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St. Helena.

9. St. Helena has many advantages over Ascension, It is larger, has a cooler temperature, more vegetation, and is also a Colony. It is about 104 miles long and 7 miles broad, and is equi- distant between Sierra Leone and the Cape of Good Hope, about 1,700 miles from each. The principal landing-place is on the south or leeward side in James' Bay, where is situated the only town in the island. There is no harbour, but only a wharf wall and landing-place, off which vessels anchor in an open roadstead. The defences of the island have received much attention at various periods. When the Emperor Napoleon was confined there, batteries were constructed at almost every landing-place, and the principal landings were further protected by continuous entrenchments. Of late years a sum of 30,0007, has been expended on the fortifications, which, however, are still far from complete.

10. As from the formation of the coast, ships in the roadstead can never be fully protected against long range artillery fire, it is not advisable to encourage them to make use of St. Helena as a regular coaling station, nor indeed would a regular coaling station be necessary if one were established at Sierra Leone; but considering the distance, 3,300 miles, between Sierra Leone and the Cape of Good Hope, we think that it would be of advantage both to your Majesty's navy and to commercial ships if a limited supply of coals were kept at St. Helena. Considerable assistance may be looked for from a local militia, which may be raised under the Ordinance of 1874.

11. We think it unnecessary to fortify and garrison both St. Helena and Ascension.

In point of shelter there is little difference between the two; but as a commercial coaling station St. Helena would appear to be the more convenient. The works necessary to defend the coal stores already exist, and are capable of being completed at small cost; and assistance towards the necessary garrison may be looked for in the Colony. At Ascension there are neither works for defending the coal supply, nor population from which to draw a part of the garrison, and the only institution of importance is the Sanitarium, which might be as conveniently placed at St. Helena. In these circumstances we are of opinion that it would be desirable to store the supply of coal necessary for the fleet at St. Helena, and to remove thither the Admiralty establishment now maintained at Ascension, leaving at the latter place only a few men to take charge of the water tanks. The cost of removal would doubtless be considerable, but the alternative is a large and continuous expenditure at Ascension, where, so long as the coal and stores remain, adequate defences are indispensable.

The Cape of Good Hope.

12. We have already dealt with the defences of the Cape of Good Hope in our first Report, but we desire to refer to the Report of the local Committee which we have since received. Though differing in points of detail, the Committee concur generally in the recommendations of the War Office, and we see no reason to modify the opinions expressed in our Report on the defence of the Cape Peninsula.

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on the Danakil coast; and the Peninsula of Sheikh Saïd, opposite Perim; but as yet no works have been undertaken at any of these places. The chief French station is Réunion, where, although there are no natural harbours, this want is being supplied by artificial harbour works, estimated to cost £3,000,000. A large garrison is maintained in the island.

Mauritius.

17. Mauritius is only 115 miles from Réunion, and under any circumstances Great Britain must maintain a firm hold of this important position. The Colony has a trade of the annual value of £6,000,000, and a public revenue exceeding £700,000 annually. In the contingency of the Suez Canal being closed, Mauritius may be of great value as a port of call, being on the direct line between the Cape of Good Hope and Ceylon, and dividing the distance (4,440) miles) between them in nearly equal portions. In the winter of 1879-80 five transports, carrying troops from South Africa to India, stopped there within the space of four months to procure coal and fresh provisions.

18. Port Louis is a safe and commodious harbour, with three graving docks. The present condition of the defences is very imperfect, and no defences exist in other parts of the island. We are of opinion that measures should be taken, without loss of time, to place Port Louis in a better state of defence.

19. We are informed that a commencement has been made in the organization of a volunteer force, to which we think every encouragement should be given. With regard to the maintenance of the garrison, it was decided in 1869 that Mauritius should be required to pay a capitation on the actual number of Imperial troops serving in the island, at the rate of £70 per annum for cach artillery or engineer officer and soldier, and £40 per annum for each infantry officer and soldier ; the total amount, however, in no case to exceed £45,000. Under this arrangement, the military contribution paid in the year 1879 amounted to £33,694.

