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These figures are Imperial rates; the rates of pay of the reservists in Australia cannot at present be determined, but the total would probably approximate 100,000l., or about 53d. per head of population. If the number of drill ships is less than five, a reduction of 14,500l. per ship would follow.

In order that officers born in Australia and New Zealand should be able to rise to the highest posts in the Royal Navy, they must not only be borne on the Imperial List, but must be entered and trained as other officers, and these ships would therefore be officered by officers on the regular List of the Navy; the presence in the Navy of a due proportion of officers born in the -British dominions beyond the sen being onsured by a sufficient number of

nominations.

In addition to the ships above namel, the Imperial Government would maintain in the Eastern Seas à force which would vary with the strength of the Foreign Squadrons in those waters, and a portion of which would either be permanently kept on the Australia Station or would visit it from 'time to time.

It would be understood that any ship manned by Australians and New Zealanders would be liable to service in any part of the Eastern Seas, but if "temporarily removed from Australian waters in time of peace would be replaced by a corresponding ship from the China or East Indies Station.

While the Admiralty would undertake not to remove without replacement any of the ships, provided under the special agreement with the Common- wealth and New Zealand, from the Australia Station in time of peace without the consent of those governments, it must be understood that they would be quite free to utilise them during a maritime war wherever in the Eastern Seas the most effective blow could be struck against the forces of the enemy.

The proposed scheme might come into force with the "Katoomba class as soon as arrangements can be made. The "Karrakattas" being useless on tho Station should return to England.

In the event of the proposal to man a certain number of these ships by Australians and New Zealanders being accepted, the conditions under which they should be entered for service in a ship in commission would have to be hereafter decided, and also the regulations for the reserve.

It may be pointed out that the Admiralty are endeavouring to make Australasia a base of coal and supplies for the Squadrons in China and the Indian Ocean; the coal for the China Squadron is now obtained from Australia and New Zealand, and also a large quantity of provisions for the China and East Indies Stations, and it is further proposed that a portion of the coal for the East Indies Station should also come from Australia and New Zealand.

*

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APPENDIX A.

COMPARISON OF PRESENT AND PROPOSED STRENGTH AND COST OF THE PART OF THE SQUADRON IN AUSTRALASIAN WATERS, WHICH IS PAID FOR BY AUSTRALIA AND NEW ZEALAND.

PRESENT SQUADRON.

In Commission.

3 Cruisers

1 Gunboat

In Reserve.

2 Cruisers

1 Gunboat

PRESENT.

COMPLEMENTS.

In Commission.

3 Cruisers, 3rd cl. 656 1 Gunboat

·

93

SUGGESTED Squadron.

In Commission,

3 2nd-class Cruisers,

about 5,600 tons.

In Reserve.

2 2nd-class Cruisers, about 5,600 tons.

SUGGESTED.

In Commission.

3 Cruisers, 2nd-class 1,515

Admiralty,

June 1902.

749

It will be seen that the complements will be increased by 786:

}

COST.

The charge for building and completing for sea the ships provided by Australia and New Zealand may be taken as :----

PRESENT SHIPS.

£849,764

SUGGESTED SHIPS.

£2,500,000

The average annual charge for maintenance may be taken as :--

3 in commission, Imperial Rate 192,000

£118,500

2 in reserve

Total

Kk 2

50,000

£242,000

PUBLIC RECORD OFFICE

Reference -

C.O. 885

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TOPage 691

222

PUBLIC RECORD OFFICE

Reference :-

C.O. 885

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APPENDIX V. (2).

1900.

New Zealand.

Joint Defence (Secret) Committee

(Reports of the).

ORDERS OF REFERENCE.

Extract from the Journals of the Legislative Council.

Thursday the 26th day of July 1900.

Ordered, "That Standing Order No. 162 be suspended, and that a Secret Committee be appointed, consisting of 14 members, to whom shall be referred all matters affecting defence, with power to confer and sit together with any similar Committee that may be appointed by the House of Representatives, and to agree to a joint or separate report; the Committee to have power to call for persons, papers, and records; five to form a quorum: to consist of the Hor. Colonel Baillie, the Hon. Lieut.-Colonel Bonar, the Hon. Lieut.-Colonel' Feldwick, the Hon. Surgeon-General Grace, C.M.G., the Hon. Major Harris, the Hon. Honorary Lieutenant Jennings, the Hon. Captain- Commandant Johnston. the Hon. Mr. T. Kelly, the Hon. Captain Kenny, the Hon. Lieut. Colonel Pitt, the Hon. Mr. A. L. Smith, the Hon. Mr. L. Walker, the lion. Major-General Sir G. S. Whitmore, K.C.M.G., and the Mover." (Hon. Mr. W. C. Walker.)

Extracts from the Journals of the House of Representatives.

Tuesday the 24th day of July 1900.

