A.—7

40

Australasia, and one-fourth with South America. South Africa, Australia, and New Zealand are therefore each interested in the maintenance of a squadron on the west coast of Africa sufficiently powerful to protect this trade. The British trade in the North Atlantic to the continent of North America amounts to upwards of £200,000,000 per annum, of which about five-sixths is with the United States. The trade of Canada in 1900 amounted to £76,582,000, of which about £31,341,000 was with the United Kingdom, £1,882,000 with other British dominions, and the remainder with foreign countries, including the United States. Canada would therefore be interested in the success of the British squadrons employed in protecting this trade along its whole route. Canada is therefore interested in the strength of the British fleet as a whole, and not only in the North American Squadron. The cost of maintaining the British squadrons on these stations, exclusive of any interest or sinking fund on the first cost of building, is £802,000 per annum. This is included in the General Naval Vote, which is borne by the United Kingdom aided by annual payments, spontaneously offered, by the Cape of Good Hope of £30,000 and by Natal of £12,000 in 'lieu of 12,000 tons of coal. The magnitude of the trade in Eastern waters is shown in the following table, which gives the total value of the exports and imports in 1900 in the States mentioned : —

Thus, less than half the trade is with the United Kingdom, and yet the cost of maintaining the British squadrons in the Eastern seas and Pacific, which are ultimately charged with the protection of the whole, is thus apportioned :— £ Great Britain ... ... ... ... ... ... 1,994,400 Commonwealth of Australia... ... ... ... ... 75,500 New Zealand ... ... ... ... ... ... 15,500 India ... ... ... ... ... ... ... 161,600 The total charge, exclusive of any interest or sinking fund on the first cost of building, amounts to £2,247,000 per annum. Admiralty, June, 1902.

APPENDIX A. British Empire.—Naval Expenditure.

With United Kingdom. Intercolonial with Commonwealth. With other British Dominions. With Foreign Countries. Total. Commonwealth of Australia New Zealand India ... £ 50,682,000 16,764,000 66,124,000 £ 27,264,000 £ 11,675,000 4,502,000 26,214,000 £ £ 25,053,000 114,574.000 2,627,000 23,893,000 49,874,000 142,212,000

Population. Naval Expenditure per Head Remarks, of Population. £ s. i. 0 15 1 Year. Naval Expenditure. 1902-3 United Kingdom ... New South Wales... Victoria ... Queensland South Australia ... Western Australia Tasmania 41,454,621 1901. 1,352,509 1,199,068 496,596 362,604 182,553 172,475 £ 31,255,500 1900. 47,831 59,401 34,796 17,594 4,732 4,970 0 0 81 0 1 0* 0 1 2 0 0 llf 0 0 6f 0 0 7* 0 0 lOf n n fiTotal Australia ... 3,765,805 169,324 0 0 lOf New Zealand 772,719 20,924 ll u of Nil Nil 0 1 li £30,000 paid annually towards expenditure of Imperial Government. 0 4 5f £12,000 paid in lieu of 12,000 tons of coal. 0 0 6* 30/6/99 Canada ... Newfoundland Cape of Good Hope (white) 5,312,500 210,000 538,000 Nil Nil 30,000 Nil Nil 0 1 li 1898 Natal ,53,688 (216,710,4831 l 1168,000) 12,000 0 4 5f 31/3/99 11ndia ... 413,747 * Ne; subsidy to . year 1900). ,rly. f Includes £10 Ldmiralty for manning ai (0,000 contribution nd maintaining H, towards H.M. i ,M. ships for naships on East Ii ral defence of Ii idies Station, and £61,000 idia. } Europeans (for