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Appendix No. 4.

ISLANDS NEAR PANAMA,

Sir,

472

Inclosure 5 in No. 137.

Admiralty to Commander-in-chief, Pacific.

Admiralty, April 26, 1875. I AM commanded by my Lords Commissioners of the Admiralty to inform you that they have bad under their consideration your letter of the 15th September, 1874,* relative to the supply of coals to Her Majesty's ships at Panamá, and suggesting that a store depôt on a small scale would be desirable.

2. In reply, I am directed to acquaint you that their Lordships do not deem it expedient to establish a depot, as they are of opinion that the expenses consequent on organizing one, on however limited a scale, would greatly overbalance the advantages to be derived therefrom.

3. As regards the proposal to lease land from the Railway Company and to store coal thereon in the way pointed out, my Lords are of opinion that, in the long run, the cost of coal so obtained would be nearly as high as the rates recently paid, when to the estimated expenses enumerated by you are added the rent of land, the cost of sheds, and the expense of taking charge.

4. With the view, however, of placing on a more permanent footing the supply of coals at Panama and elsewhere on the west coast of South America, my Lords caused negotiations to be entered into with the Pacific Steam Navigation Company, and I am directed to inclose herewith, for your information and for distribution to Her Majesty's ships under your command, eighteen copies of a contract entered into by that Company, whereby supplies of coals are secured for the years 1876 and 1877.

I am, &c.

(Signed)

ROBERT HALL.

[The ports at which the Pacific Steam Navigation Company agreed to supply coals were :— Taboga (Bay of Panamá); Payta and Callao (Peru); Caldera (Chile.)]

Sir,

Inclosure & in No. 137.

(D) Vice-Admiral the Hon. A. A. Cochrane (late Commander-in-chief, Pacific), to Admiralty.

May 11, 1878. WHEN in command of the Pacific Station, I addressed some communications to their Lordships on the subject of the advantage of acquiring the Island of Pedro Gonzales, &c., for the purpose of establishing a coaling-station and naval depôt. A few thousand dollars would then have sufficed for the purchase.

By the last mail I received the letters inclosed, which I have the honour to forward to you for their Lordships' information.

I have, &c.

(Signed)

A. A. COCHRANE, Vice-Admiral.

My dear Sir,

(Inclosures to Letter D.)

(No. 1.)

Mr. Crompton to Vice-Admiral the Hon. A. A. Cochrane.

Colon, April 4, 1878.

I inclose a letter concerning Pedro Gonzales Island, received from Mr. Victor Plisse, thinking it might interest you.

I remain, &c. (Signed)

R. C. CROMPTON,

(No. 2.)

Mr. Plisse to Mr. Crompton.

وو

Panamá, March 27, 1878.

Dear Sir,

As

you will see by the "Star and Herald" of the 25th instant, the United States' ship "Tuscarora was to have sailed from San Francisco about the 1st March on a surveying voyage, in which she is to make a coast survey from Cape Corrientes down to Panamá. As this may involve on the part of the United States' Government the idea of looking for a convenient place to establish a naval station, in which case they would surely give the preference to the Island of Pedro Gonzales, I think it will be agreeable to you to be aware of this circumstance in order that you may transmit it to your friends in England who were interested in the possession of same island some time ago.

I remain, &c. (Signed) VICTOR PLISSE.

* Inclosure 4.

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