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18. Page 80 (G), paragraph 5.-The Committee would like to be informed as to what the reserves of gunpowder, which are to remain in the Ordnance Store Magazine at Fort Canning, consist of.

19. Page 80 (G), paragraph 6, and page 82, Table & (ii).—The attention of the War Office and the Station is called to paragraph 17 of the Colonial Defence Committee's Remarks No. 145 (R), dated the 13th July, 1896, on the subject of tools and materials required in connection with the Defence Scheme.

Chapter VI.-Civil Administration, &c.

20. Pages 123 and 124. Management of Civil Population.-This part of the Scheme should now embody any arrangements that require to be made to give effect to the provisions of the Secret Order in Council of the 26th October, 1896, communicated to the Governor in a despatch dated the 14th May, 1897; and the Proclamation as now printed will require some modification to bring the Order in Council into force.

M. NATHAN, Secretary,

Colonial Defence Committee.

(Signed)

July 16, 1897.

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PRINTED AT THE FOREIGN OFFICE BY J. W. HARRISON.-20/7/97.

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Printed for the use of the Colonial Office. July 14, 1897.

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SECRET.

No. 165 R.

CANADA.

Report of the Department of Militia and Defence for the year ended December 31, 1896.

Remarks by the Colonial Defence Committee.

ON the Report of the Department of Militia and Defence for the year ended the 30th June, 1895, the Committee framed their Memorandum No. 59 M, which was sent to the Government of Canada. It has not been apparent from any papers that have come to the Committee, nor is it from the Report now before them that any action has been taken on this Memorandum. At the same time the only opportunity afforded to the Committee of intimating their views as to the organization and training of the Canadian Military Forces is derived from the reference to them of these Reports, and they propose to continue to make observations on them in the hopes that these may ultimately prove of value to the Canadian Government in the same way as they are informed that the Governments of Australia derive assistance from the Committee's Remarks on the corresponding Reports of the Australian Military and Naval Commandants.

2. The information embodied in the Annual Reports of the Departments of Militia and Defence has steadily decreased from the Report for 1886-7 (229 pages), which contained statements of the Staff officers of the twelve military districts and inspection reports of all corps which performed the annual drill, to the Report for 1896 (34 pages), which does not even give the establishments of the active militia. The present document calls for but few remarks as it contains but little information.

3. Page 8.-The net military expenditure of the Dominion for the year ended the 30th June, 1896, was 2,117,816 dollars (say, 423,5631.) against 1,557,020 dollars (say, 311,4057.) for the year ended the 30th June, 1895. The difference is more than accounted for by the large expenditure on re-armament (1,000,000 dollars). A saving was effected on the item of pay which, together with the item for annual drill, amounted to nearly 200,000 dollars less than the pay item (which probably also included the expenditure for drill) of last year. How far the saving was effected by reduction of establishments, and how far by a decrease in training is not clear from the Report. In any event, there appears to be the same tendency in Canada as the Committee have frequently noted in the Australian Colonies to utilize money easily voted when there is probability of war on materiel rather than on maintaining and improving the efficiency of personnel.

The total expenditure is less than that incurred by the Australian Colonies with a much smaller population on their defence, and the expenditure of about 1s. 8d. per

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