Ordered, "That a Secret Committee be appointed, consisting of 15 members, to whom shall be referred all matters affecting defence, with power to confer and sit together with any similar Committee which may be appointed by the Legislative Council, and to agree to a joint or separate report; the Committee to have power to call for persons, papers, and recórda; five to be a quorum, the Committee to consist of Lieutenant-Commanding J. Allen, Captain Carncross, Mr. Hardy, Mr. McNab, Captain Napier, Captain Palmer, Lieutenant Rhodes, Captain Russell, the Hon. Major Steward, Captain Symes. Captain Willis, Captain Hon. J. G. Ward, Mr. Lethbridge, Captain Stevens, and the Mover."-(Right Hon, R. J. Seddon.)

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Friday the 20th day of July 1900.

Ordered, That Paper No. 101n, Statement by the Right Hon. R. J. Seddon, Premier and Minister of Defence, respecting Harbour Defences, Colonial Defence Forces, Imperial Reserve, Cadet Corps, Rifle Clubs, and other Matters connected with the Defences of the Colony, be referred to the Defence Committee."--(Right Hon. R. J. Seddon.)

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Tuesday the 14th day of August 1900.

Ordered, “That Paper No. 138H, Report on the Defence Forces of New Zealand, by Colonel A. P. Penton, R.A., Commander of the Forces, and Paper No. 139, Copy Correspondence between the Right 11on. the Premier, His Excellency the Governor, and His Excellency the Admiral, in reference to the Defence Scheme propounded by the Right Hon. the Premier, be referred to the Defence Committee." (Right llon. R. J. Seddon.).

Tuesday the 28th day of August 1900.

Ordered, "That Paper No. 161, Letter from Major-General Hutton, commanding 1st Mounted Rifle Brigade, South Africa, with reference to the New Zealand contingents, be referred to the Defence Committee."-(Right Hon. R. J. Seddon.)

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INTERIM REPORT.

The Joint Defence (Secret) Committee have the honour to report as follows:- "That the Government be recommended to accept the services of all the Volunteer corps offering; which, with those now accepted, will bring up the Volunteer Force of the Colony approximately to eighteen thousand (18,000).'

16th August 1900.

ALBERT PITT, Lieut.-Colonel,

REPORT.

Chairman.

The Joint Defence (Secret) Committee of both Houses of Parliament, to whom was referred all inatters affecting defence, with power to call for person, papers, and records, and to whom was referred the statement made in the House of Representa- tives on the 20th July 1900, by the Right Hon. R. J. Seddon, Premier and Minister of Defence, respecting harbour defences, Colonial Defence Forces, Imperial Reserve, cadet corps, rifle clubs, and other matters connected with the defences of the colony, have the honour to report that they have carefully considered the said statement, and have taken the evidence of the following witnesses thereon:-

His Excellency the Admiral commanding the Australian Naval Station (by written

questions submitted and answered in writing).

The Right Hon. R. J. Seddon, Premier and Defence Minister. Colonel A. P. Penton, Commander of the Forces.

Major Sir Arthur Douglas. Bart., Under-Secretary for Defence.

Mr. A. U. Whitney, manager at Auckland and attorney for the Colonial Ammunition

Company (Limited).

Captain John Falconer, in charge of No. 2 Service Company at Wellington. Mr. J. H. Witheford, M.H.R., Chairman, Auckland Harbour Board. Surgeon-General the Hon. M. S. Grace, C.M G.

Captain W. J. Napier, M.H.R., Captain, Devonport Coast Guard Artillery

Volunteers.

Lieut.-Colonel White, commanding No. 1 Battalion Auckland Infantry. Captain Coyle, No. 2 Service Company, Auckland.

The Committee have had before them a number of important documents and records relative to Colonial Defence, and after consideration of the evidence before them have the honour to report as follows:-

FORTIFICATIONS AND MINE FIELDS.

1. Your Committee are of opinion that it is necessary that the fortifications and harbour defences of the colony should be perfected, extended, and strengthened.

2. Your Committee, having regard to the fact of Auckland possessing the Calliope Dock, and having regard also to the fact of arrangements existing between the Admiralty authorities and the Auckland Harbour Board in reference to that dock for the procurement and maintenance of the necessary machinery and equipment of the dock, consider that it is of the first importance that the defences of the port of Auckland, both as regards fortifications, submarine mines, and the necessary Permanent and Volunteer Forces, should be completed without delay,

3. Your Committee are of opinion that the necessary quick-firing guns of the latest pattern and requisite calibre should be obtained for use at Auckland."

4. Your Committee consider that a suficient stock of Westport coal should be always kept at Auckland for the use of Her Majesty's warships, the supply of coal to be maintained by being replenished from time to time, proper financial arrangements being made between the Imperial and New Zealand Governments in reference to such stock of coal.

5. Your Committee are of opinion that additional fortifications, guns of more modern types, and quick-firing guns are required for the complete fortification of Wellington. The mine-fields at Wellington require strengthening, and additional men to man and support the forts are needed.

6. Your Committee are further of opinion that the fortifications for the defence of Lyttelton require to be altered as regards the position of the guns (the guns at Ripa Island should be removed to the Heads), and by the introduction of the necessary L 13

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