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Panamá Canal.-There is no reason to doubt that the Panamá Canal will be completed in about eight years. There is nothing to prevent its being done. Lesseps has got over his difficulties with the United States, and he has got his money; 12 millions were subscribed in France alone. About 12 millions more will be required to complete the work (5288-5291). The work involves cutting through 25 kilom, of hard rock. The height of the highest point is 80 metres, and the depth of the canal will be 9 metres, so the total thickness to be cut through will be 89 metres at one place. The width of the canal will be only 50 metres at the surface through the rock (5292, 5293). Though the depth is greater than that of the Suez Canal, it will not take larger ships, as there is the danger of touching the rocky bottom, which cannot be made quite smooth. Ships will make the outward voyage to Australia through the Panamá Canal, and come home by Suez. The prevailing winds favour this course. Thus the size of the ships will be limited by the depth of the Suez Canal (5294, 5295).

It would be much easier to seize and hold the Panamá Canal than the Suez Canal. In the event of war with Russia it would be invaluable to us. We are notoriously weak in the Pacific, and if we took possession of the canal we should save two months in time when strengthening our forces there. By using great precautions, it would be possible to get a much larger ship through than through the Suez Canal (5297-5299).

Major-General T. I. GALLWEY, Inspector-General of Fortifications.

Existing Defences at the Cape.--Little money has been spent on the works at the Cape. The batteries were erected in a hurry, and their armament consists of only 6-ton guns.

Simon's Bay. Of the three batteries constructed at Simon's Bay, none have proper powder magazines or bomb-proof cover. To make the defences adequate, much heavier guns, such as the 10-4-inch guns of 25 tons, and thicker parapets, would be required. The present works would have to be taken away, and larger and more permanent works erected, with more powerful guns. The existing works would not even defend Simon's Bay against a hostile landing, and if a heavier armament was supplied, the works would have to be considerably altered (5305–5316, 5320). If Simon's Bay were made the naval estab- lishment at the Cape, it would be necessary, in addi- tion, to provide for the land defence of the place, by means of permanent detached works (5317, 5318). The War Office have little land at Simon's Bay, but the Colonial Government offered, in 1876, to give any land required for military purposes (5323-5325). If it were decided to make the naval establishment at Table Bay, it would still be necessary to erect sea batteries armed with 10-4-inch guns in order to deny Simon's Bay to an enemy (5326, 5327). Simon's Bay would require as strong a defence as the principal place, because it would be liable to attack by the same class of ships (5828).

Table Bay-The War Department have a consider able acreage of land in Table Bay that could be utilized for naval and military purposes, particularly at Amsterdam Battery, adjoining the proposed exten- sion of the breakwater and docks, where there are 21 acres. The magazine, distant about 400 yards, is a separate property. We have land at Moville, and about the Castle, Fort Knokke, and Craig's Tower. At the military hospital we have 47 acres. We do not propose any works at Amsterdam, with the exception of two medium guns, because it is a bad situation for defence. That land might be given up, exchanged, or, if need be, utilized as a site for a naval establish- ment. There is a good water frontage. An expendi- ture of 500%. has been authorized to make the casemates habitable for troops. The accommodation -will be temporary, and of a very inferior class (5331-

5340).

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Land Defences for Table Bay.—There would be no difficulty in closing the gorges or rear of the sea batteries at Table Bay (5343-5345). In addition to the sea defences, works would be required to defend the place on the land side. The ground is difficult to occupy on account of the great height of the Table Mountain (5346, 5347). It would be necessary to acquire land for those works from the Colonial Govern- ment. Probably the land would not be valuable, in consequence of the distance of the works from the town. One work would be at the Observatory, just beyond the railway junction. It commands all the roads and railways, and would be the left flank of the line of land defence. A chain of forts or fortified posts would be constructed from thence right round the town, and probably passing through the kloof or gorge between Table Mountain and Lion Mountain, closing again on the sea (5348-5351). Three or four works may be required, costing altogether about 60,0007 (5352). These forts would defend the town from external attack, but would be too far off to control it. It is not usual to provide for such a con- tingency. The forts would prevent the population of the country from coming into the town, and, as ordinary inclosed works, would be sufficiently secure against any rise of the population in rear (5354–5358). For the garrisons of these forts, about 1,500 regular troops, with an equal number of local levies, would suffice (5361, 5362).

Battery at Three Anchor Bay. The War Office pro- pose, as part of the defences of Table Bay, an addi- tional battery at Three Anchor Bay, for the purpose of denying the water to ships that might otherwise bombard the establishment in reverse.

Robben Island.—A battery on Robben Island would have no effect on Table Bay. It is 10,000 yards off (5369).

Breakwater Fort.-The objection to placing guns at the end of the breakwater is that the breakwater will take a long time to build, and the fort cannot be built until the breakwater is finished. Special foun- dations would also be required (5375, 5376).

May 31, 1881. Colonel Charles PASLEY, C.B., R.E., Director of Works at the Admiralty.

Naval Yard at Simon's Bay. It is essential, in the interest of the Naval Service, to keep up a naval establishment at Simon's Bay (5418). The anchorage there is excellent, and the establishment is very useful to the navy (5381). About 45,0007. has been spent on the buildings within the last five or six years (5382). The establishment is sufficient for the purposes for which it has hitherto been used, in- cluding such repairs as can be done without docking a ship. If a ship was seriously damaged, and had to be largely repaired, far better appliances would be wanted (5383, 5384, 5395).

Ships are docked on foreign stations more fre- quently for the purpose of cleaning their bottoms than for other reasons. The work can be done by means of divers, but it is more satisfactory and expeditious to do it in dry dock (5385).

Harbour Works at Cape Town.-The dock at Cape Town will practically serve the purposes of Her Majesty's ships (5386, 5387). As at Hong Kong, the fact of the dock being at some little distance from the naval yard is not a great inconvenience (5405-5407). The dock is a private enterprise. Negotiations for the payment by the Admiralty of a subsidy towards the expense of construction failed, and the whole cost has been borne by the Harbour Board (5425). Though Her Majesty's ships, consequently, have no prior claim upon the dock, the existence of a dock at the Cape capable of accommodating them is a great advantage (5424). The dock is sufficiently large for practical purposes. It will easily take in ships of the classes of the "Swiftsure" and " Northampton," which have displacements of 6,000 or 7,000 tons. These are the kind of ships that are most likely to be

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