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                           modern guns steaming 12 knots would do the work now. The Resident with
                           the Lawrence at Bushire could reach Maskat in 48 hours instead of in’80 in  one
                           of the old Admiralty " tools ” Piracy, as formerly understood, was unknown and
                           ships were little required; all three of them were out of the Gulf looking for
                           slave dhows for 4 months in the year. Captain Hext was of opinion that with
                           another ship like the Lawrence in the reserve, the Sphinx taken over from the
                           Admiralty, and for the Indian Government to do all the work, it would be
                           ingch better done and at a saving of £ 15,000 a year.
                                                          34.. In despatch No. 2, dated the 8th
                                    Pro. No 292. iiiil.
                                                        March 1887, the Government of India
                                                        stated:—
                              *'We have again considered whether some further reduction could not be made, and
                           wc have arrived at the conclusion that the number of vessels may well be reduced to four.
                              One vessel is required hr the Bay of Bengal, another should be stationed at Aden, a
                           third in the Persian Gulf, and there should always be a vessel at Bombay ready for service
                           in the Persian Gulf In this manner the Persian Gulf, the Indian Ocean and the Bay of
                           Bengal would each be watched by a ship of war, and there would always be a vessel in
                           reserve, ready to reinforce or relieve the vessel in the Gulf, or for service elsewhere, if
                           required, and this number wc think sufficient for the ordinary requirements of India so far
                           as our Government is concerned.
                              Wc accordingly recommend that the squadron of six vessels be reduced to four, a
                           proportionate reduction being made in the subsidy of £70,000 which the Government of
                           India arc now required to pay to the Admiralty, the saving then e ffected will amount to
                           £23,332, or about 3 lakhs, and will cover the expenditure which we have to provide for ;
                           thus, without actual increase to the Indian Marine expenditure, admitting of a substantial
                           improvement to the naval defences of India.”
                              35.  In consequence of the difficulties which were, constantly arising between
                                                        the Indian and Home Governments, in
                                External A., June 1SS8. Nos. 25-3$.
                                                        connection with the adjustment of expen­
                           diture incurred on account of the repair, docking, etc., of Royal Navy vessels
                           on the Fast India station, a committee assembled in 1888 and made the
                           following proposals
                                 1.  That 4 vessels be employed continually on Indian waters, of which one
                                      shall always be in the Persian Gulf.
                                2.  That an annual subsidy payment of £.38,500 be made by the Govern­
                                      ment of India to the Admiralty, subject to a deduction of
                                      £28-15-03 day for each vtessel below the complement.
                                3.  That the Government of India pay also the cost of extra coal consumed
                                      when in service under requisition by the Indian authorities.
                                4.  That a further payment of 5 per cent, a year towards replacement be
                                      made on the cost price of the Sphinx, and of any future vessel
                                      constructed under special design exclusively for service in the
                                      Persian Gulf.
                                5.  That when a vessel has been in dock for more than 30 days, she shall
                                      ce<sse to be reckoned in the complement.
                                6.  That all repairs be effected at the cost of the Admiralty, subject, in the
                                      case of vessels that have served in the Persian Gulf, to a propor­
                                      tionate contribution by India.
                                7.  That no charges be made for docking, except where actual outlay
                                      is incurred.
                               36.  Tne Admiralty approved of these proposals, but as it was very probable
                           that the cost would proportionately increase if newer types of vessels carrying
                           more expensive complements wero substituted for the vessels now on the East
                           India station, they were of op:nion that the report of the committee should be
                           adopted for one year, and that the question should be re-opened for any revision
                           of the subsidy which might be necessary.
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