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Australasian as well as in Imperial interests; personally I fail to see the difference. There is but one interest, the maintenance of the Empire and the nation.
6. I quite recognise, I trust, that while many may concur that a great object such as the one at present under consideration should and ought to be effected, there will be many opinions as to how the subject should be approached, and still more as to the most proper way of obtaining a practical conclusion.
7. In this instance the difference of opinion appears to be as to which section of tho nation should bear the cost.
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8. In paragraph 4 of Mr. Gillies' memorandum is expressed the desire to " united action." He also refers to the present (in his opinion) insufficient naval squadron. On the latter point I endeavoured to prove this not to be so in my memorandum of 24th April 1886, and still further to show that in the very interests of Australasia, with which it has not only been my pleasure but my obvious duty to identify myself, that it would be unwise to increase to any considerable extent this squadron at the cost of the fleet of the nation, whose mission it is to maintain wide world interests, and maintained as it is solely at the cost of the taxpayer at home.
9. In paragraph 5 allusion is made to the Sydney conference of 1881, and a com- munication made by the Secretary of State on a resolution that was affirmed at that conference is quoted. I note that the subject does not appear to have been discussed at that conference from any general national or naval point of view, but is very briefly dealt with in a space that would occupy one page of the Blue Book, and terminates with a resolution, though it does not appear that any evidence was taken or estimate framed, nor is it clear that it was discussed so fully as to elucidate the points involved.
10. I endeavoured to show in my memorandum of 24th April 1886, that the squadron on this station has already been increased. The actual cost of the provision and main- tenance of ships is but a part after all of the entire cost. The works undertaken on Spectacle Island, on Garden Island, and at Woolloomooloo now in actual progress, largely increase not only the present and permanent expenditure on naval account, but also the resources of the station to meet a time of emergency. The increased expenditure on the defences of the depôts on the lines of trade are of great national importance. These are but some of the points on which the Imperial Government has shown practically its determination to defend the Empire in all parts of the world, and notably in Australasia, happen what may; and there is not one word that has been written or uttered to show that the Imperial Government does not recognise its responsibility, and nay, more, it has, as I have stated, practically shown its determination to bear the responsibility it has borne through all times.
11. The origin of the subject at present under consideration is within these great Colonies, and it is a proud thing to feel it is so. The Admiralty have intrusted me with the direction of negotiations to endeavour to secure united action and to express their earnest appreciation of the proffered co-operation. The final figures giving the financial state of the case, as proposed by Victoria in the memorandum 20th May 1886, practically puts forward a counter proposal to anything yet heard of, viz., that the Colonial Governments should, when the ships are on a peace footing, viz., under all ordinary and normal conditions, contribute 90,000l. a year, and that the taxpayer at home should contribute 31,3001. Nothing is said of the necessary charges involved and above referred to, and it is assumed that the deterioration of the vessels would be five per cent. per annum. It is not so necessary to refer to a time of war, for it is recognised that there would at such times be no question of money, as it is contrary to a first principle to starve a war, and the best plan is at any cost to conduct it to an end.
12. What is contemplated, in the peace footing, to be effected by 90,000l. is not quite clear. The great majority of the crews would necessarily be continuous service men, as are all other crews of Her Majesty's ships, and would be receiving pay anyhow, and if the crews of ships when placed in reserve, when a change made from & war to a peace footing, are sent home, and are maintained additional to those voted annually in London, a still further charge would be put on the shoulders of the British taxpayer; but what is desired, viz., the placing of some of the vessels in reserve, can doubtless be arranged for without difficulty. It is to be noted that 63,000l., the difference between ships when on the peace or war footing, must be mainly obtained by reduction of crews, and not to a considerable extent by the decreased cost of maintenance in other respects, as this item is much less than that first mentioned.
13. I shall be glad to know if the maintenance of the ships while in reserve should not be included in the estimate, observing that I presume it would be the desire that the com- plements should be so decreased as to leave sufficient experts on board to maintain the
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ships ready for service, say at 14 days' notice; that they should be taken to sea once a quarter to secure the efficiency of their maintenance.
14. I have endeavoured to show that the Imperial Government has at all times borne its task, that recently and quite irrespective of the present question it has largely increased its expenditure on Colonial defences up to the very ends of the earth; and I submit for the consideration of your Excelleney and your Government, whether they wish me to transmit to England a proposal which would place the charge of this addition to the Australian Squadron to so considerable an extent on the British taxpayer at home, and affect the fleet at large, as I have endeavoured to show, and whether, in their opinion, it is in the interests of Australasia to adhere, in its entirety, to the present proposal.
15. I need hardly say that I was in hopes that a concurrent opinion expressed by at least three great Colonies, which was at an earlier date endorsed, in anticipation, by Tasmania, might be expected, and whatever that opinion was it was sure to command earnest attention and a frank response, whatever might be the ultimate result.
16. I propose to delay my departure from Sydney for a short time in case I can be of service, and I shall be happy to come to Melbourne, if by so doing it is considered I can assist in obtaining a solution of the question, or if it will promote that united action which is so much desired.
17. I enclose an abstract of the Naval Estimates for 1886-87, which will give some idea of the distribution of naval expenditure and of charges incidental to the possession of a navy, which may be of interest to your Ministers.
18. This letter does not refer to the points alluded to in my previous letter as to "manning," to which also I wait a reply.
His Excellency Sir Henry Loch, K.C.B.,
&c.
&c.
&c.
I have, &c.
(Signed) G. TRYON, Rear-Admiral and Commander-in-Chief.
Governor and Commander-in-Chief of Victoria.
"J."
COLONIAL NAVAL DEFENCE SCHEME.-EXPLANATION of MEMORANDUM by PREMIER of VICTORIA of May 20, 1886.
SIR,
H.M.S"Nelson," at Sydney,
June 5, 1886.
WITH reference to my letter, of the 26th ultimo, in which I enclosed copies of a letter and memorandum by Mr. Gillies, Premier of Victoria, be pleased to inform their Lordships that Sir Henry Loch informs me, under date 1st June, that "Mr. Gillies' memorandum of 20th May amounts to this: that he and his colleagues "are prepared to recommend to Parliament to share with other Colonies the whole cost, inclusive of every charge whatsoever, for the maintenance of the proposed naval " additions in these seas, whether they are for vessels actually in commission or for "their maintenance while placed in reserve, the Imperial Government providing the "vessels and retaining proprietorship thereof."
2. The above explains the points which I referred to in the postscript of my letter of 26th May 1886. It shows the Government of Victoria proposes to bear the cost of the vessels when in reserve, a point omitted in previous papers, and it confirms the second paragraph of my letter of 30th May last, as correctly representing the views of the Colonies named, with the addition that Victoria does not, in so many words, stipulate that the crews shall be a distinct addition to the numbers voted in London, while all other Colonies have either expressed themselves so to me, or distinctly mentioned it in memoranda.
The Secretary of the Admiralty.
I have, &c. (Signed)
G. TRYON,
Rear-Admiral.
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