7

A.—2,

Before deciding whether to enter into a similar convention with the German Empire, Her Majesty's Government would be glad to receive any observations which you or your Responsible Advisers may desire to offer as to the general bearing and effect which that particular convention, and other conventions of a like kind with other Powers, would have in the Colony under your Government. A copy of the clauses usually adopted in these conventions is annexed for your information. I may add, with reference to the special convention now under consideration, that Her Majesty's Government have received an assurance that no foreigner is required in Germany to serve in the active army or in the landwehr, and that there is no militia in Germany; and with a view to secure to Her Majesty's subjects a continuance of such privileges, it would appear to be desirable that similar exemptions should be made in favour of subjects of the German Empire in Her Majesty's Dominions. I have, &c., The Officer Administering the Government KIMBERLEY. of New Zealand.

Mexico, South American Republics, Sandwich Islands.

Enclosure in No. 5. XIV. The subjects of each of the contracting parties conforming themselves to the laws of the country, 1. Shall have full liberty with their families to enter, travel, or reside in any part of the dominions and possessions of the other contracting party. 2. They shall be permitted to hire or possess the houses, manufactories, warehouses, shops, and premises which may be necessary for them. 8. They may carry on their commerce either in person or by any agents whom they may think fit to employ. 4. They shall not be subject in respect of their persons or property, or in respect of passports, licenses for residence or establishment, nor in respect of their commerce or industry, to any taxes, whether general or local, or to imposts or obligations of any kind whatever, other or greater than those which are or may be imposed upon native subjects. XV. The subjects of each of the contracting parties in the dominions and possessions of the other shall be exempted from all compulsory military service whatever, whether in the army, navy, or national guard or militia. They shall be equally exempted from all judicial and municipal functions whatever, as well as from all contributions, whether pecuniary or in kind, imposed as a compensation for personal service; and, finally, from forced loans and military exactions or requisitions."

No. 6. Copy of a DESPATCH from the Right Hon. the Earl of Kimberley to Governor the Right Hon. Sir J. Eergusson, Bart. (No. 42.) Sir, — Downing Street, 13th June, 1873. I have the honor to transmit to you six copies of an Act intituled " The Australian Colonies Duties Act, 1873." 2. The telegram sent on 11th Eehruary, by desire of the representatives of the Colonies assembled in conference in Sydney, expressed their earnest hope that Her Majesty's Government would introduce, at as early a date as possible, the necessary measure for giving effect to the wish of the Conference, namely, that those restrictions should be removed which precluded two or more Colonies of the Australian group from entering into arrangements for the admission of articles, the growth, produce, or manufacture of any part of Australia or New Zealand, upon terms to which they might mutually agree. 3. Her Majesty's Government, upon the receipt of this telegram, determined, after a full consideration, to propose to Parliament a Bill giving effect to this strongly and repeatedly expressed wish of the Australian Colonies, and Parliament having passed the Bill, there would be no advantage in continuing the discussion of the questions raised in tho correspondence which has taken place on this subject, and in which the general views of Her Majesty's Government have been explained. 4. It will be perceived that the Act gives full power to each of the Australian Colonies to make laws imposing or remitting duties, for the purpose of giving