41

A.—7

APPENDIX Al. Table showing the Annual Cost of Maintenance, exclusive of First Cost of Building, of the British Squadrons in (1) Atlantic Ocean ; (2) Eastern Seas and Pacific Ocean : — (1.) Atlantic Ocean. £ North America and West Indian ... ... ... ... 330,000 Cape of Good Hope... ... ... ... ... ... 396,000 South-east coast of America ... ... ... ... ... 76,000 Total ... ... ... ... ... ... 802,000 (2.) Eastern Seas and Pacific. £ China ... ... ... ... ... ... ... 1,430,000 East Indies ... ... ... ... ... ... 303,000 Australia ... ... ... ... ... ~, ... 312,000 Total Eastern Seas .. ... ... ... ... 2,045,000 Pacific ... ... ... ... ... ~. ... 202,000 Total ~, ~, ... ... ... ... 2,247,000

APPENDIX V. (1).

1900.—NEW ZEALAND.—DEFENCES OF THE COLONY. Statement by the Right Hon. R. J. Seddon, Premier and Minister of Defence, respecting Harbour Defences, Colonial Defence Forces, Imperial Reserve, Cadet Corps, Rifle Clubs, and other matters connected with the Defences of the Colony. Mr. Speaker,— Honourable members will, I hope, agree with me that it is consistent with one's duty to the Empire and to the colony, and not out of place, to give attention at this juncture to the allimportant subject of our defences, and, if possible, to evolve a means of perfecting, extending, and strengthening the same, both for internal and external purposes. Lessons taught by sending Contingents to South Africa. The equipping and sending of our contingents, and the lessons taught by the war in South Africa, must not be ignored. We must not be blind to the altered conditions that have arisen during the last few months, and which at present may appear trifling, but which in years to come may be a source of anxiety to the colony and to the Empire. Altered conditions. There are also eventualities that may arise in connection with the adjustment of affairs in China; and, taking the outlook as a whole, it is prudent for us to complete our harbour-defences, increase and fully equip our Volunteer corps, give a military :raining to our youths, encourage rifle clubs, and, in addition, create a reserve force equal to any emergency. Want of capital. The chief drawback has been the finding of the capital required for the completion of our harbour-defences, the equipment of the defence forces, the purchase of great and small arms and munitions of war. Important as these are, still the opening-up and roading of our land, the construction of railways, and the development of our industries have been such a tax upon our resources that expenditure in regard to harbour-defences, defence forces, rifle clubs, and cadet corps has had perforce to be curtailed. Ways and means. Interest and sinking fund. I therefore, with much reason, urge that it would be of advantage to the Mother-country and to the colonies if the moneys required for harbour-defences, and for arming the defence forces, were raised by the Imperial authorities, and advanced to the colony, which should pay interest thereon at the rate of 3 per cent, per annum. In the calculation of this interest the difference between the rate at which the colony could raise the moneys and the rate at which it is obtained by the Imperial authorities would form a sinking fund to pay off the principal within a reasonable time. Eeserve an advantage. The proposal that the Imperial authorities should find the capital is warranted by the fact that the imperfect defences of the colonies would be remedied. There would also be the direct advantages to the Imperial authorities and the Empire in having a reserve force established ready for any contingency that might arise, and in having the most modern guns and small arms in the colonies, to the use of which our forces would be trained, and be available whenever required. 6—A. 7.