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3. I also inclose copies of the further despatches* relating to defence referred to by Governor Hennessy, together with copies of two letters from the Colonial Defence Committee with reference to the Governor's suggestion as to the possibility of utilizing Hong Kong as a recruiting ground for raising Chinese regiments for the Queen's service in any part of the world, and I am to state that this question has been referred to the Secretary of State for Foreign Affairs, in a letter of which I inclose a copy, with reference to any point of international law which may be involved in the suggested extensive recruiting of Chinese subjects.

4. Colonel Stanley will probably read with interest Governor Hennessy's opinion on the alleged deterioration of fine regiments from service in the tropics which are contained in the concluding paragraph of his Confidential despatch of the 16th July.

No. 323.

I am, &c.

(Signed)

R. H. MEADE.

Colonial Office to War Office.

you

(Secret and Confidential.) Sir,

Downing Street, September 4, 1878. I AM directed by the Secretary of State for the Colonies to request that will state to Secretary Colonel Stanley that he laid before the Lords Commissioners of the Treasury, in a lettert of which a copy is inclosed, your letter of the 21st June with reference to the proposed presentation of certain guns and ammunition to the Government of New- foundland, and I now transmit to you a copy of their Lordships' reply.

2. With regard to the question whether the Imperial or Colonial Government should pay for Colonial defences, I am to observe that this can only be decided after full con- sideration of the circumstances of each particular case. If a Colony is important as a strategical position for the Empire at large, Sir Michael Hicks Beach is of opinion that the Home Government is certainly primarily responsible, aided, so far as may be possible, by local funds, as in the case of Mauritius, Hong Kong, the Cape of Good Hope, and the Straits Settlements. Other places, like many Australasian ports, for instance, are important in another sense, mainly on account of their own commerce and wealth, and the expense of their defence ought to be, and is, borne by their inhabitants, rather than by the taxpayers of the United Kingdom. Again, in the case of many of our younger or less prosperous Colonies, it may be sufficient to trust to Her Majesty's navy for protection. These places offer little or no temptation to an enemy for plunder, much less for occupa- tion, and it would therefore seem unnecessary for the Imperial Government to expend considerable sums in the erection of permanent defences which are not likely to be required, and towards which the Colonial Governments would be entirely unable to contribute. But there is a class of Colonies, of which Newfoundland is a sample, which come under none of the above heads. They can hardly be dealt with on any general rule, though those of them which possess responsible Government may be reasonably expected to do more for themselves than those which do not.

3. Sir Michael Hicks Beach considers it a matter of importance in the interests of the Empire that it should be difficult for an enemy to inflict a humiliation upon this country through a sudden attack by a weak force upon such a port as St. John's; and for this reason he thinks that this port, even if not strictly speaking of strategical necessity for the Empire at large, should be placed in a position to defend itself against hostile attacks. It is now entirely exposed to an enemy, even if in comparatively small force; but Sir Michael Hicks Beach looks upon the offer of the armament now proposed as the means of inducing the Colonial Government to take, at their own expense, the necessary measures of preparation for such an emergency, which there is reason to fear will otherwise be neglected; this being, in fact, the condition cn which it is proposed to be given.

4. Sir Michael Hicks Beach trusts that, for these reasons, Colonel Stanley will be able to give the necessary assurance of the Imperial necessity of the defences of Newfoundland, and on hearing to that effect he will call upon the Governor to report whether the Colony is prepared to agree to the conditions upon which it is proposed to present the guns and ammunition.

5. It would be convenient if the information as to the cost of the service for gunners

* Nos. 309, 235, 257, 308, 258, and 264.

† No. 267.

+ No. 296.

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