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Appendix No. 4.
NORTH BORNEO.
I have to acknowledge the assistance received from Mr. Treacher and the other officers of the Company with whom I came in contact.
Mr. Treacher kindly placed at the disposal of Commander Carey and myself a steam-launch, which accompanied us to Gaya and Koudat, and which enabled us to make a more thorough examina- tion of those harbours than we could otherwise have done.
I have, &c.
HONG KONG
(Signed)
HONG KONG.
No. 86.
W. CROSSMAN, Colonel, R.E.
Sir,
Colonial Office to Royal Commission on the Defence of British Possessions and Commerce Abroad.
Downing Street, January 17, 1880.
I AM directed by the Secretary of State for the Colonies to transmit to you, for the consideration of the Royal Commission on the Defence of British Possessions and Commerce Abroad, a copy of a despatch from the Governor of Hong Kong, recommending that a small armour-plated turret ship should be provided for the defence of the Colony.
I am also to inclose, for the information of the Royal Commissioners, a copy of a despatch which Sir Michael Hicks Beach has addressed to Governor Hennessy in reply.
I am, &c.
(Signed)
ROBERT G. W. HERBERT.
Inclosure 1 in No. 86.
Governor Hennessy to Sir M. Hicks Beach.
(Secret and Confidential.) Sir,
Government House, Hong Kong, November 8, 1879. IN opening the Legislative Session of 1879-80, I made some remarks on the commerce and finances of Hong Kong, in which referring to the balances to the credit of the Colony, I said: Apart from ordinary local expenditure, I think it well, on Imperial grounds, that a Crown Colony should have a substantial balance in the Treasury Chest, contingencies may arise at any moment not contemplated in the usual items of colonial expenditure."
2. The balances in question amount to about 230,000 dollars on the Special Fund Account, and 390,000 dollars being savings from current revenue for the last few years, or a total of 620,000 dollars. I have also a floating balance of about 50,000 dollars.
3. No doubt the new gaol on Stonecutter's Island, the new central school, the breakwater for junks in the typhoon season, and the Observatory recommended by Mr. De la Rue on behalf of the Royal Society, may absorb some part of those balances, though, looking to the increasing value of the site of the present gaol which stands in one of the best parts of the town of Victeria, and to the ready facilities for augmenting the ordinary revenue of the Colony, I do not despair of accomplishing those works mainly, if not, entirely from current income.
4. In other words, I have endeavoured to save from surplus revenue a few hundred thousand dollars that might, if Her Majesty's Government think proper, be devoted to the defence of the Colony.
5. I would venture, therefore, to suggest for your consideration, whether the greater part of this fund might not be properly appropriated to providing, for the defence of Hong Kong, a small armour- plated turret ship. The soundings in the harbour of Victoria, and the depth of water around the island seem to render this Colony suitable for the operation of a ship of the "Hecate" class.
6. If included in the scheme of local defence, such a ship, I presume, would not form a part of the Naval Commander-in-chief's squadron for sea-going purposes, but would, under all circumstances, be retained in the waters of the Colony.
7. In the unlikely, but still possible contingency of a war in which China might be allied with a European Power against us, I would have more confidence in such a floating battery than in some of the works now being constructed on the Chinese side of the harbour.
I have, &c.
(Signed)
J. POPE HENNESSY.
Inclosure 2 in No. 86.
(Secret and Confidential.)
Sir,
Sir M. Hicks Beach to Governor Hennessy.
Downing Street, January 17, 1880.
I HAVE the honour to acknowlege the receipt of your Secret and Confidential despatch, dated the 8th November last,* suggesting that a small armour-plated turret ship should be provided for the
*Inclosure 1.
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