Enclosure 3 in No. 7.

COMMODORE SEYMOUR TO GOVERNOR GORE BROWNE.

" Pelorus," Auckland, 'September 17th, 1861. Sir,— I have the honor to forward to your Excellency a letter which has this moment reached me rom the Colonial Secretary of New Zealand, and as I decline entering into any correspondence fwith the Colonial Authorities while your Excellency is at the Seat of Government, I request that you will be so good as to inform Mr. Fox that his proposal is inadmissable*: that the amount of £5000 will not give two mouths' Colonial allowance, at the Melbourne rate, to the ships which were serving in New Zealand since June 1861, and are now on this coast, and that, drawing for a smaller sum, as Mr. Fox proposes we should do quarterly, would be simply ridiculous, as the amount which each seaman would receive would be about 11s., a sum unworthy of their acceptance: also that the £4000 voted in July last, with the understanding that no more was to be asked for a twelve-month gave two months' allowance at the Sydney rate (an unfair one to the lower grades in my opinion) to the ships then on the station and it was paid at once and in one sum. With reference to Mr. Fox's allusion to the Colonial steamer " Victoria," I beg to inform you that the number of her crew never exceeded 80 men, that of the "Harrier" which has re-placed her is 170. I have not the slightest objection to the Colonial Government being informed that the ships among which the allowance will be distributed, should I accept it, will be the " Pelorus," " Miranda," " Harrier," " Cordelia," and " Fawn" (of these the "Pelorus" has served fifteen and a quarter months in New Zealand waters, the " Cordelia" fourteen months, the " Fawn" ten mouths, and each has received two months' Colonial allowance, and the " Miranda" and " Harrier" have been on the station since May last, and have received no Colonial allowance whatsoever); but the distribution must be left to myself, and vouchers for the several payments shall be sent in as they were on the former occasion. I will not trust myself to comment in detail upon the Colonial Secretary's letter or the spirit which it evinces, further than by saying that the latter presents a marked contrast to that in which the Eoyal Navy have invariably been treated by the Colonial authorities of New South Wales and Victoria in similar matters. I am willing to accept the grant of £5000 on the same terms as the grant of last year, namely, that no further claim shall be made until July of the following year. I have, &c, His Excellency Colonel Gore Browne, C.8., F. Beauciiamp Seymour, &c., &c, &c. Commodore. Governor of New Zealand.

Enclosure 4 in No. 7. MEMORANDUM BY MR. FOX. 18th September, 1861. : Ministers are of opinion that, provided the Colony is guaranteed against any fresh demand on the score of Naval allowances for the current year, payment of the whole sum may be made to the Commodore, to be distributed by him at his own discretion, as the Colonial allowance for the whole year for all ships which, during that year, may be on the New Zealand station. It appeal's that there are five ships at present in these waters ; last year there were four of; Her Majesty's ships and the Colonial vessel of war, the " Victoria." As Commodore Seymour appears to consider the larger complement of men in the " Harrier" as justifying it, Ministers recommend the increased payment. Ministers take this opportunity of observing that nothing can be more unsatisfactory than the present mode of paying Colonial allowances. They would suggest that the present correspondence be transmitted to the Home Authorities, pointing out the fact, and requesting that the Colonial Government may be relieved from their present position by paying to the Imperial Government or to such person as they may appoint, any sum which may hereafter be voted by the Legislature, should such vote be made. William Fox, Colonial Secretary.

Naval Allowances AMent!, 11 '"• Governor.

Enclosure 5 in No. 7. MEMORANDUM BY ME. FOX. 18th September, 1861. In his letter to your Excellency of the 17th instant, Commodore Seymour "declines entering " into any correspondence with the Colonial Authorities while your Excellency is at the seat of " Government." The Colonial Authorities have no wish to correspond with Commodore Seymour, ar.d would certainly not have done so, had he not himself (notwithstanding your Excellency's being at the seat of Government) initiated a direct correspondence by addressing the Colonial Secretary in his letter of the 11th September instant.

9

MILITARY AND NAVAL ALLOWANCES IN THE COLONY.

A—No. 6a