A.—6.

No. 22. The Peemieb to the Agent-Geneeal. Be naval defences.—Bepresent to Admiralty that the Government considers New Zealand, being so distant from Australia, requires distinct treatment, and should be centre whence a section pf Imperial fleet should visit Pacific Islands. 26th May, 1885. Bobeet Stout.

No. 23. Memoeandum by the Peemiee of New South Wales. Naval Defence of the Colonies. Colonial Secretary's Office, Sydney, 3rd June, 1885. If there is one lesson more than another which recent events have taught us, it is that we - should be in a better state of preparation with regard to the defence of the whole of the Australasian Colonies, and have some recognized principles as to how far they are to be dependent upon themselves, and how far the work is to be left in the hands of the Imperial Government. When I was lately in New Zealand I had some communication with the Premier of that colony upon this subject, copy of which is appended hereto ; and since my return I have had the advantage of perusing the able minute by Admiral Tryon, and of conferring with that distinguished officer upon the subject. I entirely concur in the views set forth by him that each colony should undertake its own harbour defence, obtaining from England such officers as may be deemed necessary, either to superintend the works or to give practical instruction to volunteers or others to whom the work may be intrusted. This local defence would include torpedo-boats, and, where necessary, one or more gunboats or floating batteries for their protection. With regard to the sea-going defence, the more I think of it the more I feel convinced that the wisest and most efficient policy would be to leave it entirely in the hands and under the sole control of the Imperial Government. The objections arising from the risk of a dual control are so great as to impair the efficiency of any squadron. The admiral on whose shoulders the direct responsibility would rest might deem it absolutely essential that at a particular juncture the whole force should be at his disposal; and, although the local authorities would probably be much influenced by the admiral's expressed desire, yet if they were in any way to run counter to it by declining to permit certain vessels to go out of their own jurisdiction, disastrous consequences might ensue which it would be difficult to remedy. It appears to me, therefore, that the wisest course for these colonies to pursue is to come to some definite understanding with the Imperial Government as to the extent of the Imperial naval force which ought to be maintained in these waters, even in time of peace, or to what extent it should be increased in time of war, and offer that, in whatever degree such force shall, in its annual expenditure, exceed the force heretofore maintained, such additional expense shall be defrayed by the colonies in proportion to their population ; such payment being, of course, made directly to the Imperial Exchequer, thus maintaining the force under the direct payment of the Imperial authorities. If this course be adopted it would be a matter for consideration whether the sum stated by Lord Derby be taken as the basis of the expenditure, or whether some deduction should be made therefrom by reason of the inclusion therein of the cost of the small fleet service chiefly maintained for the purpose of regulating and controlling the Island traffic connected with the labour question. I merely mention this as an item to be considered; but I believe that the principle involved in the main question will be held to be of much more importance than the mere saving which may be effected by the exclusion of the cost of those vessels. When, in my telegram to the Premier of New Zealand, I spoke of doubling or trebling the present squadron, I did not mean that there should be an addition made to these small vessels, nor that the number of each class of other ships was necessarily to be doubled or trebled, but rather that the additional expenditure to be borne by the colonies should be expended in sending to the Australian station additional vessels of the most approved class and construction. The only point which I would urge in addition is, that the colonies thus contributing should be allowed a certain number of nominations for cadetships in the Imperial navy—not with the view of their being necessarily employed in the vessels of the Australian squadron, but rather with the view of letting the colonies feel that the navy is essentially an Imperial navy, by a gradual infiltration into its ranks of officers of colonial extraction, who had complied with the requisite tests imposed upon applicants from the Mother-country. Personally I would hope that such an arrangement might be carried on for all time; but, as the relations between the Mother-country and the colonies, especially in the question of federation, may undergo gradual changes in the course of years, it would be prudent to place a limit upon any arrangement now made, with the view of bringing it under periodical review. This limit, however, should not be less than ten years, which I am glad to see is the shortest period suggested in BearAdmiral Tryon's memorandum of the 27th March. In estimating the additional cost which is to be borne by the colonies, I feel confident that the colonies would wish that there should be taken into consideration the present values of deferred payments, pensions, or retiring allowances which the Imperial Government may be liable for to the officers and crews of such vessels at any deferred period, even although they may not have to pay them during the time of service of such vessels on the Australian station. I notice that the New Zealand Premier considers that some provision should be made for more frequent visits of ships of Her Majesty's navy than has hitherto been the case. Although it may

Nos. 7, 8, 9, and 12.

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