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in view and to provide in the best-considered and most economical manner for their early execution, in order to carry out to its legitimate conclusion the complete scheme of defence. The development of means of defence for harbours appears to reach no final stage, and the unexpectedly accurate and destructive effect which can be attained by " high-angle " fire from guns of an elongated howitzer description against hostile vessels has recently been brought into prominence. The irregular ground, along the shores of our harbours affords choice of good sites for the more or less masked emplacement of some of these guns, the collateral works necessary for which are of an inexpensive character. The whole of the guns ordered have now been delivered in the colony. The discharging of the heavy Bin. guns, weighing over 13 tons each, with their complement of 30 tons more each of heavy appliances and gear, their conveyance from the ships in which they were brought out to the various jetties used for supply of the defence-works, their subsequent haulage up severe and long inclines, and eventual mounting in the pits prepared for their emplacement, have embraced a series of operations requiring much precision, care, and management. The guns are of an altogether new type, and there is no exact precedent upon which to base arrangements for either their transport or mounting; and they had to be both transported over and mounted in awkward places. Although the tackle was improvised, the men unaccustomed to the work, and the appliances generally of a somewhat primitive character, no hitch or accident of any kind has occurred throughout the operations, which have in every case been successfully and rapidly conducted. The experience now gained may be taken as assurance that those of the guns which are-yet unmounted will be emplaced, when the works for which they are intended are ready to receive them, with the same success and freedom from accident. Fair progress has been made with the completion and equipment of the various submarine mining-stations, and with the study and preliminary surveys and preparations for the mine-fields. The lines upon which these are to be laid, and the collateral arrangements for electric searchlights, testing- and observing-stations, and subsidiary machine and shrapnel-firing guns for their protection, have recently been again very carefully gone into, and are now finally settled. The delivery of the necessary full equipment of stores has been considerably delayed owing to the inability of the Imperial authorities to meet immediately the various requisitions made some time ago; but most of the stations are now fairly well supplied, and during the ensuing half-year should receive almost their full complement. The whole of the valuable stores and equipments up till now delivered in the colony are in charge of the Torpedo Corps at the various stations. In future harbour-warfare it is confidently held that submarine mining will play the more important and decisive part. The pitch to which the wonderful development of its beautiful and scientific appliances has reached, and the deadly and hidden nature of its action, combine to make the submarine mine a weapon of defence of the first importance. It therefore becomes of equal urgency with the proper completion of the land-works that the submarine-mining stations should be supplied with everything that is necessary and essential for their most complete and perfect equipment, so as to enable the now skilled Torpedo Corps, supplemented by the Naval Volunteers who have undergone training, to lay out the mine-fields in time of danger or fear of war. Neither guns alone nor mines alone provide efficient protection, but in combination they present a very strong form of harbour defence. It is proposed, therefore, if possible, to devote a fair proportion of such funds as may be available during the ensuing year to the proper completion of the stations and of the surveys and accessories of the actual mine-fields. The departure of Sir William Jervois has deprived the colony of his valuable advice and co-operation in its defences ; but his connection therewith has been marked by the strong works on Eipa Island (in which he took an especial interest from the first) being, at the suggestion of the Government and with the permission of Sir William, named Fort Jervois. The steam-launches and all the other plant, gear, stores, and appliances employed in and for the general carrying-on of the defence-works have been maintained in an efficient and satisfactory condition throughout the year. The guns, magazines, artillery-stores, ammunition, Sec, are under charge of the Permanent Artillery, and are reported upon by the Staff Officer. The completed batteries and works when handed over by the construction-branch cease to be under my immediate charge, and are reported upon by the officers of the Artillery. Two of the magazines constructed in 1887 and one or two of the temporary magazines constructed in 1885 have not proved altogether damp-tight. It is proposed to place the defective magazines in a proper condition during the ensuing summer. The laboratories referred to in my report of last year have not been erected, means having been found to carry out the necessary operations successfully without this expenditure : and the available funds were therefore diverted to more urgent works. The advisability of providing these laboratories, however, remains, and should be kept in view. Further information and valuable suggestions connected with the perfection of the equipment and the fighting-powers of the guns in possession of the colony, and embodying also the latest ideas and results derived from experiment and trials of various guns and other means of defence in England, have been forwarded during the year by the Agent-General and General HardingSteward, E.E. There have been no new transactions in acquiring land for defence purposes. The expenditure and liabilities under that head for the year represent dealings with claims consequent upon previous purchases or occupations. To enable certain of General Schaw's recommendations to be carried out it will be necessary to acquire some additional sites, but the expenditure involved will in no case be serious. A return is attached to this report giving particulars of the total expenditure upon the harbour defences of the colony, under some principal subdivisions, from the first steps taken up to the present date. Arthur Bell, 31st March, 1889. Engineer for Defences. 2—H. 16.