9

A.—6

sentative of Her Majesty's naval departments, and it is hoped that the matter would result in the ventilation of the general question of naval defence, and in an advantageous interchange of ideas on the subject as between the Imperial and Colonial Governments. I shall be glad if effect can be given to the wish of Her Majesty's Government that a conference should take place on this subject; and it would, of course, remain with each Government, when in possession of all the facts, whether they would be prepared to make any recommendations to their respective Parliaments, with whom the final decision must necessarily rest. It is proposed that the meeting should be held in Melbourne about the end of this month. Government House, Wellington, Ist March, 1886. Wm. P. Deummond Jeevois.

Enclosure. COLONIAL NAVAL DEFENCES. A Pnficis of the Discussion on Colonial Naval Defences (at Government House, Wellington) by His Excellency the Goveenoe of New Zealand, the Ministebs, and the Admibal. With reference to the meeting held at Government House, called by His Excellency the Governor of New Zealand, and attended by the Premier, Mr. Ballance, Mr. Tole, and Mr. Buckley—the Admiral also being present. The object of the meeting was to discuss the subject of the Admiral's letter on the subject of the war vessels to be provided at the cost of the colonies. That letter (24th December, 1885) was read. The opinion expressed by the Ministers was generally favourable to the proposal; but the whole question involved was reserved till the Cabinet could meet as a whole in February, when it would be formally discussed and a formal reply made. The opinion was also expressed that, in lieu of having to pay a share in the prime cost of the vessels, and in the event of the agreement terminating in ten years, that she could become possessed of her share in the vessels, New Zealand would much prefer to pay an interest on the sum sufficient to recoup the Home Treasury the interest that (1) would have to be paid if the Government at Home raised the money, as well as (2) to form a sinking fund. In such case, should the agreement not be continued over a specified time, the ships would be the absolute property of the Admiralty without restriction. The Admiral explained this question was one beyond his instructions, and necessarily would have to be referred Home. His instructions contemplated that the colonies would pay for the cost of construction, and eventually, at the termination of the agreement, become possessed of the vessels. It being remarked that the ships, when they became old-fashioned, or when new designs were proved to be so superior that ships now built had to be replaced, that the colonies would have no need or use for obsolete vessels, and that they should be allowed to return the old, and new vessels should be substituted. The Admiral remarked that was precisely one of the great difficulties that presented themselves to the Admiralty at Home—what to do with old-fashioned yet by no means worn-out vessels, and the Admiralty were not at all likely to increase their difficulty in this respect by agreeing to withdraw old ships and to substitute new designs. In fact, it would be like a man who, having bought a new pair of shoes and contracted for their repairs, considered that the shoemaker should give him a new pair when those first ordered got worn out of shape or out of fashion. He also showed that, thougli finality as to designs was not attainable, still very fast vessels of limited size were not likely to bo unmarketable or without value for many years to come; and that as to torpedo boats, there might be great improvements, still the total destruction by a vessel by a single blow was a termination of an existence and of a danger, the power to effect which might be increased, but hardly could the consummation be exceeded, and there was no reason to suppose these vessels would not lend themselves to improvements. It was explained, chiefly by the Premier, this was by no means the intention : what ran m his mind was that an estimate of cost should be obtained as to the provision of the force suggested; that the cost of maintenance and an annual interest on the prime cost of material, viz., of the ship complete, which interest should also be sufficient to form a sinking fund, and that the property in the ships should always be with the Admiralty. In this case the restriction as to the employ of the ships in these seas would remain so long as the agreement lasted, and when it terminated the Admiralty would be under no restriction whatever, and the sinking fund would virtually be for the purpose of covering deterioration in the valae of the property. It will be gathered from the above that a conversation of a general character took place with the view to elucidate the questions involved. Among other points, it was shown that if New Zealand contributed to an augmentation of the fleet, she would, at all events in a time of peace, expect to be frequently visited by the squadron, or that vessels should be stationed in New Zealand waters—that those who paid for them might see the result. Wellington, 20th Jauuary, 1886.

Sub-Enclosure. Admiral Teyon to Sir W. Jekvois. Sib, — " Nelson," at Auckland, 24th December, 1885. I am directed by the Lords Commissioners of -the Admiralty to enter into direct communication with your Excellency with a view of obtaining a consideration of questions connected with the naval forces on this important station. 2—A. 6.