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Zealand that a foreign Power should not own the Navigator Islands. But in this case, the Imperial Government has a large direct interest. The islands are excellent, both in resources and position; they are outside the hurricane track ; and for maritime purposes are, it is believed, much more valuable than Fiji, with its dangerous approaches. It is, perhaps, inexpedient to urge annexation just now, but it may be desirable at some future time to do so ; and, in the face of the despatch under consideration, it would be impossible to make the recommendation without knowing the views of the Assembly as to a money contribution. The Premier therefore thinks that when it is considered desirable to take further steps, the Government should submit to both Houses a Resolution to the effect that the Assembly recognizes that if the colony urges the Imperial Government to further annexation, because of the interests of New Zealand partly or wholly requiring the annexation, a statement should also be made of the amount the colony is prepared to contribute; and the Assembly is also of opinion that if the Goverhment at any time deem it necessary to recommend the annexation of the Navigator group, such recommendation should be accompanied by an undertaking to submit to the Legislature a stated contribution. Lord Carnarvon intimates that he would prefer that the colony should come to a conclusion in concert with the other colonies. On behalf of New Zealand, the Premier would be glad to aid this result, but he does not see much prospect of it. New South Wales and New Zealand frequently actin concert, and their interests are identical with regard to some of the islauds. The other colonies have less direct interests at stake. With His Excellency's permission, copies of this Memorandum might be sent to all the Australian colonies, though it is doubtful if any results would follow. Probably each colony has already forwarded an expression of its views. Wellington, sth April, 1876. Jtjlifs Vogel.

No. 3. Copy of a DESPATCH from the Right Hon. the Earl of Carnarvon to Governor the Most Hon. the Marquis of Normanby. (Circular.) Sir, — Downing Street, 13th January, 1876. I have the honor to transmit to you a copy of a despatch which I addressed last month to the Governor of New South Wales, being of opinion, as I stated in the first paragraph of that despatch, that I might most conveniently address to that colony which had made the most extensive proposals with regard to farther annexation (whether in New Guinea or elsewhere in the Pacific), those observations which had been called for by despatches which I had received from other colonies on portions of the same subject. I need not, of course, add that, whilst embodying my general reply in a despatch addressed to one single colony, I have given the fullest and most careful consideration to all the communications which have reached me on this matter from other Australasian colonies; and I trust that the course which I have taken will not be thought inconvenient. I regret, however, that through an accidental delay, this despatch has not been sooner addressed to you. I have, &c, The Officer Administering the Government CARNARVON, of New Zealand.

Enclosure. The Earl of Caenaeyon to Governor Sir H. Robinson. Sic, — Downing Street, Bth December, 1875. I have the honor to acknowledge the receipt of your Despatch, No. 52, of the 3rd June, in which you transmitted a minute, signed by Mr. Robertson, on behalf of your Ministers, recommending that Her Majesty should be advised, with as little delay as possible, to take possession not only of New Guinea, but of the Islands of New Britain, New Ireland, and a large number of other islands extending to a long distance in the Pacific Ocean east and north-east of New Guinea. I have also received addresses in favour of the annexation of New Guinea from the Legislatures of South Australia and Queensland, and I am informed that a similar representation will be addressed to me from Victoria; but as the minute of your Ministers comprises a much more extensive proposal than has otherwise come before me, it may be convenient that I should address to you that general statement of the present views of Her Majesty's Government which it is convenient no longer to delay. 2. The principal reasons which have been advanced for the extension of British sovereignty over New Guinea and other islands of the Pacific may be fairly summed up as follows : — (1.) That their possession would be of value to the Empire generally, and conduce specially to the peace and safety of Australia, the development of Australian trade, and the prevention of crime throughout the Pacific. (2.) That the establishment of a Foreign Power in the neighbourhood of Australia would be injurious to British, and more particularly to Australian, interests.