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The Provincial Government in taking any steps in the direction they have indicated, do not desire to disturb this classification, and would therefore be prepared within certain limits to extend the benefit of extra aid to both classes, giving as far as possible preference to those nominated by name. Again, in order to avoid the introduction of too large a number of any particular calling or trade, the Provincial Government would propose to furnish the Immigration Officer with a list specifying the maximum number of any one vocation to whom they would within a certain period grant extra aid. The Provincial Government will also take into their consideration whether it would be expedient to call upon those who nominate by vocation to enter into an undertaking to give the immigrants so introduced employment when they arrive, but we are at present of opinion that such restriction would not be necessary. In case the General Government adhere to their former decision not to grant free passages to any class of nominated immigrants, and would prefer that the Provincial Government should deal directly with persons wishing to nominate, we would merely remark that in doing so the Provincial Government would be prepared to make arrangements accordingly, and under such regulations as we believe would meet the views of the General Government. We have, &c, Walter Kennaway, Joseph Beswick, Members of the Executive Council of the Province of Canterbury. The Hon. the Colonial Secretary.

Enclosure 3 in No. 8. The Hon. the Colonial Secretary to the Members of the Executive Council of Canterbury. Colonial Secretary's Office, Gentlemen, — Wellington, loth July, 1873. I have the honor to convey to you the decision of the Government upon the important questions in relation to immigration raised by the resolutions of the Provincial Council, by the telegrams of His Honor the Superintendent, by your personal interview with the Premier and the Minister for Immigration, and by your letter of the 3rd July, addressed to the Colonial Secretary. 1. Upon the question raised by resolutions, the Government had no difficulty in coming to the conclusion already telegraphed to His Honor the Superintendent, viz., if the Province appoints and pays for an agent to select immigrants at home, the Agent-General will be instructed to give to the immigrants selected, subject to his approving the selection, passages on the ordiuary terms. Further than this the Government do not see their way to go, without involving the contingency of making the charge of immigration a Provincial instead of a General Government responsibility. The cost of immigration being now a Colonial charge, the General Government have to endeavor to apportion the immigrants to the various parts of the Colony in tho manner which appears to be at once beneficial to the Colony as a whole, and fair and equitable to the different portions of the Colony, the contributions from which make up the colonial revenue. Until the question was raised by the Province of Canterbury, the necessity for deciding between the claims of various portions of the Colony had afforded no practical difficulty, for the funds at the disposal of the Government, and the number of immigrants they desired to introduce, were such as to have induced them to invite from the Superintendents of the various provinces statements of the largest number of immigrants, the introduction of whom they were prepared to recommend, and in all cases the recommendations were accepted, in addition to liberal provision being made for nominated immigrants. The Province of Canterbury evinces a laudable desire to spend some of its very large means upon immigration, and in a very becoming spirit it invites the concurrence of the General Government in that expenditure. In dealing with the question thus raised, the Government have to consider how Canterbury may, without injustice to the rest of the Colony, expend the funds it desires to devote to immigration. Clearly, if it were permitted by the payment of a small sum to induce the General Government to contribute the major portion of the cost of the passages of a number of immigrants, in excess of the number that would otherwise be assigned to Canterbury, an injustice would be done to the rest of the Colony. Therefore the Government have come to the conclusion that they can only concur and sanction any expenditure on the part of Canterbury for immigration in one of two ways. Ist. As indicated in your letter, by such amount of money assistance as the Province may desire to render through its agent at home to secure for Canterbury the number of immigrants within the year, not exceeding the limit determined on by the General Government. 2nd. If the Province desired a larger number of immigrants than the General Government considered it fair to the rest of the Colony to bring to Canterbury at the cost of the Colony, the Government would only concur in the number being increased by the Province paying the total cost of such increase.