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The position of this boundary affects the question of British protective power over the mouth of the Stakine River, the line of communication from the sea to the gold mines in the Cassiar country near Dease Lake (584° north longitude, 128° west), one of the most important mining districts in British Columbia.

Not being able to obtain locally any definite information on this question, I decided to return to Halifax through Washington, that I might make inquiries at the British Embassy, where I had an interview with Sir Edward Thornton, who, while unable to say which is the correct boundary, expressed himself as anxious that the line of demarcation between the two territories should be settled as early as possible.

These subjects I will leave to the end of this Report, and now revert to the specific subjects men- tioned in your letter of instructions, which are as follows:-

(a.) The means to be adopted for placing the harbours of Esquimalt and Victoria in an efficient state of defence by permanent works, the extent to which the temporary works may be made available being reported.

(b.) Whether the two harbours can be considered independently, or whether, on the other hand, the scheme of defence must necessarily embrace both, bearing in mind that Esquimalt, as an Imperial station, is of primary importance.

(e.) The garrison required to be permanently retained, and the manner in which such garrison should be constituted, stating the extent to which assistance in this respect may be expected from local

sources.

(d.) The advisability of providing for the defence of Nanaimo, and the means to be taken for its defence in case such a measure should at any time be required.

(e) My views generally on the measures which should be taken for the defence of the Pacific coast of Her Majesty's dominions in the event of war, bearing in mind its distance from any established naval arsenal, and the difficulties which must therefore attend any hostile operations.

General Description.

Appendix No. 4.

VANCOUVER ISLAND.

The harbours of Esquimalt and Victoria open into a fine open anchorage called Royal Roads, on Plate V.* the north shore of the Straits of Juan de Fuca, and about 50 miles from its entrance.

These roads are very much frequented by vessels engaged in the British Columbian trade, a great part of which passes by or through Victoria to the ports of New Westminster, Burrard Inlet, Howe Plate I.* Sound, Nanaimo, Baynes Sound, &c., in the Straits of Georgia.

In the Straits of Juan de Fuca there are no obstacles to navigation except the thick fogs that are very prevalent, especially on the American or south shore, where they are frequently dense to the height of a ship's masts; while at the same time the Vancouver Island shore, and Royal Roads, may be quite clear.

Beyond Victoria the intricate passages between the islands, the rocks, the rapids, and changeable Plate I.* currents, eddies, and tide rips, the almost entire absence of good anchorage, coupled with the dense fogs that often come on in the Haro and Rosario Channels and in the Straits of Georgia, make the naviga tion so tedious and unsafe to vessels under sail that steam-tugs are usually employed to take them to their destination.

To escape the danger of being driven on to the rocks at Cape Flattery, on the south side of the entrance of the straits, by a current which sets down the western shore of Vancouver Island, sailing-vessels usually sight Cape Beal Lighthouse, on the south side of Barclay Sound. The trade is not sufficient to induce tugs to lie off this point, but as the prevailing winds are westerly, vessels can generally find their way up the straits to Royal Roads, where they lie in safety until they can obtain a tug to take them up the Straits of Georgia. Outward-bound vessels are brought down in the same way, and lie in Royal Roads to complete their stores or wait for a favourable wind. Four or five large vessels are generally to be seen in these roads, and as the timber, fish, and other industries are increasing, and further development of trade may be expected to follow the construction of the railway of the valley of the Fraser River, the importance of this anchorage will become more and more evident.

The part of Royal Roads in which the merchant-vessels usually anchor is the direct track by which an enemy would advance to the attack of Esquimalt Harbour.

On the opposite or United States' shore of the Straits of San Juan de Fuca, at a distance of 15 miles from the entrance of Esquimalt Harbour, lies Port Angelos, selected some short time ago for Plate I.* the United States' naval station in these waters, towards the formation of which, however, nothing has yet been done.

About 25 miles further to the east is the entrance to Puget Sound, on whose shores are several small but rising towns. Some coal-mines have been opened here, but all have failed except that at Seattle, which is yielding a large quantity of coal suitable for domestic use, but of inferior quality for steam purposes to that at Nanaimo mines, which is largely purchased for the San Francisco

steamers.

A considerable trade by water is carried on between Puget Sound and San Francisco.

For the command of these two ports on the United States' territory and their trade, and the pro- tection of British trade and shipping in the Straits of San Juan de Fuca, no better position could be chosen than Esquimalt Harbour, and for this reason, even if it is not in the best situation for the chief naval station, it should be strongly fortified.

In determining the extent and scale of the defensive power that should be given to the station, it seems necessary to take into account not only its distance from any foreign naval arsenal, but its own circumstances, which are complete isolation and entire severance from any possibility of being rein-

*Not printed.

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