20. The only regular communication with Mauritius is by French ships, subsidized by the Government of the island; so that the British Government may find itself, on the outbreak of war, deprived of all direct communication with the Colony. We think that a regular postal communication should be established by British vessels.

21. The Colonial Government have urged the extension of the telegraph to Mauritius, and have pledged themselves to contribute about £8,000 for twenty years. The present Governor, Sir George Bowen, does not doubt that this sum might be increased to £10,000. We are informed that the Eastern Telegraph Company are prepared to construct and work a line from Zanzibar. where it would join the African line, to Mauritius and Réunion for a subsidy of £25,000 a year for twenty years. It is believed that the French Government would contribute £5,000 a year, and it would remain, therefore, for the Imperial Government to subscribe £10,000 a year. Upon this point we would refer to our letter to the Colonial Office, dated October 15, 1880. We would only add that the cable will be almost useless in a military sense if laid to Réunion and thence to Mauritius. Indeed, we could not recommend that any expenditure should be incurred unless the line were taken direct to Mauritius, whence a branch might be laid to Réunion.

Port Elizabeth.

13. The defence of Port Elizabeth has been advocated, and it has been stated that if the Imperial Government would assist the Colony by providing the armament, the Colony would undertake the construction of the necessary works and provide a garrison.

Looking to the large expenditure which we have recommended at the Cape of Good Hope, and the greater security which will thereby be given to trade, we are not prepared at present to recommend any Imperial outlay on Port Elizabeth.

II. THE VARIOUS ROUTES ACROSS THE INDIAN OCEAN.

14. The Indian Ocean, comprising 120° of longitude and 68° of latitude, is traversed in various directions by British commerce, of the aggregate annual value of £190,183,000.

15. The only foreign maritime Powers which have possessions on this ocean are France, the Netherlands, Italy, and Portugal, France has Réunion; Ste. Marie de Madagascar, Nossibé, and Mayotte, in the Mozambique Channel; Obock, and other places near the entrance of the Red Sea, and Settlements in India. The Netherlands has possessions in Sumatra, Java, and other adjacent islands. Italy has Assab in the Red Sea. Portugal has possessions in India, and on the eastern coast of Africa. Other powers on the Indian Ocean possess as yet no harbours of commercial importance.

16. Leaving Great Britain out of consideration France is the most formidable Power in the Indian Ocean. The Islands of Ste. Marie de Madagascar, of Nossibé, and of Mayotte are reported to possess commodious and safe anchorages. At Obock, on the opposite coast to Aden, the anchorage is good, and coal is reported to be found in the neighbourhood. France has also three other Settlements in the Red Sea, viz., the Island of Dessi, at the entrance to Annesley Bay; Ad,

Aden.

22. The next point to which we desire to direct attention is Aden, near the outlet of the Red Sea.

The distance of Aden from Suez is 1,300 miles, from Mauritius 1,970, from Bombay 1,637, and from Ceylon 2,130. It is not only an important coaling station in peace time for ships using the Suez Canal, but in the event of a war with any of the Mediterranean Powers, it will be the only place in the possession of your Majesty from which a fleet could prevent foreign ships of war that had passed through the Suez Canal into the Red Sea from gaining access to the Indian Ocean. The position also is so commanding that its loss might be productive of serious danger to British interests throughout the East. There is good reason for making Aden at least secure against the attack of a small naval squadron.

23. The defence of Aden has been carefully considered, on the spot, no less than four times in the last twelve years.

1. In 1870, by a Committee, of which General Tremenhere was President.

2. In 1872, by Lieutenant-General Sir William Jervois, R.E.

3. In 1879, by the Defence Committee of India.

4. In 1882, by Colonel Crossman, R.E.

In addition to these four Reports we have a fifth, prepared in the War Office in 1880. The Reports all agree closely as to the position and nature of the works necessary for the protection of the port.

24. The port of Aden is small, and at present a moderate number of ships assembled in the roadstead might seriously impede the action of the batteries and embarrass the defence of the