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far as the inner harbour not more than five guns in the citadel could be brought to bear upon her, and these though supplied are not yet mounted; it is, however, intended to have all the guns in the citadel in position by the end of this year.

5. The above remarks having reference to the protection of the main entrance into the harbour, there still remains to be considered the protection against an enemy's vessel of light draught attempting to reach the inner harbour by the eastern passage, and this deserves attention, as this passage, though seldom utilized except by small vessels, was, nevertheless, passed through by the Southern ship "Tallahassie," to escape from the harbour whilst blockaded by a Northern vessel-of-war.

6. It will be seen by reference to the plans of the harbour that the bar, over which there is only 1 fathoms at low water, is situated at the southern extreme of Lawler Island, and at present is quite out of the fire of any ordnance now in position. A few guns, however, placed on the highest ground, 152 feet above the sea on Macnab Island, would effectually cover this entrance along its whole distance; but no works at present exists there, and in the absence of such, I should suggest, as a ready means to prevent the approach of an enemy by this passage, that it should be entirely blocked by sinking a vessel in the narrowest part.

7. There can be no doubt that the presence of ships in port would largely add to the defence of the harbour, but as in time of war the ships of the squadron, except such as might be under refit, coaling, or provisioning, would be at sea, no reliance should be placed on these means of defence.

8. I desire to call their Lordship's attention to the fact that, from the decayed and almost sinking condition of the "Pyramus," it has become necessary to replace this vessel by some other ship, and if such vessel could be fitted as a block ship, and armed with a few guns, she might in case of necessity be moored off the Commissioner's house, and would doubtless form no inconsiderable additional protection to the port. The expense for the maintenance of such a vessel need not greatly exceed the expense of the present useless craft; in time of need she could be manned by fishermen or men belonging to the dockyard, and as her accommodation would be superior to the "Pyramus'," she might be used to hulk the crew of a vessel coming north with yellow fever. Large supplies of stores are being sent continually from England for Bermuda and this port, and she might perhaps be made available as a store-ship on leaving England.

9. It seems unnecessary to add a plan of Halifax Harbour, as a reference to the Admiralty plan would make the foregoing remarks clear.

(Signed) E. A. INGLEFIELD, Vice-Admiral.

No. 296.

Sir,

Treasury to Colonial Office.

Treasury Chambers, August 17, 1878.

THE Lords Commissioners of Her Majesty's Treasury have had under consideration the correspondence inclosed in your letter of the 3rd instant* on the subject of the defence of Newfoundland; and I am directed to request you to inform the Secretary of State for the Colonies that my Lords are not prepared to accede to any expenditure from Imperial funds for Colonial defences which cannot be shown to be of strategical necessity for the Empire at large.

My Lords do not gather from Lord Eustace Cecil's letter of the 21st June last, to the Colonial Office, that the military authorities regard the proposed defences of St. John's in this light. But even if it should be made to appear that my Lords have, in this respect, misapprehended the meaning of Lord Eustace Cecil's letter, the utmost they are prepared to agree to is that, in his Lordship's words, the Imperial Government should furnish the required guns, provided that the Colony undertakes to place them in position, and to maintain the necessary force for manning and defending the port, including the provision of their arms and equipment.

Assuming that the Imperial necessity of these defences can be supported by the judgment of the military authorities, it will remain for the Colony to give the required engagement, and for the same authorities to approve of the details of it.

My lords will then be prepared, on the recommendation of the Secretary of State, to authorize a supply of guns and ammunition not exceeding in value 4,8001.

I am, &c.

(Signed)

* No. 267.

R. R. W. LINGEN.

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