52

A.—7

Vl.—Cadets. A cadet military system exists in most of the States, and in one State has reached a very satisfactory standard of efficiency. I attach great value to the military training thus taught and military discipline thus impressed upon the rising generation, and I recommend that the system which has proved so successful in Victoria, under the Military Department, should be similarly developed throughout the Commonwealth. VII.— Manufacturing Departments. Manufacturing departments. It will be necessary by degrees to create those manufacturing departments which are required to form the arsenal for the future maintenance of the defence forces of the Commonwealth. This arsenal should include: —(1) Storage accommodation for reserve stores; (2) grand magazine; (3) small-arms-ammunition factory (including steel-shell foundry) and cordite-factory; (4) smallarms factory ; (5) gun-foundry. A site for the erection of the above will be required where communication by rail and by sea is easily accessible. It is obvious that a supply of coal and iron must be readily available, and that the site chosen could be satisfactorily and readily protected from any possible attack. It is, moreover, necessary that the arsenal should be so situated as to meet the demands of the Eoyal navy in the present, and of the Australian navy in the future. It should accordingly form part of the naval base of Australia. An eligible site could be found in the vicinity of Sydney, which would fulfil all the above conditions. Formation of Commonwealth arsenal. Although the above arsenal will require time to create, a beginning might be at once made by the selection of an eligible site, and by the removal of the artillery workshops now in Victoria Barracks, Sydney. Accommodation for the large amount of stores and equipment required for the Field Force above alluded to should, moreover, be built as soon as may be. Vlll.—Expenditure. The total sum available under the estimates of 1901-2 should be in the first instance sufficient for the present requirements, exclusive of the supply of equipment, &c. (Section III.). The supply of equipment, arms, &c, which is of a pressing nature, might be defrayed from a loan. An approximate calculation of the immediate requirements has been made, by which the sum of, approximately, £500,000 will be sufficient to render the Garrison Force complete and the Field Force capable of carrying out its functions. A table (Appendix A) will be found at the conclusion of this paper which will be of interest. It shows the amount paid for defence per head of population in Great Britain, her self-governing colonies, and by foreign nations. It will be seen that the self-governing colonies contribute a small proportion only to naval and military defence in comparison with the amount paid by Great Britain and other foreign countries: thus Canada pays Is. 6d. per head of population, Australia 4s. 6d., New Zealand 75., and Great Britain 235. 2d. I have, &c, Edward T. H. Hutton, Major-General, Commanding Military Forces of the Commonwealth of Australia. Melbourne, 7th April, 1902.