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7. With regard to the financial side of the question, I may say that I have gone into it most carefully with the assistance of the Acting Deputy Superintendent, and with the Inspector of Water Police, and that I think the calculations made can be relied on.

I should perhaps explain that the reduction of one of the existing patrol steam launches will be rendered possible by the fact that the pinnaces will be able to cover their beats much better than the row boats, and that there being less of them, there will not be required the same amount of supervision.

8. I attach a letter received from the Secretary of the Dock Company from whom I made enquiries as to the probable cost of a pinnace such as I would propose to adopt. The estimate he gives you will observe is $2,750.

Taking this estimate, the 3 pinnaces would cost $8,250. Against this would be set the price realised by the launch and boats I propose should be sold. The cost would thereby be reduced to about $5,000, which would in a single year be recouped from the reduction in Establishment I have already indicated.

9. There remains only the question of the absorption of the constables. The Europeans offer no difficulty as there are 6 on probation.

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