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clusively for the defence of the South Australian coast. They are also willing to bear the entire burden of land defence; but they think that the liberality shown to Victoria by the Imperial Government in the gift of the Nelson," and the partial gift of the "Cerberus," should be shown to South Australia also, and that they should be helped to the extent of one-half in the pur- chase of the necessary vessels, which they would after- wards maintain at their own cost (4268-4276, 4282, 4283, 4294, 4295). They would have been willing to bear the whole cost, but for the gift of the "Cerberus' to the younger ('olony of Victoria (4284, 4285). If the Imperial Government contributed to the purchase of ships of war, the Colony would doubtless accept the conditions imposed upon Victoria in respect of the "Cerberus" (4286-4288),

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South Australia would join in any arrangement to which the other Colonies assented for contributing to the general naval defence of the Empire (4277-4279), but it is doubtful if they would do so in addition to maintaining ships for local defence (4355). The arrangement should be general, so that the Colonies should know that they were all being treated alike (4280, 4281). It is probable that such an arrangement, or a proposal that the Colony should make a money contribution to the Imperial Government with an understanding that one or two of the Queen's ships should be kept specially for the defence of the Colony, would open the question of representation as con- nected with such taxation-a voice in some form or another on the question of declaring war. The protec- tion of their own coast would appear to the South Australian Parliament the most feasible plan. In any case, they would stipulate that the ships should not quit the waters of the Colony (4351-4353, 4356, 4357).

Trade. South Australian trade is mainly carried in sailing-ships, but steamers are taking their place. Most of the ships come home by the Cape of Good Hope (4298-4301).

Concerted Defence. In time of war, all jealousies between the Colonies would cease, and a sense of common danger would bring about general union. At such a time, representatives of the different Colonies might meet and agree upon some mode of providing for the defence of commerce, but if a meeting were held in time of peace, there would be great jealousy in arranging where the chief command should be. A Conference would be useful if there were apparent danger, and it would be advisable to postpone it to such a time (4346-4350).

Telegraph. The telegraph cable to Port Darwin, which gives communication to the whole of Australia, might be easily cut, owing to the shallowness of the water. The risk of this would in time of war be a danger to the Australian Colonies generally (4322- 4326).

King George's Sound.-King George's Sound, in Western Australia, is a fine harbour, the defence of which concerns all the Australian Colonies. The Peninsular and Oriental Company once had 300,000 tons of coal there, but they have given up the place as a coaling-station, and the stock of coal is exhausted. A mail-steamer still calls there according to a stipulation in the Company's contract (4302–4310).

War Office Assistance.--South Australia has received every assistance from the War Office with respect to their guns and all military questions (4319-4321). The War Office authorities are always ready to supply any information that may be desired with respect to stores, and to furnish copies of their Circulars on appli- cation. It would be a great advantage to the Colonies if they were regularly furnished with copies of the War Office vocabularies and notifications of changes as soon as they occur (4327-4335).

October 15, 1880.

Sir HARRY PARKES, K.C.B., Envoy Extraordinary,

Minister-l'lenipotentiary and Consul-General

Japan.

In

Port Hamilton is a small island with a fishing popu- lation of about 2,000, governed by a local Headman.

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The island is of no political importance or intrinsic value (4367-4372). It is easily defensible (4391), and its acquisition, which was advocated by Admiral Ryder in 1875, and by other Commanders-in-chief on the China Station before and since, would afford protection to our trade in the China and Japan seas, while the danger to our trade of its falling into other hands would be very great (4360-4363, 4365).

The Russians are working steadily south. Their principal station on the Pacific-Vladivostock-is frozen up for two or three months in every year, and no permanent establishment has yet been formed there. They have collected materials for an arsenal, but have not yet fixed upon a position for their permanent establishment. They doubtless desire to obtain some port which would be free from ice all the year round. They would like to have Port Lazaref in Corea, and they have sent single vessels there, but the Coreans have uniformly declined to hold intercourse with them (4420-4438). The Russians would hardly attempt to annex the whole of Corea, but they might try to acquire one or more good harbours on the mainland, or Port Hamilton, to the strategical value of which they are probably alive (4307). Russia has already attained a commanding position on the Pacific (4423). She has at the present time in the Chinese seas three iron-clads and twenty-six vessels of all kinds, including torpedo- vessels and transports. There is a garrison of 4,000 or 5,000 men at Vladivostock, and a force of about 15,000 in Eastern Siberia (4120). The object of collecting so large a force is primarily to coerce China (4422). If Russia reaches the south of Corea she will attain a position of enormous power, commanding Japan on the one hand, and the Chinese sea with Shanghae, our most important place of trade, on the other (4387).

If our ships are to effectually protect our trade, the annual value of which is not less than 50,000,0007. (4425-4427), a coaling-station to the north of Hong Kong is indispensable. Without such a station our fleet could not keep the sea against Russia, and during the seven or eight months of the year in which the north-east monsoon prevails, our Shanghae trade would be at her mercy (4423, 4424).

There are many islands off the coast of Corea, among which good anchorages might probably be found (4419), but Port Hamilton is incomparably the best place for us (4398, 4399, 4401, 4402). Its ac- quisition would give us a post 1,200 miles north of Hong Kong and 350 miles from Shanghae, would place us in a position of command with regard to Japan, China, and Russia, and would afford protection to our trade in those seas (4388, 4389). If Russia advances into Corea, we ought to occupy Port Hamilton. By so doing we should serve Corea and other Eastern Powers as well as ourselves (4400)..

The only means of anticipating Russia would be to endeavour, by establishing a diplomatic mission (4412- 4414) to open relations with Corea, and treat for the purchase of the island.

The Coreans object to any communication with Europeans, and we have no power of instituting relations (4403-4406). Corea is isolated, except from Japan and China. It would be useless to try and negotiate through the Japanese (4407). All attempts made by various nations through Japanese officers have failed (4435). There would be a better chance of our receiving assistance from the Chinese. The Coreans look up to the Chinese, but down on the Japanese. China also is beginning to see the impor tance to her of Corea not falling into Russian hands, and would favour anything which had a tendency to prevent it (4430). Corea, though nominally a vassal of China, is practically independent. Neither China nor Japan would object to our acquiring Port Hamilton. The Coreans would doubtless resent it at first (4373– 4384). Though afraid of territorial encroachment, they might be willing to part with the island if a sufficient inducement were held out. They are poor, but would not be tempted by anything but a sub- stantial sum of money (4381, 4382, 4408-4411).

Corea contains a population of 8,000,000, and access

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