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Possessions and Commerce Abroad, together with copies of your despatches No. 421 of the 8th December, 1879, No. 343 of the 31st October, and No. 240 of the 8th September, having

reference to the subject.

copy of your despatch under acknowledgment has also been transmitted] to Mr. Broome for his information with reference to his letter of the 10th January,t of which I inclose a copy, and of which a copy has also been transmitted to the Commission.

I have, &c.

(Signed) M. E. HICKS BEACH.

No. 152.

Governor Lord A. Loftus to the Right Hon. Sir Michael Hicks Beach, Bart.— (Received March 3.) (Telegraphic.)

Sydney, March 3, 1880. SIR W.JERVOIS has been proposed by the Chief Secretary of South Australia as Delegate for all the Colonies to the Defence Commission. To that selection Sir Henry Parkes replies that he entertains strong objections. Matters affecting inter-colonial relationship and Australian policy cannot be separated from military question; neither is it consistent with the forms of government of Australian Colonies, or likely that the Colonial Parliaments would agree, that the Colonies should be committed to responsibilities by an officer in the Imperial service.

Sir,

No. 153.

Colonial Office to G. F. Smith, Esq.

Downing Street, March 4, 1880.

I AM directed by the Secretary of State for the Colonies to acknowledge the receipt of your letter of the 27th ultimot, stating that the gentlemen whom you represent would adopt a point at or near Halifax, and construct a line thence to Bermuda, if Her Majesty's Government would be willing to contribute a subsidy of 10,0001. a-year for twenty

years.

In reply, I am to state that the subsidy asked appears to Sir Michael Hicks Beach to be higher than he would be justified in recommending to Her Majesty's Government for the work proposed to be done, and that he could not in any event entertain a proposal of the kind unless first thoroughly satisfied as to the competency of those who might make it to carry the project into effect.

Sir,

I am, &c.

(Signed)

ROBERT G. W. HERBERT.

No. 154.

War Office to Colonial Office.

War Office, March 4, 1880.

I AM directed by Secretary Colonel Stanley to acknowledge the receipt of your letter of the 28th ultimo,§ transmitting printed copies of a despatch from the Governor of New- foundland, inclosing a Report by Lieutenant Morgan, Royal Marine Light Infantry, on the defence of the Colony.

"

In asking you to convey to the Secretary of State for the Colonies Colonel Stanley's thanks for these valuable papers, 1 am to add a request that the three maps mentioned by Lieutenant Morgan, as accompanying his Report, may also be transmitted, as they are required to illustrate its contents. Should Sir Michael Hicks Beach wish to retain them at the Colonial Office, they can be reproduced in the Intelligence Department of this Office, and returned.

I have, &c.

(Signed)

H. G. DEEDES.

Inclosures 4, 3 and 2 in No. 150.

† No. 92.

‡ No. 143.

§ No. 144.

Sir,

141

No. 155.

G. F. Smith, Esq., to Colonial Office.

I BEG to acknowledge your letter of yesterday's date* on the subject of telegraphic

15, Golden Square, March 5, 1880. communication with the Bermudas, in reply to mine of the 27th ultimo.t

I have consulted Sir James Carmichael on the subject, not having had the opportunity of speaking to Mr. Puleston.

Under the direction of the former gentleman, I beg to submit in reply the following considerations :-

1. Notwithstanding the difficulties incident to the neighbourhood of the Bermudas, the cost of making and laying the cable, including stations and engineering expenses, is taken at 1201. per mile, or say 105,000l.

2. The subsidy asked for proceeds upon the assumption of repayment, with 7 per cent. interest, in 20 years; 6 per cent. would take about 18 years; 5 per cent. 16 years. The uncertainty of the continuance of the subsidy is an element which introduces difficulty into the calculation.

If the principle of repayment of cost of construction by instalments, with moderate interest, be accepted, there will not be any difficulty in coming to an understanding.

The price above named will contrast favourably with the prices hitherto submitted to Her Majesty's Government.

The commercial reasons which induce the parties whom I represent to offer to under- take the maintenance and repair of an unremunerative line is the prospect of its extension to the West Indies, and they rely upon this permission being granted to them.

If such parties be encouraged to alter one of their termini to Nova Scotia, the Secretary

of State shall be fully satisfied as to their competency to fulfil their engagements,

I gather from the letter with which I have been favoured that the question is now reduced to one of figures, and if I were allowed an interview with or without Sir S. Canning or Mr. Sabine, I entertain no doubt that a satisfactory arrangement would be arrived at.

GEO. F. SMITH.

I have, &c.

(Signed)

No. 156.

Circular (Ng. 1) to all the Australasian Colonies except Western Australia and Fiji. (Secret.)

Downing Street, March 6, 1880.

Sir,

I HAVE the honour to transmit to you a copy of the letter from the Royal Com- mission on the Defence of British Possessions and Commerce Abroad, upon which my telegram of the 25th February§ was founded, specifying the nature of the information upon which the Royal Commissioners desire to be furnished with the views which your Ministers may entertain in connection with the question of the defence of the Colony

your Government.

under

(Secret.) Sir,

I have, &c.

(Signed) M. E. HICKS BEACH.

No. 157.

Circular to Canada and the Cape of Good Hope.

I HAVE the honour to transmit to you a copy of a letters from the Royal Commis-

Downing Street, March 6, 1880. sion on the Defence of British Possessions and Commerce Abroad, stating that they hope to arrive at a stage of their inquiry by the beginning of June next, when they will desire to hear any opinions which your Government may entertain on the important matters referred to them by Her Majesty, and specifying the heads of information with which they desire to be furnished.

2. You will observe that your Government is invited, if it desires, to depute a

• No. 153.

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† No. 143.

↑ No. 185.

§ No. 142. 2 P

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