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vessels would doubtless go under a neutral flag, and so avoid capture. It would be best for the Home Govern- ment to decide the amount of the contribution in the first instance, and ask for a lump sum, letting it be as small as possible. It would be easy to increase it. What is wanted is to realize the principle that the Colonies should contribute towards naval defence. If the payment were limited to a contribution towards the actual expenses of the Australian squadron, there would not be much difficulty. The Colonies would be prepared to pay if the Home Government dealt liberally with them. The contribution would be more cheerfully paid if a visible increase to the Australian squadron were made. Any such contribution should be provided for by an Act extending over several years, and should not be subject to annual votes. There would be no difficulty in apportioning the amount as between the Colonies themselves according to their trade (3318-3363).

8th June, 1880.

Sir DANIEL COOPER, Bart., Agent-General of New South Wales, and representing that Colony (3391). Defence of Sydney.-All the recommendations of Sir W. Jervois and Colonel Scratchley for the defence of Sydney are being carried out except the provision of an iron-clad, which was intended to prevent a hostile ship of war from shelling Sydney over what are called the Waverley Heights, from a distance of about 4 miles, and also to support the proposed batteries in Botany Bay. It was considered in the Colony that the fortifi- cations proposed by Sir W. Jervois were sufficient, and that it would be a wise economy to do without the ship (3399-3411).

The progress of the defences is correctly described by Sir W. Jervois in his latest Report (dated 1879). Two of the 10-inch 25-ton muzzle-loading guns were ordered in April last, and are being built by Armstrong and Co. They will probably be completed in December 1880. A suggestion to convert them into breech-loaders has not been entertained.

If the guns should not prove suitable for their intended position, they will be available for Newcastle or some other outport, and better guns can be procured in lieu of them (3396-3399).

Military matters have never been the subject of party warfare in New South Wales. The whole question of defence is thoroughly popular, and no change of feeling on the subject is likely to take place in the Colony. There is but one opinion as to the necessity of defence, and but one desire to make the defence as effective as possible; there is also a very strong feeling in favour of volunteering, and for having a permanent force as soon as the population can support it (3412– 3414, 3494). Everything is regulated by annual votes. There is no fear of the votes being refused, but a permanent Act might be opposed (3443, 3444). In- effectual efforts have been made to pass a Militia Bill (3442). The estimated cost of works is voted in a lump, and the money can be applied continuously till it is expended (3445, 3446).

Permanent Artillery.-There are three batteries of permanent artillery in an effective condition, numbering 352 of all ranks. The men are in service from year's end to year's end, and are thoroughly trained. They do not change much, and are not-as in Victoria-drafted into the police (3417-3420, 3430– 3432). A detachment is stationed at Newcastle, mainly to assist in training the volunteers (3448- 3450). The withdrawal of Imperial troops was dis- tasteful to the colonists, who would willingly have paid for the nucleus of a permanent force. It would not be wise to attempt to replace the soldiers, but assistance from the Home Government in the formation of a good colonial force would be acceptable (3496, 3497).

Volunteer Artillery. The permanent artillery are not sufficient in number to man all the batteries, and are supplemented by volunteers (3433, 3434). The volunteer artillery number 300. They drill two or three times a week in the evening, and have daylight

drills and short periods of continuous training in addi- tion. They have a liberal allowance of ammunition for practice (3435-3440). The artillery force and the infantry were under canvas last Easter, from Good Friday to the following Wednesday (3428, 3429).

Naval Brigade.—The Volunteer Naval Brigade uum- bers 283 officers and men, and is commanded by a retired naval officer, who has settled in the Colony, and become Port Master. There being no ship, the Naval Brigade exercise on land. In time of war, they would have to be employed as ordinary artillery, unless means could be found to employ them afloat (3451- 3454).

Torpedo Carps. The torpedo establishment is under the same officer, and is commanded by the official at the head of the telegraph department, who received special instruction at Chatham in 1876. There are torpedoes sufficient for the defence of Sydney and Botany Bay, but no torpedo-boats (3455-3464). The Governor can call out any or all of the Volunteers for military service in the case of actual or apprehended invasion (3441).

Imperial Officers.-In every branch of the defensive service a Queen's officer is at the head. No difficulty arises from the system, and the feeling of the Colony is in all favour of having Queen's officers in the higher ranks. Colonel Roberts, formerly in Her Majesty's service, has charge of the artillery. He is much liked, and is considered very efficient. Colonel Richardson, at the head of the whole force, has been many years the Colony, and is also very efficient. Mr. Peel Ray- mond, second in command, was born in the Colony. He was not trained in the Queen's service, but is very efficient. There is no difficulty in getting retired Queen's officers. There are no seconded officers in the Colony (3422-3428).

an

years

in

to

Inspecting Officer.-Such a measure as sending out

officer of rank every three or four thoroughly inspect the colonial military arrangements, and give advice, would be extremely well received, and would be viewed with satisfaction in all the Colonies. The cost of carrying out such a proposal would be trifling for each Colony separately, and would be made up at once. New South Wales would take her full share. The Home Government ought to take questions of this kind in hand, communi- cating privately with the Colonies through the different Governors, who would place the proposition before their respective Ministers, and thus pave the way for bringing it out publicly (3498, 3501-3503). At the time of the inspecting officer's visits two or three of the Colonies would willingly join their forces together under canvas for a week or ten days (3516-3518).

Newcastle. The Colony has accepted Sir W. Jervois' proposals for the defence of Botany Bay and Newcastle, as well as Sydney. Newcastle is practi- cally the only harbour in the Colony besides Sydney in which ships could count upon coaling in time of war (3477-3480). The arrangements for shipping coal are good, and a ship can be loaded in a very short time (3469, 8470). The depth of water at the entrance exceeds 30 feet; a breakwater is being constructed on the north side, and the harbour is being deepened. The river is not wide and scours easily (3465–3473).

Coal.-Newcastle is most important as the coalfield of the southern hemisphere. The annual output from all the mines exceeds 1,500,000 tons, of which more than 1,000,000 tons are exported, mainly to Galle Singapore, India, China, San Francisco, Callao, and other places (3465-3468, 3489-3491). A good deal of coal is being turned out 45 miles south of Sydney and at Wollongong 10 miles further, where a small barbour is being formed (3474-3476). Coal is also got at Morpeth and Maitland. Just beyond Maitland there is cannel coal, which is not found in any of the other Colonies. Newcastle coal resembles Sunderland coal, and is not so good as Welsh steam coal. The coal found south of Sydney is of a different kind. Bulli coal is an anthracite which burns dull and white, giving out great heat. It is without doubt the best. steam coal (3555). Sydney is supplied from New-

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