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No. 140..

Colonial Office to Admiral Sir A. Milne, Bart., G.C.B.

(Secret and Confidential.) Sir,

Downing Street, May 31, 1878.

I AM directed by Sir Michael Hicks Beach to acquaint you that the Lords Com- missioners of the Treasury have agreed to his proposal that the first cost of the measures recommended by your Committee for the defence of certain Colonies shall be provided for on Army and Navy Estimates, and that it shall be matter of separate consideration what proportion thereof shall be refunded by the respective Colonies.

I am accordingly to request to be favoured with the general view of your Committee as to the proportion in which that expenditure should be divided in the following cases, having regard to the Imperial and local interests to be served in each case, viz., Table Bay, Hong Kong, Singapore, Mauritius, Ceylon, Barbados, Jamaica, and Victoria, in British Columbia; Esquimalt and Simon's Bay being considered as Imperial stations, are not included in this list.

This question did not, as you are aware, fall within the scope of the reference first made to your Committee, but in the course of your examination into the circumstances of each Colonial port, it will doubtless, to a certain extent, have engaged your attention. Sir Michael Hicks Beach will therefore be glad to have the advantage of any observations which your experience may lead you to offer, and which will materially assist him in deciding what recommendations he should make to the Secretary of State for War and the Lords Commissioners of the Treasury, having regard to the financial condition of the Colonies concerned, together with the military contributions already paid by them.

I am, &c.

(Signed)

:

R. H. MEADE.

No. 141.

Colonial Office to Admiralty.

(Secret and Confidential.) Sir,

Downing Street, May 31, 1878. I AM directed by Sir Michael Hicks Beach to transmit to you, for the information of the Lords Commissioners of the Admiralty, the accompanying copy of a correspondence between this Office, the War Office, and the Treasury, relative to the manner of providing for the first cost of the measures recommended by the Colonial Defence Committee for the defence of the Colonies in the event of war.*

Subject to separate consideration of the proportion to be refunded by the respective Colonies, the Lords Commissioners of the Treasury state that there is no doubt that the first cost of such of these measures as may be decided upon should be provided for in the Army or Navy Estimates, according as they appertain to the one or the other Department.

With reference to the letters from this Office of the 20th ultimo and the 4th instant† respecting the gunboats, I am to state that Sir M. Hicks Beach thinks that it may be desirable in the first instance to send out the gunboats as part of the navy, leaving for future consideration whether it will be possible to organize a system under which they can be handed over to the custody of the Colonial authorities, and manned and maintained in an efficient state by local resources.

I am, &c. (Signed)

R. H. MEADE.

* Nos. 69, 71, 125, and 126.

Nos. 47 and 70.

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