CAB7-4 — Page 31

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Third Report, pp. 281–286.

Third Report, p. 280.

Third Report, p. 280.

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Penang.

72. We have before us Reports, drawn up in 1881 by Colonel Crossman and Captain McCallum, R.E., on the defence of Penang. The population numbers 91,000, and consists mainly of Chinese and Malays, the European and American residents numbering 275. The value of imports and exports in 1880 amounted to 7,420,0007.

73. The only existing defence is Fort Cornwallis, an obsolete work at Georgetown. The present Governor, Sir F. Weld, considers that while the true defence of Penang lies in making Singapore a base of operations for a British squadron, Penang itself should be provided with defence against any small cruizer. We are unable to concur in this opinion. We think it inexpedient to establish small isolated defences, and cannot recommend such for Penang.

74. It has been suggested that the two companies of infantry now at Penang should be withdrawn to Singapore. The Governor objects to their removal on political grounds, and considers that, if the British soldiers are removed, at least an equal force of Sikh military police should be sub- First Report, paragraphs 34 stituted. In our first Report we pointed out that small detachments in

and 35.

Digest, pp. 607, 610. Third Report, p. 292.

Third Report, pp. 286–291.

Third Report, p. 292.

Third Report, pp. 289, 293.

Third Report, p. 292.

isolated positions, without defences or artillery, afford no protection against attack from seaward, and that, in the event of war with a maritime Power, it would become imperatively necessary to withdraw them. We think that the principle applies in the case of Penang, and that the two companies ought to be withdrawn. Prompt means should be taken to organize a police as the Governor suggests, so that the European troops may be withdrawn without delay. Penang being in telegraphic communication with Singapore, and only thirty-six hours distant by steam, assistance could speedily be obtained, if required on an emergency.

Labuan.

75. Labuan is 660 miles from Singapore and 1,080 from Hong Kong, It has been urged by Vice-Admiral Willes, now in command of the China Station, that a depôt of coal must always be maintained in Labuan or the immediate neighbourhood, as most of the present ships of war cannot carry a sufficient quantity to make the passage from Singapore to Hong Kong, a distance of 1,440 miles, against a strong monsoon.

76. If a depôt is to be formed, it would be necessary to import the coal, for the present at all events. We have a Report upon Labuan, by Colonel Crossman, who states that coal of a good quality is found in abundance, but that the mines, which have not been worked since 1879, are full of water, and that the machinery and plant are fast going to ruin. A certain amount of surface coal is obtained at present, but is of little value, the deeper seams alone being useful for marine purposes. Colonel Crossman estimates that it would require a capital of 50,000l. to work the mines to advantage. Vice- Admiral Willes is of opinion that, "as merchant-steamers, however inferior in horse-power, now make the passage from Singapore to China by the direct. route, there is no probability whatever of the coal mines of Labuan being again worked."

77. Victoria Harbour is a safe and easily defensible anchorage. Two schemes for its defence have been brought before us, one estimated to cost 98,6001., and the other 104,5007., and each requiring a garrison of 500 men.

Vice-Admiral Willes is not prepared to recommend an expenditure of 100,000l. and a garrison of 500 men, and we concur in the opinion that this large expenditure should not be incurred. Labuan is one of the cases See paragraph 151, and Ap- which will, we think, be found to fall within our general recommendation

pendix No. 2.

on the subject of the storage and defence of coal in time of war at the less important stations. Meanwhile, being a British possession it cannot be occupied by any other Power, and may continue to be used as a depôt.

North Borneo.

78. It has been suggested to us that one of the ports in North Borneo might be used as an intermediate station instead of Labuan; but it appears

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