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as worked, should occasion arise, I am commanded by my Lords Commissioners of the Admiralty to transmit herewith, for the information of the Secretary of State for the Colonies, a copy of a Report on the subject from Captain Arthur, of Her Majesty's torpedo-ship "Vernon," together with a copy of the observations of the Director of Naval Ordnance.

2. My Lords fully agree with the opinion expressed by the Director of Naval Ordnance, that, taking into consideration the delicacy of the machinery of the Whitehead torpedoes, they are not well suited for Colonial defence.

3. My Lords further consider it would be objectionable to intrust the secrets con- nected with the Whitehead torpedo to men at these distant stations; and having in view the remoteness of the Colonies where it is proposed to place them, and the improbability of any serious attacks on those places, my Lords are of opinion that the Whitehead torpedoes asked for are not required.

I am, &c.

(Signed)

THOS. WOLLEY.

Inclosure 1 in No. 274.

"Vernon," Portsmouth, July 19, 1878.

(Secret.) Sir,

IN reply to their Lordships' letter of the 17th July, 1878, I have the honour to report that in order to utilize the Whitehead torpedoes intended for the defence of the Colonies, it would be necessary to provide a torpedo boat for each port. There are already at Hong Kong and Singapore, and, probably, also at Esquimalt and Cape Town, Colonial steamboats capable of being altered to carry these weapons, but as they would require to be fitted with torpedo frames and davits, as well as air-compressing engines and pumps, and would then, from want of speed and proper arrangements for preventing noise and smoke, be inefficient; I submit that it would be more desirable to construct four vessels of the "Lightning" class for the purpose, and send them out fully equipped.

2. As regards the requisite crew the "Lightning" bears :-1 officer in command, 1 warrant officer, 1 engineer officer, 2 engine-room artificers, 1 leading stoker, 2 stokers, 1 petty officer, 2 able seamen; but these, for the occasional work required in the Colonies might be reduced to, say, 1 officer in command, 1 engineer, 1 leading stoker, 2 stokers, 1 petty officer, 1 able seaman.

And as I presume that the services of those men already employed in the Colonial steam launches would be available, it would only be necessary to send out a petty officer and an engine-room artificer, or leading stoker, to each station. Men pensioned from the navy and instructed on board the "Vernon" in the manipulation and repair of torpedoes and of the air-compressing machinery could be obtained for this purpose, and the fact of their possessing a pension from the Crown would be a security for their maintaining the secret of the Adjustment Chamber, which must be confided to them.

3. At each station, with the probable exception of Cape Town, the Torpedo Lieutenant attached to the flag-ship would occasionally be present, and he could give such advice and exercise such supervision as might be required.

4. Should their Lordships approve, I might be placed in direct communication with the Colonial Office for the purpose of arranging details as to the necessary stores, &c.

I have, &c.

W. ARTHUR, Captain.

(Signed)

Admiral Ed. J. Fanshawe,

Commander-in-chief.

Inclosure 2 in No. 274.

Remarks by the Director of Naval Ordnance.

August 1, 1878.

I PRESUME it will be admitted these Colonies could not be defended against a powerful naval attack, supposing our own fleet absent, and that the real object in proposing to send them Whitehead torpedoes was as a defence against the attack of one or two cruizers which might have evaded our squadrons.

To send out torpedo vessels of "Lightning' class appears to me an expensive measure, but if Whitehead torpedoes are to be used speed is necessary, which can only be obtained in such vessels. The temptation to use these vessels for other purposes

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