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Suez Canal.--The Suez Canal is now the most im- portant route to the East, although much trade still goes by the Cape (2074, 2075). In a naval war, free access to and passage through the Canal would be of the highest importance (2065), and should be secured, though not entirely at the sacrifice of the Cape route (2080). The Admiralty have coal depôts at Port Said and Suez, but have no right to fortify them (2089-2092, 2094). The neutralization of the Canal would be, on the whole, advantageous to us (2067, 2071). Whether neutra- lized or not, we should have to blockade and protect both ends, and should further have to guard against the Canal being blocked by treachery (2068, 2069).

A Treaty or understanding might be broken, and could not be relied upon (2066). We should look to the protection of the Suez Canal rather than to the diver- sion of trade round the Cape of Good Hope (2070). For this reason, the naval stations in the Mediterranean

are

more important than those on the Cape route

(2072).

607

Ceylon.-There must be in the Indian Ocean a thoroughly protected coaling and refitting station. Trincomalee is admirably adapted for this purpose, and should be made a strong first-class naval station, unless it be decided to occupy some island, such as Diego Garcia (1627).

Trincomalee is a purely naval station, and is not easily accessible from the interior (2121- 2123). Being out of the way of commerce, merchant- ships would not coal there except under pressure (2129). But the port is sufficient for Imperial pur- poses (2127), although the existing refitting facilities are very deficient (1750, 2120, 2129). Commerce will all concentrate at Colombo, where the harbour will, when completed, be very important, and should be pro- tected against the attack of a small squadron. Such protection would entail works on a considerable scale, the cost of which should be borne by the Colonial Government (2124–2127). But Colombo could not become a substitute for Trincomalee, and the defence of the latter will do more to secure commerce than the defence of Colombo (2129). An isolated naval station is always preferable to one combined with a commercial port, and at Colombo there would be great difficulty in getting sufficient ground for naval establishments. Colombo, also, would be more difficult to defend than Trincomalee, which might be secured by a fort and torpedoes (1633, 1634).

Aden. Aden is only partially defended (2110, 2117). Increased protection is required for the anchorage and coaling-station (2114, 2116).

Perim.-Perim does not command the entrance to the Red Sea, but is admirably placed as a station from which to defend it, and as a refuge (2095, 2097).

It

Socotra.-Socotra would be useless to us in war, has no harbours, and is surrounded with dangers (2105- 2108).

Australia.-The Imperial navy must have a de- fended harbour in Australia (2173).

Sydney. Sydney is the best strategical point for the protection of commerce (2175, 2178), and ought to be thoroughly defended (2156, 2157, 2162, 2171, 2172). Sydney is the head-quarters of the Australian squadron (2152), has an excellent harbour (2175), and a good dock (2170), is capable of thorough defence (2151, 2155, 2175), is a place of great commercial importance (2158), and is near the Newcastle coal-fields (2177).

Melbourne. Two secure ports would be very desirable, but the Imperial Government should not be answerable for more than one (2171). A harbour of refuge, with means for refitting at Melbourne, would be useful to the Royal Navy (2169), but a fleet in the neighbourhood would defend Melbourne and its com- merce only, and the Colony ought to undertake the protection of the town and shipping (2167, 2168, 2171, 2172).

Adelaide.-Adelaide is not suited for a naval station. The protection of the town is a colonial question (2181– 2183).

Hobart Town.-Hobart Town, though much visited by Her Majesty's ships, need not be defended like Sydney (2159-2161). Hobart Town is the capital of a poor

Colony which could not do much towards defence (2164). The Australian Colonies ought to maintain a squadron of gun-boats, and, if possible, an iron-clad for local defence (2163).

King George's Sound.-King George's Sound is an excellent harbour (2141), but is little used by Her Majesty's ships. The coal depôt of the Peninsular and Oriental Company is being given up (2138, 2139, 2140, 2142, 2150). In a war likely to extend to Australian waters, King George's Sound should be used as a coaling-station, and protected against cruizers (2139, 2143, 2144), but the probable importance of the port in war is not sufficient to warrant any considerable expenditure (2142), especially as defence works would entail the maintenance of a garrison during peace (2148). By blockading the harbour an enemy could be pre- vented from keeping up a supply of coals there (2146, 2147). The Sound should be carefully examined to ascertain whether it could be defended against cruizers by a small work (2140).

New Zealand. In time of war, Her Majesty's ships would require coal in New Zealand, where coaling- stations should be protected (216, 2187).

Fiji.—The Fiji Islands, the only British possession between Vancouver Island and Australia, would be a coaling-station for Her Majesty's ships in time of war (1694, 1695, 1701, 2188).

Cocos.-The Cocos or Keeling Islands, a coral group situated about midway between the Bay of Bengal and Western Australia, and also on the route between the Straits of Sunda and the Cape of Good Hope, have a good harbour. Ships seldom touch there, but the harbour should be used for coaling during war (1627, 2131-2137).

Singapore Singapore should be as strong as it is capable of being made (2201, 2218).

Hong Kong. Further defence is required at Hong Kong, which ought to be thoroughly protected (1658, 2201, 2229).

Port Hamilton. An additional station in the neighbourhood of the Corea is required, having regard to the position of Russia (1653, 2224). The island of Port Hamilton, between Corea and Japan, and distant 1,000 or 1,200 miles from Hong Kong, is well adapted for the purpose (1653, 1657, 2227). Port Hamilton should be taken possession of at once, and made a first-class fortress. It has a good harbour, easily defensible (2221-2224). The island belongs to Corea, a semi-barbarous dependency of China (1653, 1655, 2226). Its acquisition would excite the political jealousy of Russia (2225). Tsu Sima, in the middle of the Corean Strait, has a good harbour. Being populated, and belonging to Japan, there would be greater difficulty in gaining possession (2228). The Russians lately contemplated establishing themselves there (1656). We have no territorial rights at Nagasaki or elsewhere in Japan (2231, 2232).

Labuan.-Labuan is important on account of the coal found there (1659, 1660, 2237, 2210). The coal is reported to have improved in quality lately (2238, 2239). Her Majesty's ships coal at Labuan, which should be defended as a second-class coaling-station (2238). Singapore and Hong Kong, though supplied from England (2241), might in war be supplied from Labuan and Australia (2213, 2244). The approach to Labuan is easy, and the anchorage, which is close to the shore, could be protected (2245-2247). With the existing stations defended, and the addition of Port Hamilton, we should be sufficiently provided with naval stations in the China seas (1658, 1661).

The Pacific.-We have no naval station on the west coast of America between Vancouver Island and the Falkland Islands. These two places should be thoroughly protected (1662, 1665), and coaling facilities increased (2248, 2251),

Esquimalt. Esquimalt is the best place for a station in Vancouver Island. The harbour is superior to Nanaimo, being easy of access and capable of defence. The naval establishment is important, but is not in the best position (2261-2266). Esquimalt may

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