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A.—l.

13. While there is apparently a wide difference between our letters, your Excellency will perceive that I think it is possibly due to a different interpretation being put by us on a phrase. 14. My letter of the 28th April, my notes of the 18th March and the sth and 12th April bear on the subject, besides many telegrams, which at one time were almost of daily occurrence. I have, &c, G. Teyon, Bear-Admiral and Commander-in-Chief. His Excellency Lieut.-General Sir W. F. Drummond Jervois, 8.E., G.C.M.G., C.8., &c, Governor and Commander-in-Chief, New Zealand.

Gr. Sir W. Jeevois to Admiral Teyon. Sie, — Government House, Wellington, 4th June, 1885. I have the honour to acknowledge, with thanks, the receipt of your letter of the 22nd ultimo. 2. The fact of your having referred in an official communication to a suggestion made by me in a private letter to Lord Augustus Loftus that you should alter a sentence in your telegram of the 25th April, renders it necessary that I should record the circumstances which led me to make that proposal. 3. In the telegram referred to, the account you gave with reference to our conversations at Sydney and Melbourne differed in important particulars from my recollection of what took place ; and it occurred to me that when you found that I dissented from your statements and facts, and that if they were unaltered it would be necessary for me to send you a letter indicating that a decided misunderstanding between us had taken place, you would probably deem it desirable to omit any reference to those conversations. 4. Accordingly I wrote to Lord Augustus Loftus as a mutual friend, asking him to suggest to you to make such an alteration in your telegram, and enclosing at the same time my letter to you of the 30th April, which was only to be delivered in the event of your objecting to adopt the modifications. 5. I am glad to find from your reply to that letter that, though you decline to withdraw the expressions to which I took exception, you consider the misunderstanding may be attributed to your having used the term " naval defence " in a different sense to that in which I regarded it; and you will no doubt agree with me that no useful purpose can be served by prolonging a correspondence with reference to a conversation held under such circumstances. 6. In another letter of this date I have enclosed memoranda from my Ministers relating to the question of naval defence. I have, &c, Bear-Admiral Tryon, C.8., &c. Wm. F. D. Jeevois.

Enclosure 2a. Sie,— H.M.S. " Nelson," at Sydney, 28th April, 1885. With reference to your letter of the 17th April, and to the memorandum by your Ministers with which you are good enough to furnish me with a copy, it is most satisfactory to the Com-mander-in-Chief on this station to learn from your Excellency, though he did not require the assurance, for it was to him certain, that New Zealand would in the day of need put forth great efforts to place the principal ports in a state of defence. It was in consequence of my learning from your Excellency when we chanced to meet, when you were journeying to South Australia and I happened to be at Sydney—when the charts of New Zealand were before us, as well as the plans, &c, of the different ports—and subsequently at Melbourne, in my cabin, that the defences of New Zealand had progressed but little beyond the field of discussion, and that the means of arming local defensive works were very small. After much consideration, I felt it necessary to help if I could, even although it entailed the lessening of my squadron. I had no armoured wire at that time, but, eventually, by breaking up the armament of two cruisers, by obtaining two miles of cable from the New South Wales Government, by purchasing another mile for your Government, by supplying stores and appliances from my ship, by offering you all the mines I had, I was enabled to offer something substantial. I can only regret it was not in my power to do more. 2. The naval establishment here, while sufficient for the purpose for which it exists, is not calculated to supply stores for local defence such as are usually obtained from military arsenals ; but I felt it was not only due to New Zealand to show that it was not forgotten, but that it was absolutely necessary, considering the geographical position New Zealand occupies, that there should be some port made sufficiently strong to hold secure a deposit of coal for my ships, without which they could do little for New Zealand trade and commerce; besides, their movements will depend on those of others. 3. As your Excellency will realize, I much wish there were at least three such ports—none too many when we recall that the distance from Auckland to Otago is 850 miles, and that the coastline of New Zealand is computed as being near 3,000 miles. 4. I was aware of the existence of local corps, from which doubtless much can be expected. Men cannot land from boats in the presence of riflemen in pits; and lam confident history will repeat itself, if needs be, to show how much a few resolute men can do against any ordinary naval force that endeavours to throw men on shore.

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