I enclose report of Ordnance Committee of which I approve. However, as the matter involves a financial question, your opinion thereon would be of great value.

Report of the Quartermaster-Gen., to be forwarded to Inspector-Gen. of Fortifications.

Can offer no suggestion about the cost of production until it can be ascertained whether the Cannonette will be suitable for Home Defences. What is your opinion on this point?

Report of Inspector-General of Fortifications, to be forwarded to Secretary of State.

No doubt the Cannonette might be used in a variety of ways. But it will be observed that the Ordnance Committee raised the question of expense—a matter that scarcely concerns my Department.

Memo. of Secretary of State, to be forwarded to Financial Secretary.

Please read inclosed Report, and send on.

Report of Financial Secretary, to be forwarded to the Director-General of Ordnance.

It is premature to consider the question of expense until it has been decided that the introduction of this Cannonette will be of advantage to the Service. The Ordnance Committee use the words, "Might possibly," which are not, in themselves, a strong recommendation. It must be borne in mind that the Army Estimates must be calculated with the greatest attention to economy.

Report of Director-General of Ordnance to Commander-in-Chief.