HMS Hood would transform Australian naval capability

Would transferring HMS Hood to Australia create political or capability problems for the Royal Australian Navy?

Australia would see Hood as a major increase in capability, though modernization and alterations would probably form part of the transfer agreement.

Australia would have little reason to resent receiving Hood as a replacement for its earlier capital ship. The battlecruiser would represent a substantial improvement in national naval power. Australia would probably insist on modernization or alterations before accepting the ship. That refit becomes a practical condition of the broader policy of moving older British capital ships into dominion service.