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carriage of ammunition of the movable armament still remains 2,085. (Page 41, paragraph 6 (i).) Detailed arrangements for their employment are wanting.

16. Page 28, paragraph 7.—It is important that a recapitulation on Army Form A 2008 of the manning tables of the armament, fixed and movable (except machine guns, which should be manned by infantry), should be inserted in the Defence Scheme as Table D (ii).

17. Pages 38 to 40. Submarine Mining.-The number of Volunteers shown in the last columns of Tables E (ii) and E (v) is in each case 50, while in Table B, page 11, only 28 are shown.

It is not clear what arrangements are made for manning the observing station at Lyemun. No manning detail is included in Table E (v), but possibly arrangements have been made for the Brennan detachment to man the observing station also.

18. Page 54, paragraph 8.-The substitution for the time-table contained in the 1901 Defence Scheme of a statement that the hours of issue of ordnance stores will be settled personally by the various Section Commanders with the Chief Ordnance Officer, represents a falling away from the satisfactory arrangements commented upon in paragraph 36 of the Colonial Defence Committee's Remarks, No. 282 R, on the 1901 Defence Scheme, and it seems desirable that the whole subject should receive the further consideration there suggested, with a view to avoiding confusion on mobilization.

19. Page 55, Table H.--There is nothing in Table H, "Return of ordnance stores required for mobilization," to show that the stores are available in peace, and it is clear from internal evidence that the requirements have not been recently revised.

The Colonial Defence Committee recommend that the requirements should be carefully reconsidered, and that fresh returns, similar to those rendered in accordance with paragraph 15 of the Committee's Remarks, No. 218 R, on the 1898 Defence Scheme (G.O.C. letter No. 49/88 A, dated the 25th May, 1900, and W.O. No. 57/Hong Kong/35S), should be drawn up and submitted for War Office approval. The columns in the form used, showing stores available from peace supplies, defence reserve, and local purchase on mobilization, as well as the columns showing stores required, should be printed in the Defence Scheme.

20. Page 71, paragraph 3, and page 103 (2), paragraphs 2 and 3. Cost of Mobiliza- tion. The question of the incidence of cost of mobilization at Imperial coaling stations in the Colonies has recently been under the consideration of the Colonial Defence Committee. It is impossible to determine beforehand the ultimate incidence as between the British and Colonial Exchequers of the cost of placing these coaling stations in a state of defence, and the Lords Commissioners of the Treasury have approved a recommendation by the Committee that all disbursements on and after mobilization connected with Defence Schemes should be made by the military or civil authorities, as the case may be, who administer the various services, so as to establish a definite modus vivendi during the continuance of a war, without prejudice to the final adjustment between the Imperial and Colonial authorities at its conclusion.

The Colonial Defence Committee accordingly recommend that the Governor should direct the Local Defence Committee to embody in Chapters III (K) and VI (i) (2) of the Defence Scheme statements that the Chief Paymaster and Colonial Treasurer would open on mobilization accounts for all war services administered by the military and civil authorities respectively, a note being added in cach case that the accounts are subject to subsequent adjustment between the Imperial and Colonial Governments.

Estimates of the initial and weekly recurring cost of the various war services dealt with in Chapters III and VI (i) should be embodied in Chapters III (K) and VI (i) (2) respectively. Among the items of expenditure to be met by the Colonial Treasurer would be the pay of the Volunteers (but not rations, which would have to be supplied by the Army Service Corps), the cost of hiring examination vessels and of supplementing the personnel employed under the Harbour-Master and Captain Superintendent of Police.

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