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Colonel Strange, Royal Artillery, Dominion Inspector, and to our great disappointment we found that, owing to temporary impecuniosity, the Messrs. Gilbert had made no progress nor attempt with this trial gun, but they promised faithfully they would be shortly in a position to do so.

However, it will not do to trust to chance in such matters, for even if they could undertake to turn out converted cannon and projectiles eventually, it would be some time before they could be ready. Meantime, I strongly recommend the purchase of forty 4-pounder Palliser rifled guns; from Woolwich they could be dispatched before summer is

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over.

Sir William Armstrong would charge more than if bought at Woolwich Arsenal, besides his guns are, as well as very expensive, of a different character from Sir William Palliser's converted gun, and considering that Sir W. Palliser has this year presented the Dominion Government with a 7 and an 8-inch gun, both now at Quebec, and later with a 10-inch gun, which he will shortly send out, I think we owe him every consideration, and I am sure, when I let him know we require a supply of guns, he will use his best efforts to assist this Government, to whom he has already shown such good-will.

We have in this country 19 8-inch guns, 135 32-pounders, 209 24-pounders, 32 18-pounders, all smooth-bore, and capable of conversion if we had the requisite machinery at work; all the above could be converted into 64-pounder and 40-pounder rifled cannon.

I have not touched upon the defence of Esquimalt and Victoria on the Pacific, as the despatch related principally to Atlantic ports. I may, however, add that Lieutenant- Colonel Irwin, Royal Artillery, is superintending the construction of a two-gun battery on Beacon Hill, Victoria, and a four-gun battery on McAulay's Point, lying between Victoria and Esquimalt Bays, protecting the former in cross fire with Beacon Hill, and at long range, commanding also the entrance or approach to Esquimalt Navy Yard.

The true defence for the latter, however, is a battery on Fisgard Island, at the narrow strait between the bay and basin, where there should be also a two-gun battery of heavy guns manned, I think, consistently with its purpose, by seamen of the squadron or by Marine Artillery. A battery of two-guns on a neighbouring height commanding the inner bay would be an additional protection to the Navy Yard.

I think the defence of Nanaimo should on no account be overlooked. All the coal for merchant steamers and for Her Majesty's Navy in the Northern Pacific comes from Nanaimo, and it is utterly undefended except by a single company of volunteer infantry.

I have, &c. (Signed)

ED. SELBY SMYTH, Lieutenant-General.

The Hon. A. MacKenzie, M.P., l'remier.

No. 218.

(Secret and Confidential.) Sir,

Colonial Office to War Office.

Downing Street, July 3, 1878. WITH reference to your Secret and Confidential letter of the 21st ultimo,* I am directed by the Secretary of State for the Colonies to request that you will state to Secretary Colonel Stanley that he will be glad to be informed whether the War Depart- ment will be willing to furnish the nucleus of gunners and small arms, &c., referred to in the letter from this Department of the 29th May last,† for the Government of Newfound- land, providing the Colony should be prepared to defray the expense.

2. If the War Office should be able to comply with the wishes of the Government of Newfoundland in this respect, I am to request to be furnished with an estimate of the expense for providing a military training force, as well as an estimate of the cost for small arms, &c.

I am, &c.

(Signed)

R. H. MEADE.

* No. 184.

No. 136.

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