For the purposes of paragraph (b) of subsection (1) of the last foregoing section the Secretary of State may enter into contracts with others for the building by them of ships for acquisition by him, and may acquire, or take on charter, and hold ships; and with respect to any ship for the time being held by him under this section he may do all things necessary for, or incidental to, its maintenance, may cause it to be altered, modified or converted and may dispose of it in such manner as he thinks fit.

The power conferred by this section to acquire ships may be exercised by way of purchase, exchange or otherwise.