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North Point Battery, to mount five 7-inch guns. This battery is also ready, and the guns are on the spot.

West Point Battery, near Belcher's Bay, to mount two 7-inch guns. Battery ready, and guns on the spot.

3. Except in Wellington Battery, where the guns are mounted for drill purposes, I understand it is not intended at present to absolutely mount the guns, on account of the difficulty of guarding the fitments. The slides and carriages will, however, be placed in position, and the guns can at any time be mounted, I am told, in about half-an-hour per gun.

4. On the question as to the amount of assistance the volunteers can give the regular troops in working those batteries, I shall write more fully in another despatch.

Meanwhile I inclose, for your information, copies of the regulations I have issued respecting the volunteers.

5. With the concurrence of Colonel Bassano, I have appointed Captain Dempster, of the 28th Regiment, to be the Commandant of the Hong Kong Volunteers.

I have, &c.

J. POPE HENNESSY.

(Signed)

No. 217.

The Earl of Dufferin to the Right Hon. Sir M. E. Hicks Beach, Bart.-(Received July 2.) (Secret.) Sir,

Ottawa, June 21, 1878. WITII reference to your despatch of the 23rd ultimo, marked Secret,* I have the honour to transmit herewith a copy of an approved Report of a Committee of the Privy Council relative to the defence of the principal Canadian Atlantic ports.

I also beg to forward a copy of a report prepared by Lieutenant-General Sir Edward Selby Smyth, K.C.M.G., Commanding the Militia, on the same subject.

Inclosure 1 in No. 217.

I have, &c. (Signed)

DUFFERIN.

Report of a Committee of the Honourable the Privy Council, approved by his Excellency the Governor-General, on the 18th day of June, 1878.

THE Committee of Council have had under consideration a despatch from the Right Honourable Sir. M. E. Hicks Beach to his Excellency the Governor-General, transmitting a copy of the recommendations of the Colonial Defence Committee for the defence of the principal Canadian Atlantic ports.

Sir M. E. Hicks Beach requests that he may be informed whether the Government of Canada is prepared to undertake the works and armaments proposed by the Committee, the maximum cost of which would be 50,0001. or 48,000l., according to which alternative is adopted for Sydney, subject to certain possible deductions set forth in the despatch.

The proposal involves the construction of batteries at St. John, New Brunswick, Sydney, Cape Breton, Charlotte Town, Prince Edward Island, and Pictou, to be armed with 7-inch 7-ton guns and 64-pounders. The first-named gun, in addition to being very expensive, would, in the opinion of Lieutenant-General Sir E. Selby Smyth, require to have small parties of artillery permanently stationed at every battery to keep them in order, thus entailing a considerable annual charge on the public revenue.

Lieutenant-General Sir E. Selby Smyth has submitted a proposition for improving the batteries at the several points named, which, while, no doubt, less effective than the plan suggested by the Defence Committee, will, it is believed, materially strengthen the present defences.

He suggests, for the reasons set forth in his Report, that in lieu of the 7-ton guns, an equal number of 5-pounder converted Palliser rifled guns should be procured. The annual expense of maintaining in good order batteries mounted with the latter guns would be much less than the 7-ton guns, as ordinary care-takers would be sufficient to preserve that description of ordnance.

St. John and Sydney being the most important points, the Committee recommend the purchase from the Imperial Government of the following guns, to be delivered and mounted under the direction of the Dominion Inspector of Artillery, viz. :-

* Miscellaneous No. 35 F.

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