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8. It was deemed necessary, in order to secure the same state of efficiency as exists in every other part of Her Majesty's Navy, that the ships should be officered and manned by the Admiralty, in order to secure to the officers and crews the same advantages of promotion, rank, and service as they would enjoy if serving in

any other part of the world.

9. In the statement which I made at the meeting, and which I have copied into this minute for his Excellency's information, I have stated the sum which the Colonies would have to provide, according to the recommendations of the Admiral contained in his circular of 24th December 1885.

10. By a revised estimate, submitted by the Admiral, the original cost of the annual maintenance would be altered. The details of this were not in possession of the meeting,

and will not be received here for some time, but substantially there will be a difference in the class of ships known as "Archers," on the five ships, in all 6,2801. in excess of that estimate, and on the torpedo vessels of 13,1427. less than that estimate.

11. As it is desirable that in a memorandum of this kind, which practically embodies the terms of the contract upon which the Governinent is prepared to enter with the Imperial Government on this subject, to state with as much accuracy as is obtainable, the estimated cost to be incurred by the Colonies, I now proceed to furnish to his Excellency a statement of the figures drawn up at the meeting.

The entire cost of the annual maintenance would be

The exchange of crews necessary to keep the ships in the highest

state of efficiency would involve an annual charge of

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£

149,338

3,300

152,638

An allowance of (say) 5 per cent. on the capital cost of construc-

tion and to provide for depreciation, &c.

31,295

183,933

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As a general principle, we come to this in each case of war:-Wherever your enemy is, you must get as near him as possible if you would frustrate his designs; and the further you are from him the less likely you are to meet him, and the less abic you are to hinder him.

"If the above accepted, it will follow that any force that is localised, viz., one whose action is limited designedly for special purposes and to special seas, while it may be of the greatest value and its existence but a sequence to the general principles above sketched, it does not fall into place side by side with the main force, but is rather an adjunct to it, and a very important and necessary adjunct, as I shall now endeavour to show for on my so doing depends whether, from a wide and national point of view, we are right in localising a naval sea-going force at all."

16. I think I have now sufficiently informed his Excellency of the views entertained by this Government, and of the support which it feels itself entitled to expect at the hands of the other Australasian Colonies whose opinions have been expressed on this subject.

17. The early submission of the whole of the papers in connexion with this matter to the Imperial Government, with an expression of their substantial agreement with the course proposed to be taken, would enable his Excellency's advisers to take, without delay, the opinion of Parliament on a question so momentous, and with the main features of which there appears, happily, to exist a general agreement between the leading Colonies of Australasia. I may be permitted, on the part of his Excellency's Government, to express to his Excellency the very deep sense of obligation under which I feel the whole of the Australasian Colonies have been placed, by the untiring exertions of his Excellency the Admiral to place before them the fullest particulars which he could furnish, both as to the means of effecting the defence of the Colonics and in bringing about a common understanding on a subject of such deep and universal interest.

PUBLIC RECORD OFFICE

Reference :-

C.O. 885

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

5PUBLIC RECORD OFFICE, LONDON

Making in all

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I would wish his Excellency distinctly to understand that these figures are not to be considered as absolutely fixed, but are the nearest approach to an accurate statement of the anticipated liabilities of the Colonies, by means of the contemplated arrangement which can under the circumstances be obtained.

12. This sum of 183,933/. would maintain the entire naval force on a war footing; but if it was deemed expedient during times of peace to have only three vessels of the "Archer class in commission, a reduction on this expenditure would be effected by the sum of (say) 30,5707., leaving the entire probable annual cost at the sum of 153,650/.

13. Assuming the entire population of the Australasian Colonies to be 3,300,000, and the entire population of this Colony to be one million, the proportion of this expendi- ture on a peace footing to be borne by this Colony would amount to about 50,000. In other words, while the cost of this increased naval defence for this Colony would be only (say) is. per annum per head of the population of this country, the cost of the annual maintenance of the Imperial Navy to the British taxpayer is estimated to be about 7s. 6d, per head.

14. It was distinctly understood that this arrangement was to be entirely one in addition to the ordinary defence provided for the Australasian Colonies by the Imperial Government; in other words, that it was not to occasion in any way any diminution of the defence provided for in the annual vote for Her Majesty's Navy.

as to

15. With regard to that portion of the statement made by me to the meeting, the exclusive employment within Australasian waters, in time of war, of the vessels obtained by the Colonies, it was deemed desirable that their use and employment should be absolutely in the hands of the Naval Commander-in-Chief of the station; for it was pointed out that great injury might be inflicted upon the commerce of the Colonies by vessels operating outside Australasian waters, and that such vessels might harass our cominerce if the force provided by the Colonies were limited in its operations in any way whatever.

In the last memorandum on "Colonial Naval Defences," by the Admiral, presented to the meeting, and dated the 24th April, the following para- graphs seem to me to justify the inexpediency of limiting the movements of the force in any manner whatever :—

15th May 1886.

Enclosure No. 2 in Australian Letter of May 30, 1886.

NAVAL DEFEnces.

Memorandum.

Premier.

Premier's Office, Melbourne, May 20, 1886.

That the naval squadron on the Australian Station should be increased. The following proposals of his Excellency Rear-Admiral Tryon are approved : The sub-paragraphs named hereunder of paragraph 5 in circular letter from Admiral to Governors, dated Auckland, 24th December 1885-(a), (b), (c), (d), (ƒ), (g), (h) omitting wherever they occur the words "at the cost of the Colonies." The proposals in paragraph 7, as to the nature and number of vessels which should be

provided. The proposal in the last sub-paragraph of paragraph 7.

The proposals in paragraph 8, omitting the word "Colonies" at the end of the

paragraph, and inserting the words " Imperial Government" in lieu thereof.

In addition to these proposals it is submitted-

That the vessels agreed upon should be provided, furnished, and manned by the

Imperial Government at its cost.

That the Colonies pay all costs of maintenance during the term of the agreement; maintenance to include such items as are mentioned in paragraph 7, and included in revised estimate in telegram from Admiralty of 25th April 1886.

The proportional payments by each Colony to be based on population.

A special Appropriation Act to be passed in each Colony to provide for its annual

contribution.

Attached will be found, for greater convenience, the proposals as altered and added to.

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