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proceed to Auckland in March last for the purpose of holding the first examination there. Just as they were on the point of leaving Wellington, however, the Government received a memorial from shipowners, masters, and others in Auckland, urging that local examiners should be appointed for that port. The desire of the memoralists was at once complied with, as the Department wag fortunately able to secure the services of two gentlemen in Auckland, of high character and standing as nautical men—Lieut. Tilly, retired Navigating Lieutenant, R.N., and for many years master of the Mission schooner "Southern Cross," and Captain Clayton, Marine Surveyor. Examinations are now held there once a fortnight. The Department has been equally fortunate in securing the services of two gentlemen of acknowledged ability and experience in Otago, to act as Examiners. On the 6th instant, Captain Thompson, Harbour Master, and Captain Orkney, Deputy Harbour Master, at Dunedin, were appointed Examiners for that port; both of these gentlemen have had long service as masters in the Mercantile Marine, and hold Certificates of Competency from the Board of Trade. In last year's report, I enclosed copy of the letter in which the Regulations for Examinations of Masters, Mates, and Engineers, were forwarded to the Board of Trade, and I now beg to transmit herewith a copy of the reply to that letter, from which it will be seen that the Board of Trade exercise a most vigilant supervision over the Regulations issued in the Colonies, in order to provide that the examinations shall be conducted so as to be equally efficient with the examinations which are held in the United Kingdom. In compliance with the stipulations contained in the letter referred to, amendments in the Regulations to remove the objections of the Board of Trade to certain parts of those issued in January, 1872, were made by Order in Council, and promulgated on the 2nd January last; and provision has been made in a Bill now before the Legislature to render Certificates granted in New Zealand subject to the provisions of the Imperial Merchant Shipping Act relating to Naval Courts, so that when this provision becomes law the Regulations will, I have no doubt, be entirely satisfactory to the authorities in England. I have, &c, William Seed, The Hon. the Commissioner of Customs, Secretary of Customs. &c, &c, &c.

Enclosure. (No. 6288.) Board of Trade, Whitehall Gardens, 10th Julj, 1872. Sic, — Colonial Ceetificates. I am directed by the Board of Trade to acknowledge the receipt of your letters, Nos. 357 and 358, of the 13th of April, and No. 361, of the 17th of April. "With reference to your letter, No. 357, detailing the steps which have been taken by your Government for the examination of Masters, Mates, and Engineers, with a view to obtaining the extension of the provisions of section 8 of " The Merchant Shipping (Colonial) Act, 1869," to New Zealand, I am directed by the Board of Trade to inform you that as, with a few exceptions, the Eegulations as to qualifications, &c., of which you have forwarded copies, appear to be identical with those in force in the United Kingdom, the Board of Trade propose to advise Her Majesty to issue an Order in Council in accordance with the provisions of the Act referred to. ' . In taking this course, the Board are actuated by the belief that the Government of New Zealand will be ready at once to make such alterations and additions to their Regulations as will make them identical with those in force in the United Kingdom. If these alterations and additions are not made, this Board may feel it their duty to advise Her Majesty to revoke the Order. They are as follows : —ln paragraph 5 of the Eegulations, after the words, " Certificates will only be granted to persons who have been domiciled in New Zealand for at least three years," should be added the words, " immediately preceding the application." With reference to the latter part of paragraph 7, the commercial code of signals, now termed the International Code of Signals, &c, is no longer treated as a subject of seamanship, but as a subject of navigation, to which it should be transferred. Candidates are now required to pass a satisfactory examination in this subject, failure in doing so involving the same consequences as failure in any other subject of navigation. With reference to paragraph 10, in addition to the questions as to the nature of the attraction of the ships iron upon the compass, &c, certain questions relative to the deviation of the compass are required to be answered by candidates for Masters' Certificates. These questions, together with instructions relating to them, are contained in a circular, No. 517, of which copies are sent herewith. It may be mentioned that candidates for certificates as extra master are now required, in addition to the other subjects of navigation contained in paragraph 11 of your Eegulations, to pass in compass deviation in accordance with the requirements contained in circulars 41-1 and 329, of which copies are also forwarded. The rules contained in paragraph 20, regarding re-examination of Masters and Mates in case of failure, appear to be taken from the Imperial Eegulations relating to the failure of engineers, instead of from those relating to the failure of masters and mates. The latter are as follows :—" In all cases «.

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