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and the hulks destroyed. The measures to be taken to carry out these proposals are at present the subject of correspondence between the Colonial Office and Admiralty. In the meantime, the general arrangements proposed in the Scheme are concurred in, except that hulks should not be sunk on the top of the unfinished moles, as suggested in paragraph 23, unless by desire of the Senior Naval Officer.

The petroleum, which presumably is required for illumination purposes in the Fortress, should be stored where it would not be liable to be destroyed. Quarry Bay would appear to be a better place than the North Front.

10. Paragraphs 24 and 25 of the Scheme deal with the subject of harbour Regulations. Paragraph 24, which gives the general control of the entire harbour in war to the Senior Naval Officer, is concurred in; but with regard to paragraph 25, which states that the special instructions with regard to the examination of vessels wishing to enter the bay have but little application to Gibraltar, attention is called to the Report of the Local Joint Naval and Military Committee, dated the 25th January, 1894, which recommended that all vessels entering the bay should be met by a steam-launch, and not allowed to pass to the northward of Europa Point without being examined. This recommendation was concurred in by the Colonial Defence Committee, pending the completion of the new harbour when modification might be necessary, and subject to certain modifications contained in paragraph 1 of the Committee's Remarks, dated the 9th May, 1894.

The examination line and the signalling arrangements in connection with the examination of vessels should be entered in the Scheme.

The name of the vessel which would be utilized for examination purposes should be stated. It is thought that a larger vessel than a launch would be required.

The responsibility of "bringing to" every arrival from seaward will rest on the examining vessel, which will carry out her duties of identifying ships as far outside the "examination line" as the state of the weather and other circumstances will permit. Should the stranger, from ignorance or treachery, attempt to evade the examining vessel, the latter would signal to the batteries, and they, irrespective of any examination line, would "bring her to" either by a signal, or, if this was ineffectual, by firing at her. In the event of no signal being received from the examining vessel, or in her temporary absence, any ship proceeding at speed towards the examination line may be presumed to be hostile, and must be "brought to" by the batteries, and as soon as she is on that line treated as an enemy. The examination line should therefore be drawn from a battery to prevent any mistake as to the position of the approaching ship, so that the crossing of the line may be instantly followed by the fire necessary to stop or sink her.

TJ

Miscellanea.

11. An important point, which appears to require further consideration both from the Governor and the authorities in England, is the money demand which will be made on the Treasury at first outbreak of war. It is understood that a sum of about 140,000l. is deposited in the Government Savings Bank by inhabitants of Gibraltar, and that this sum is almost entirely invested in England.

In the event of the exodus from the Fortress which is anticipated at the commencement of hostilities, a large number of depositors would desire to withdraw the sums standing in their names. At the same time, there would probably be a run on the Anglo-Egyptian Bank, so that it would not be possible to count on that bank for more than the Government cash balance.

If Spain were not hostile, it would be possible to send specie to Gibraltar through that country, but if we were at war with Spain it would be necessary to send it by sea.

If the refugees migrated to Morocco, they might be directed to obtain their money from the British Minister at Tangier, but it is improbable that he would be able to meet any large demand.

The whole question requires to be carefully considered under the two sets of conditions: Spain neutral and Spain hostile.

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