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The enforcement of the Traffic Regulations it regards as "a second phase of the defence dependent on the enemy's vessels being in certain particular waters," and that the laying of submarine mines should also be delayed till this second phase has been entered upon. For the putting in operation of both these defensive measures "competent naval approval" should be obtained "whenever such is available."

The Report assumes that there would at all ports be everything avail- able at a moment's notice for placing mine-fields and Traffic Regulations in operation, which would be the case at ports defended by an establishment of permanently maintained naval and military forces.

Where, as in South Australia, the defence forces are almost entirely militia and naval reserve, such readiness cannot be expected, and the mobilization on the declaration of war should necessarily include all details for enforcing Traffic Regulations and placing mine-fields in a condition of service.

In pursuance of the direction requiring "competent naval approval," I would suggest that the Naval Commander-in-chief be advised of the receipt of this Report XIX by the Local Defence Committee, and that his Excel- lency be asked whether it is to be understood that the Naval Commander-in- chief will issue the Executive instructions for enforcing Traffic Regulations, and placing submarine mines at all the ports in Australian waters.

In accordance with the spirit of the directions in this Report XIX that there should be no impediment to trade, and that all measures of defence are to be based on the protection of commerce, it would, in my opinion, be advisable to obtain, if possible, the views of the Agents of the large English mail-steamer lines as to their intentions of continuing to use the outer anchorage in the event of war, or whether it would be possible for them, when making a stay extending over two or three days, to use the inner harbour. In the latter case, they would be somewhat limited as to draught, and, in the former, fixed berthing arrangements would be necessary. It is, perhaps, unlikely that they will bind themselves to any fixed arrangement, but it will be of value to obtain their views on the subject.

I take this opportunity, while reporting on Traffic Regulations, of recom- mending to the Military Commandant that immediate provision be made for signalling service between ships and the forts, viz. :—

1. Large semaphore capable of being clearly read at from 4 to 5 miles. 2. Large staff and establishment of flags for use with Boat-Signal Book.

I have, &c.

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(Signed)

To the President of the

Local Defence Committee.

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W. R. CRESWELL.

PRINTED AT THE FOREIGN OFFICE BY J. W. HARRISON.—24/12/96.

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