A.—7

18

APPENDIX.

Memorandum from the Prime Minister of Cape Colony and Natal to the Board of Admiralty. London, Bth July, 1902. The enormous preponderance of the Native population in the Colonies of the Cape and Natal renders it impossible for us to agree to any proposal involving the obligation to furnish a military contingent in the event of a war in which the Imperial Government may be involved in any other part of the Empire. Eecognising, however, as we do, the absolute necessity for the maintenance of an efficient navy if the Empire is to be held together, and regarding the navy as the first security for the preservation of the people of South Africa, and especially of those residing in the two coast colonies, we are prepared to submit to the Legislatures of our respective colonies Bills providing for contributions towards the cost of maintaining the Imperial navy. At present the Cape Colony contributes, under an Act of Parliament passed in 1898, the sum of £30,000 a year for that purpose. So soon as Parliament assembles, a Bill will be submitted raising that sum to £50,000. To the Legislature of Natal a Bill will be submitted providing for a yearly contribution of £35,000. At a later period, when a Confederation has been established in South Africa, the question of training men residing in the two coast colonies for service in the Imperial navy will be brought under the consideration of their respective Legislatures, who will, we believe, be prepared to entertain such a proposal most favourably. J. Gordon Sprigg. A. H. Hime. Letter from the Admiralty to the Prime Minister of Cape Colony. Sir,— Admiralty, 11th August, 1902. I am commanded by my Lords Commissioners of the Admiralty to inform you that they have laid before His Majesty's Government the paper signed by yourself and Sir Albert Hime, in which you recognise the absolute necessity for the maintenance of an efficient navy if the Empire is to be held together, and announce that you are prepared to submit to the Legislature of Cape Colony, as soon as it assembles, a Bill providing for an increase in the contribution towards the cost of maintaining His Majesty's navy from £30,000 a year to £50,000. His Majesty's Government accept with pleasure this spontaneous offer of assistance, and believe that with the united efforts of all His Majesty's subjects, both in the United Kingdom and in the British dominions beyond the seas, the British navy will be in the future, even more than it has been in the past, the protector of, and connecting-link between, the widely extended parts of His Majesty's dominions. I am to suggest to you that, with a view to setting forth the principles which should govern the development of His Majesty's navy, it would be very advantageous to insert, in the Preamble of the Bill which you propose to lay before the Parliament of Cape Colony, words recognising the importance of sea power:—" in the control which it gives over the sea communications, and the necessity of a single navy under one authority, by which alone concerted action can be assured." My Lords notice with satisfaction that you consider that, when a Confederation has been established in South Africa, the question of training men for service in His Majesty's navy will be brought before the Legislature, and that you believe such a proposal would be favourably entertained. To this my Lords attach much importance, as they fear that, unless the British continental dominions beyond the seas retain a personal touch with the British navy, British subjects living far inland may forget that the origin of the Empire depends on the sea, and that for its continued existence it is essential that in all its parts the maritime spirit should prevail. A copy of the letter which has been addressed to Sir Albert Hime on this subject is attached for information. I am, &c, The Eight Hon. Sir J. Gordon Sprigg, G.C.M.G. H. J. Vansittart Neale. Letter from the Admiralty to the Prime Minister of Natal. Sir,— Admiralty, 11th August, 1902. I am commanded by my Lords Commissioners of the Admiralty to inform you that they have laid before His Majesty's Government the paper signed by yourself and Sir J. Gordon Sprigg, in which you recognise the absolute necessity for the maintenance of an efficient navy if the Empire is to be held together, and announce that you are prepared to submit to the Legislature of Natal, as soon as it assembles, a Bill providing for a yearly contribution of £35,000 towards the cost of maintaining His Majesty's navy. His Majesty's Government accept with pleasure this spontaneous offer of assistance, and believe that with the united efforts of all His Majesty's subjects, both in the United Kingdom and in the British dominions beyond the seas, the British navy will be in the future, even more than it has been in the past, the protector of, and connecting-link between, the widely extended parts of His Majesty's dominions. I am to suggest to you that, with a view to setting forth the principles which should govern the development of His Majesty's navy, it would be very advantageous to insert, in the preamble of the Bill which you propose to lay before the Parliament of Natal, words recognising the importance of sea power:—" in the control which it gives over the sea communications, and