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MEMORANDUM for His Excellency the GOVERNOR.
Premier's Office, Hobart, June 24, 1886.
IN returning Admiral Tryon's Despatches of the 3rd and 18th of May, and the 6th of June last, relative to the question of Inter-Colonial Naval Defence, the Premier has the honour to inform your Excellency that this Government see no reason to alter theit views as expressed in Mr. Douglas's memorandum of the 1st March, in which they concurred with the general scheme as detailed by Admiral Tryon in his circular Despatch of 24th December 1885, differing, however, from his proposition concerning the payment of the original cost of the ships, and stating their opinion that such vessels as may be agreed upon as necessary for the formation of an Australasian Navy, in addition to Her Majesty's squadron on this station, should be provided and equipped at the cost of the Imperial Government, the Colonies each "to pay its fair share in proportion to population or the interest on this outlay together with an amount "sufficient to cover a sinking fund which would pay for replacing such vessels and for "other necessary expenditure," it being understood that any annual payments for interest on the original outlay, and for a sinking fund combined, should not amount to more than five per cent. on the first cost of the vessels, as intimated by the Premier of New South Wales in his memorandum dated 15th May.
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Believing that these views are in accord with those now entertained by the Admiral, Ministers will be prepared, if they are assented to by the other Australasian Colonies, and receive the sanction of the Imperial Government, to consider the question and bring the subject practically before Parliament.
SIR,
(Signed) J. W. AGNEW.
Enclosure No. 2 in Australian Submission of 20th July 1886.
H.M.S." Nelson," Sydney,
July 1, 1886. I HAVE the honour to acknowledge the receipt of your Excellency's letter dated 25th June 1886, enclosing a memorandum on the subject of naval defence addressed to you by your Ministers.
(2.) I have not calculated the interest on the original cost that would be required to recoup expenditure, as this method of payment was not covered by my instructions, and I therefore was unable to express a definite opinion on the proposal, and as there was some slight difference in opinion in some other respects, I could not reduce the subject within the limit of a telegram. I have forwarded the matter, and this point in particular, to their Lordships for their decision.
(3.) Again thanking your Excellency, and permit me also to thank your Ministers for the great interest they have taken in the matter,
His Excellency
SIR,
Sir Geo. Strahan, K.C.M.G.,
&c.
&c.
Governor and Commander-in-Chief,
&c.
Tasmania.
"M."
I have, &c., (Signed) G. TRYON, Rear-Admiral and Commander-
in-Chief.
Admiralty, February 25, 1887.
I AM commanded by my Lords Commissioners of the Admiralty to acquaint you that Rear-Admiral Tryon has, at the request of the Secretary of State for the Colonies, been conducting negotiations with the Governors and Premiers of the several Australian Colonies and New Zealand in regard to the creation of a naval force for the protection of the floating trade in Australasian waters.
2. The negotiations entered into by the Rear-Admiral were based on Admiralty memorandum of the 9th September 1885 (as revised by Admiralty letter of 30th April 1886), but, at the same time, he was instructed to take into consideration any proposals
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made on behalf of the Colonies, bearing in mind that the object of Her Majesty's Government was to encourage an extension of the Imperial Navy, rather than separate Colonial navies, and that no scheme or proposal should be accepted until approved by Her Majesty's Government.
3. The result of the negotiations may briefly be stated as follows:-
(a.) None of the Colonies are prepared to accept the Admiralty scheme, which was based on the assumption that the original cost of the vessels and the gross annual liability for maintaining such vessels would be paid for out of Colonial funds, and that the vessels should remain the property of the Colonies at the end of 10 years, and if the agreement was continued with new vessels that the Colonies should pay the original cost as at first.
(b.) The Colonies of New South Wales, Queensland, and Tasmania agreed that the Colonies should bear the whole cost of maintenance, and should pay 5 per cent. on the first and prime cost of the vessels which are to remain the property of the Admiralty. The agreement to last for 10 years, terminable at three years' notice, to be given at the end of the seventh or subsequent year. The Colonies of West and South Australia incline to these views.
(c.) The Colony of New Zealand proposes to contribute 20,000l. annually towards the expenses, and asked to have certain of the ships assigned to New Zealand
waters.
(d.) The Colony of Victoria proposed that the Colonies should bear the charge for
annual maintenance only.
4. Their Lordships attach the utmost importance to the negotiations entered into by your predecessor being brought if possible to a satisfactory conclusion, and desire that you should without delay make yourself thoroughly acquainted with the present position of the question, in order to be ready, on receiving telegraphic instructions to that effect, to prosecute them, on the basis of the proposals put forward by the Colonies of New South Wales, Queensland, and Tasmania.
5. At the proper time you will inform the Governor and Premier of Victoria of the above decision, and that my Lords are not prepared to acquiesce in the proposals put forward by the representatives of that Colony.
6. In considering the modified scheme, you are at liberty to propose to the repre- sentatives of the several Colonies to substitute two faster and more modern cruisers for three" Archers," which would have the effect of altering the force as proposed in the original scheme to:-
Two improved cruisers, 20 knot vessels. Two" Árchers."
Two "Rattlesnakes,”
and further that the limits of employment of these vessels should be fixed.
7. If the principle of the scheme be acquiesced in the Colonies should on their side arrange that the contributions from the individual Colonies be paid through the respective Agents-General in London to the credit of naval funds with the Paymaster-General, the dates of payment in each year being fixed. An account would be rendered by the Imperial Navy of the expenditure in connexion with the annual contribution.
8. With regard to the alternative of two improved 20 knot cruisers instead of three "Archers," I am to state that it is estimated that their cost with gun mountings and fittings would be approximately 320,000l. as compared with the cost of three of the "Archer" class under the same conditions, viz., 270,000l.
At the present moment it is not possible to give the estimate of the cost of guns, war- like stores, including torpedoes, nor the annual cost and estimated annual liability of maintaining an improved cruiser from year to year, but a detailed estimate under the same headings as that already furnished in regard to the "Archer" and "Grasshopper" will be sent to you at an early date.
9. My Lords desire me to point out that the proposed additional force entails the training of an extra number of boys for the Navy, and that the whole cost of such training, together with the prospective cost of pensions, &c., of the increased training staff, falls on naval funds, and is not covered by the proposed subsidy from the Colonies.
In addition, you should remind the Colonial Governments that my Lords have already made a great financial concession in assenting to accept a sinking fund of only per cent. for ten years upon the initial cost of the vessels, inasmuch as such a contribu- tion only covers about half the primary charge of construction and equipment.
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In dealing with the question of the establishment of the contemplated additional force, my Lords wish you to take an opportunity of impressing on the Colonial U u 2