB hope to do just that. There's also been quite a bit of discussion with BuShips about ways we might be able to shoehorn more EW capability into our hulls without cutting into weapons volume, but it looks like we're beginning to reach a point of diminishing returns in that regard. That's one reason BuWeaps has been pushing the Ghost Rider Project so hard for the last T-year."

She glanced at the earl, who nodded in understanding. "Ghost Rider" was the code name assigned to what would hopefully turn out to be a whole new generation of electronic warfare. If things worked out as planned, the needed capabilities would be built into drone bodies, providing an EW capability which could be deployed in multiple, independent platforms. Ideally, a ship would be able to put out shells of drones, relatively simple-minded and limited compared to shipboard systems, but with each operating in a different mode to give much greater overall capability than onboard systems which might be more powerful but could operate in only a single mode at any one time.

"While I was with the Board, I saw some encouraging long-range reports on Ghost Rider," Honor went on after a moment. "The only hardware actually in the production pipeline are the new decoy missiles and the stealthed missile pods, and it'll be some time before any of the other goodies reach deployment status. I think Vice Admiral Adcock is right about how much the project will enhance our capabilities—eventually—but for now, the PN has definitely cut into our advantage."

"And their building rates are going up," White Haven muttered, and she nodded once more, her eyes very serious.

"That they are, My Lord. The total number of new hulls per month has continued to decline, but that's only because we've taken so many yards away from them. The yards they have left are showing a marked increase in output. They're turning out individual new ships much more quickly, even though their overall loss of yard space means they can build fewer of them simultaneously. Again, part of that increase could result from technology transfers, but it's more likely that it stems from more effective personnel management. Their building rates went into the toilet when they started drafting Dolists into the yards, but that trend has reversed in the past year or so. I think ONI is right that the reversal indicates both that their original, effectively unskilled labor force is learning to do its job more efficiently and that popular support for the war remains high, which produces a motivated work force. Without really substantial technology imports from the League, the limitations of their physical plant should keep them from matching our construction rates, but they're going to come a lot closer than they used to be able to."