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opinion but the means at his disposal at present would not enable him to give effect to it.

5.

It appears to me to think that the cost of policing the waters and the approaches to them fairly devolves upon Colonial Revenue, provided it can meet the charge: but that if it cannot, the duty should be undertaken by the Imperial Government, as the existence of such a state of things as I have described in the immediate neighbourhood of a British Colony, and even within British waters, reflects discredit upon the British name and rule.

6.

The cost of a Gun Boat fully manned and equipped would amount, I was informed when in England, to about £4,500 a year, including a fair supply of Coal. Whether the Colony could bear this additional burden at present or not will depend upon the decision which your Lordship will arrive at upon the question of Military Contribution as submitted in my despatches No. 30 and 35 of the 9th and 12th Ultimo.

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