Solomon Islands if she means to regain the prestige which she has lost owing to the Germanic policy of annexation in the Pacific.

In order to firmly establish her power in this quarter, Germany, in 1885, raised a quarrel with Spain concerning the sovereignty of the Caroline and Pelew Islands, but this quarrel was composed by the mediation of the Pope.

Frederick the Great "preferred regiments, as a ship cost as much as a regiment." Bismarck preferred "the Greater Germany," and his policy was "the German trade with the German flag" (i.e., the German flag shall go where German trade has already established a footing). This policy proved very successful, not only in the West Pacific, but also in the North Pacific and the eastern coast of Africa. Germany now is the chief colonizing rival of England.

In 1883 Mr. Chester annexed all the parts of New Guinea with the adjacent islands lying between 141 deg. and 155 deg. of E. long. Lord Derby, however, annulled this

annexation, regarding it as an unfriendly act, and he also assured the Colonial Government that "Her Majesty's Government are confident that no foreign power contemplates interference in New Guinea." This occurred

in May, 1884. But this prognostication did not prove true, for in November of the same year Germany occupied New Guinea.

This caused much public indignation in the English colonies against the Home Government, and the public of England recognized that the reasons and complaints of the Australian Colonies were right and just.

The movement of Imperial Federation sprang up in England, the chief object of which was "a closer association between the Colonies and Great Britain and Ireland for common national purposes such as colonial and foreign policy, defence and trade." The result of this was the Colonial Conference in 1887; and Lord Salisbury, offering a hearty welcome to the Colonial delegates, said: "I do not recommend you to indulge in schemes of Constitution making;" but also said: "It will be the parent of a long progeniture,

and distant councils of the empire may, in some far-off time, look back to the meeting in this room as the root from which their greatness and beneficence sprang."

The following subjects were submitted for discussion: (1) The local defence of ports other than Imperial coaling stations; (2) the naval defence of the Australian Colonies; (3) measures of precaution in relation to the defences of colonial ports; (4) various questions in connection with the military aspects of telegraph cables, their necessity for purpose of war, and their protection; (5) questions relating to the employment and training of local or native troops to serve as garrisons of works of defence; and, lastly (6), the promotion of commercial and social relations by the development of our postal and telegraphic communication.

Thus, by means of this Conference, the military federation of the British Empire was established. By its efforts the English squadron in the China Sea and in the Australian seas are more closely connected together than they have been before, and, if

needed, the English forces in the North Pacific would be reinforced by Australian troops. We saw an instance of this in the late Egyptian campaign.

One more question remains to be ventilated, viz., whether England is able to secure absolute power in the North Pacific with the naval and military forces she has at her command there, using Hong Kong as the centre of war preparations.

I answer in the negative. It could be maintained only by an occupier of the Island of Formosa, the "Malta" of the North Pacific, which lies between the North China Sea and the South China Sea. Its area is estimated at 14,978 square miles. It has a healthy climate, tempered by the influence of the sea and its mountains. Coal is to be found in considerable quantities, although not of the best quality. Its natural products are plentiful, such as sugar, tea, and rice. It possesses several good harbours, one of which, Tam-sui, or Howei, is surrounded by hills upwards of 2,000 feet high, and has a depth of 3 fathoms with a bar of 7 feet.

From this island, with a good navy, any power almost might be exerted over the North and South China Seas, and over the Pacific highways from Hong Kong to Australia, Panama, Nicaragua, San Francisco, Vancouver, Japan, Shanghai. All these are in fairly close proximity to Formosa, and the Shanghai route to Hong Kong actually runs between the island and the China mainland.

There remain still two or three more facts which must not be neglected in order to obtain a fair view of this important question.

(a) It is a fine post for any offensive attack upon China, and also a stronghold for an attack upon the British power in the Pacific. If fortified and defended by a navy from any other power, Formosa would prove a great rival to Hong Kong, which would lose at least half of its importance, commercially and strategically, and which has already been somewhat weakened by the French Occupation of Cochin China, in 1882.1

I The whole history of the French in the East is indissolubly bound up with the history of their efforts to destroy our Eastern supremacy. Mauritius was occupied