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enrolment and training of volunteers. In the event of European troops alone being employed, the Colony should be called upon to contribute in proportion; but if some scheme be adopted under which the Colony would not receive the sites, a proportionate reduction must be made in their contribution,

Port Hamilton.

89. Even with Hong Kong assured to them, your Majesty's ships will have great difficulty in affording adequate protection to British ships trading with the northern ports of China and with Japan, because of the prevalence and

628.

strength of the north-east monsoon. This consideration, coupled with the Third Report, p. 344-353. knowledge that Russia has of late years been increasing her power, naval and Digest, pp. 607, 610, 627, military, in this part of the world, and is believed to aim at extending her influence southward by obtaining a port in the Corea, induced Sir H. Parkes, and several naval authorities, to urge that Great Britain should obtain and occupy Port Hamilton, a small island off the south-east coast of Corea. Port Hamilton is a good harbour, easily defensible, distant about 1,100 miles north from Hong Kong, and 360 miles to windward of Shanghae.

90. We have given this question our most anxious consideration. In Third Report, paragraph 133. another part of our Report we have expressed our opinion that the best mode of dealing with Russia in the Pacific in time of war will be by strengthening the China Station. To this end we have suggested the transfer of your Majesty's ships from the Eastern waters of the Pacific to the China scas; and it is obvious that the occupation of Port Hamilton would greatly strengthen our position in those seas as against Russia, and add materially to the security of Hong Kong and of the trade to the north of it. Indeed, without some outpost of this kind, it would be impossible, owing to the prevailing wind, to protect trade north of Hong Kong, or to act with effect against the Russian ports.

Our relations with Corea are happily not unfriendly, and we desire to impress upon your Majesty's Government the importance of at once opening negotiations, with a view to securing possession of this commanding station. Failing negotiation, any further steps in regard to obtaining possession of Port Hamilton must be matter for the consideration of your Majesty's Government.

Thursday Island.

91. Witnesses from the Admiralty have drawn our attention to Thursday Digest, p. 610. Island-one of a group of islands in Torres Straits, situated 20 miles north-

west of Cape York, the northernmost point of the Australian Continent.

is a Settlement of the Queensland Government, and was selected as a

convenient harbour of refuge and port of call for ships engaged in the Third Report, pp. 354-362. rapidly-increasing trade through Torres Straits. Colonel Scratchley, in his Report, dated the 31st December, 1881, states that "it is expected that in a short time the mail-steamers (carrying cargo, mails, and passengers) will run every fortnight, and that in the course of a few years nearly all the trade between Queensland, the East, and Europe will be diverted northward, instead of passing, as at present, viâ Melbourne, the Cape, and the Suez

Canal.'

""

92. The width of Torres Straits between Cape York and New Guinea is 70 miles, but the navigation is greatly obstructed by reefs, and two channels only are at present in use. These lie on either side of the group of islands of which Thursday Island is one; but it is stated that there are other channels, and that there is probably a deep passage near the coast of New Guinea which, if properly surveyed and marked, would be available for the largest vessels. Westward of Torres Straits the navigation is comparatively easy, and to the eastward two main routes are available, passing respectively inside and outside the Great Barrier Reefs, which extend almost continuously for a distance of 1,300 miles, in a direction generally parallel with the coast of Queensland.

93. Colonel Scratchley, who is supported by naval authorities, urges the importance of fortifying Thursday Island, with the double object of providing a safe depôt of coals for your Majesty's ships, and of preventing its occupa-

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