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Commissioners of the Admiralty have placed themselves in communication with the War Office and Treasury for the construction and armament of those works which they state to be necessary, and he requests that so soon as an arrangement has been made he may be informed whether any communication should be made to the Canadian Government with the object stated in the letter from this Department of the 10th ultimo.*

I am, &c.

(Signed)

No. 66.

Colonial Office to War Office.

R. H. MEADE.

(Secret and Confidential.) Sir,

Downing Street, May 1, 1878.

I AM directed by the Secretary of State for the Colonies to transmit to you, to be laid before Colonel Stanley, a copy of a letter from this Department to the Admiralty,† respecting the temporary loan of certain guns now at Hong Kong, together with a copy the reply received from their Lordships' Department.

of

Sir Michael Hicks Beach is not aware whether the decision of their Lordships has been communicated to the War Office in accordance with the request of the Colonial Office letter of the 17th ultimo, and he now presumes that Colonel Stanley will cause the necessary steps to be taken for mounting the guns lent by the Admiralty, and for providing with as little delay as possible a supply of guns to replace those borrowed.

No. 67.

I am, &c.

(Signed)

R. H. MEADE.

(Secret and Confidential.) Sir,

Treasury to Colonial Office.

Treasury Chambers, May 2, 1878. THE Lords Commissioners of Her Majesty's Treasury have had before them Mr. Malcolm's letter of the 20th ultimo,§ and the copy (inclosed) of the Report of a Committee appointed to consider the temporary measures required for the defence of the Colonies in the event of war.

My Lords understand that the estimated cost of the works, armaments, &c., recom- mended by the Committee (excluding Port Elizabeth and the additional proposals for Singapore) will be 213,4001., apportioned to the several Colonies as follows:-

Colony.

Cape Town

Works.

£ 17,600

Ármaments.

Gun-boats.

£ 16,600

£

13,000

Mauritius

400

4,000

Ceylon

21,600

28,800

Straits Settlements

17,600

18,600

Hong Kong

30,000

19,200

26,000

87,200

87,200

39,000

£213,400

My Lords assume that this expenditure will be confined, as far as possible, to such precautions as are necessary chiefly for the protection of Imperial stores, dockyards, &c., in the event of immediate emergency; and that the works to be executed will be for that object; and as it is represented that the matter is urgent, and the interests immediately involved are largely, though not solely, Imperial, they are prepared to authorize the expenditure.

My Lords must, however, reserve to themselves the ultimate decision as to the apportionment of the expenditure between the Imperial and Colonial Governments, and they desire that it may be clearly understood that the Imperial Government is not in any way committed with regard to any permament outlay.

My Lords presume that application will be made to the War Office for the supply of the guns and submarine defences, in order that the necessary provision may be made in the estimates of that Department, and they request that that Department may be informed

* No. 36.

† No. 42.

‡ No. 64.

§ No. 45.

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