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forward on emergency.

Such men have rendered most excellent service in many Colonies. I will not, however, enter into further minor details.

12. It only remains for me to acknowledge the great obligation that the Colony is placed under to Colonel Crossman, and also to the military authorities who have entrusted the treatment of this question to such an officer.

I have, &c.

(Signed)

FRED. A. WELD.

P.S.-I find that through some clerical error in statistics furnished, a mistake occurs in Colonel Crossman's Report No. 50. The population of Penang Island being 90,957 (not 43,793), to this should be added the population of Province Wellesley, the mainland side of Penang Harbour, 97,294 : total, 188,245.

Inclosure 2 in No. 79.

F. A. W.

Lieutenant-Colonel Crossman, R.E., to the Inspector-General of Fortifications.

(Confidential.)

Sir,

Singapore, November 23, 1881. I HAVE the honour to state that I arrived at Penang on the 17th November, and, having examined the existing fort and the country round, have to report as follows:---

The Island of Penang is one of the Straits Settlements, locally governed by a Lieutenant-Governor under the orders of the Governor at Singapore, from which place it is about 380 miles distant.

The island is about 15 miles long and 9 miles wide, containing an area of 68,400 square acres, generally hilly, the hills being covered with trees, now being cut down in many places to make room for spice and coffee plantations.

On the east and west sides there are level plains bordering the sea-coast, on the largest of which is situated Georgetown, the only town in the island, which is built on a spit of land projecting eastwards opposite the Province of Wellesley (also British territory), on the mainland of the Malay Peninsula.

The island is separated from the province by a strait, 1 miles wide opposite Georgetown, and widening to about five miles at the southern end of the island.

The harbour is commodious, well sheltered, and easy of access from the north. The southern channel is more intricate, owing to a number of shoals and banks, but still easily navigable by means of charts, in fair weather, by vessels drawing 15 feet of water at all times of the tide.

The population of the island in 1881 was 43,793,* principally Chinese, Malays, and Klings, the European and American residents being 275.

In 1880 the imports amounted to 3,700,0001., and the exports to 3,720,0007.

The principal business is in the hands of Chinese merchants, and consists chiefly in receiving goods froin the neighbouring Dutch islands, and transhipping them to Europe in English and other vessels.

There is a small dock in Province Wellesley, opposite Penang, but there is no large supply of coal, and no facilities for refitting and revictualling vessels, no extensive stores, piers, or wharves.

It is not a place that requires fortifications either as a coaling or refitting station for the Royal Navy or mercantile marine, neither are the Imperial or local interests at stake of sufficient importance to require such a defence as would convert the harbour into a place of refuge for British shipping secure against the attack of a small squadron, or even against a single powerful ship.

It only remains to consider whether it would be desirable to guard against the place falling into the hands of one or two light unarmoured cruizers.

Should it be decided to do so, Fort Cornwallis might be remodelled to admit of four heavy guns being placed on the terrepleins of the north-west and south-east bastions, and on the curtains between them, to bring a fire to bear on the north and south channels. The north-eastern bastion, which affords the best position for a gun to bear on the roadstead, is now occupied by a lighthouse in course of construction.

The fort is an old square bastioned work, situated at the extremity of the spit on which George- town is built, constructed during the last century. It has an exterior side of 150 yards, the bastions are small and confined, and though surrounded by a wet ditch, and secure against assault without artillery, could make no stand against the guns of the present day.

The detachment of artillery formerly stationed here has been removed to Singapore, and the infantry at present in the fort are about to be moved to the Sepoy lines, where the remainder of the two companies now forming the garrison of the Settlement arc stationed.

The expense of mounting guns en barbette, remodelling the magazines, &c., would, it is estimated, cost 14,0007., and the armament would cost 2,4007.-total, 16,4007.

This is an expense which I do not think ought to be incurred, certainly not by the Imperial Government; if anything is done, it should be done at the expense of the Colony.

But if guns are mounted, it would still be possible for cruizers heavily armed to throw shells into the town, and bombard the place at night by manoeuvring in and out of the range of the guns of the battery.

As any semblance of fortification would subject the place to destruction or heavier contributions, and besides, would tend to a feeling of false security on the part of the Chinese and Malay inhabitants,

[1103]

* See PS, above.

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Appendix No, 4.

PENANG.

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