B.—No. 4

10

PAPERS RELATIVE TO

the exception of those of the Colony of New Zealand itself, and they will be prepared to consider any application which may be made to them with this view from the trustees of the sinking fund. I have, &c., The Under Secretary of State for the Colonies. Geo. A. Hamilton.

Enclosure No. 10. The Hon. W. Fitzherbert to Messrs. Julyan and Sargeaunt, Trustees for the Sinking Fund of the New Zealand Loan, 1856. Gentlemen, — 21, Cockspur Street, S.W., 13th January, 18C9. I have the honor to enclose copies of Memorandum and correspondence relative to the investment of the sinking fund of the first half-million of New Zealand debentures guaranteed by the Home Government, and raised under " The New Zealand Loan Act, 1856," and Imperial Act c. LI., 1857." I would suggest that investments of these funds might be advantageously and safely made in the Government securities of India, and debentures of the under-mentioned Colonial Governments— Victoria, New South Wales, South Australia, Canada, or Ceylon. It would be a particular satisfaction to me to be able to know, before I left for the Colony, that these funds had been so invested. I have, &c., Messrs. Julyan and Sergeaunt, Trustees William Fitzherbert. for the Sinking Fund of the New Zealand Loan, 1858.

Sir Frederic Bogers to the Hon. W. Fitzherbert. Sir, — Downing Street, 19th February, 1869. With reference to the letter from this department of the Bth ultimo, I am directed by Earl Granville to acquaint you that the Lords Commissioners of the Treasury have signified their consent to a discretionary power being given to the Crown Agents for the investment of the sinking fund of the New Zealand Loan, 1856, in Colonial securities ; but their Lordships consider that the investments should be confined to the debentures of Canada, New South Wales, Victoria, and South Australia. Their Lordships' decision applies to the sum already accumulated, as well as to the sums hereafter received. A communication to this effect has been made to the Crown Agents. I have, &c, The Hon. W. Fitzherbert. Frederic Bogers.

Enclosure No. 11. Sir F. Bogers to the Hon. W. Fitzherbert. Sir,— Downing Street, 28th March, 1868. I am directed by the Duke of Buckingham and Chandos to inform you that Her Majesty's Government have had under their consideration the claims advanced on behalf of the British Treasury against the Government of New Zealand, and the counter claims put forward by Major Bichardson in respect to the cost of military operations in that Colony. It appears to them that a careful scrutiny of these claims would result in establishing a considerable balance as due to the British Treasury. But they are aware that this scrutiny could not be effected without protracted correspondence between this country and New Zealand ; and at a time when the Colony has adopted the entire responsibility for its own military protection, and is endeavouring to contract a loan of unusual magnitude, they are unwilling to defer a settlement which may assist you materially in negotiating that loan. Having reference, therefore, to Mr. Stafford's Memorandum of the 7th November last, by which the Duke of Buckingham and Chandos was informed that you were proceeding to England with a view " to the settlement of all claims between the Imperial Government and the Colonial Government," His Grace desires me to ask whether you are prepared, on behalf of the Government of New Zealand, to abandon all claims on the Home Government in respect to any expenditure arising out of military operations or connected with military defence, and particularly all claims included in or resulting from either of the statements of account put forward by Mr. Commissary-General Jones and Major Bichardson, on condition of a similar abandonment on the part of the Imperial Government. If this should be the case, Her Majesty's Government are prepared to agree to a settlement on these terms. But it must be understood that if a prompt settlement cannot be thus effected, Her Majesty's Government retain the right to pursue the investigation which has been commenced, and to •claim the balance which on that investigation shall be found to be justly due. I am, &c, The Hon. W. Fitzherbert. Frederic Bogers.

Enclosure No. 12. The Hon. W. Fitzherbert to Sir F. Bogers. Oxford and Cambridge Club, Pall Mall, Sir,— London, 30th March, 1868. I have the honor to acknowledge the receipt of your letter of 28th March, 1868, in which I am informed that the Duke of Buckingham and Chandos desires to ask whether I am prepared, on behalf of the Government of New Zealand, to abandon all claims on the Home Government in respect of all expenditure arising out of military operations or in connection with military defence, whether included in counter claims, already preferred or proposed to be made, on condition of a similar abandonment on the part of the Imperial Government.