7

A.—la.

3. But it is urged that, although primarily of importance to Australia, it is as an Imperial question that this annexation should be considered ; and I am further led to understand that those colonies which would derive most advantage, whether in a political or in a commercial point of view, from this step, are of opinion that no part of its cost should be defrayed from colonial funds. 4. I could wish that some facts had been stated, or some arguments adduced, to substantiate a view which will naturally be thought here to need proof. There is, I am satisfied, not only no disinclination, but a hearty willingness on the part of the people and Parliament of this country, to accept, whether in expense or in political responsibilities, the common burdens of that Empire of which they are justly proud ; but it is simply impossible either for me to admit or, if even I were to make the admission, to persuade the English people that the Australian colonies have no special interest in the annexation of New Guinea, and that the responsibility of the measure rests exclusively with the Imperial Government. While, therefore, lam ready to give the fullest consideration to any advantage, if such can be shown, which would accrue to the Empire at large from the acquisition of the very great area of country now under consideration, I cannot at present perceive any ground other than that of its interest to Australia on which such a proposal could be seriously entertained. The proposal is made, it must be remembered, in the absence of any English settlements, I might almost say of any individuals of European race, on this unexplored continent, and in face of the fact that the information which we at present possess respecting it is extremely discouraging. Such trade, however, as would be developed in New Guinea and the adjacent islands, would principally benefit the Australian colonies, and it would not be easy to show that for such a purpose this country ought to incur a heavy expenditure unshared by any Australian colony. 5. Tour Ministers refer at some length to the facilities which would be given for repressing abuses and maintaining order by the establishment of British sovereignty throughout the islands. On this, again, I am bound to remark that it is only to a limited extent that this country can bo deemed to lie under the obligation of controlling, single-handed and unassisted, those places in which British subjects, in common with the subjects of many other Powers, carry on their trading business in the South Pacific ; and on the other hand, it will, I think, be admitted that England has shown no unwillingness to accept her full share of the expense, labour, and responsibility attendant upon the discharge of such a duty. She has, within the last twelve months, undertaken and carried out, in no grudging spirit, the duties involved in the annexation of Fiji; and she has created by Imperial legislation an adequate machinery for establishing and maintaining the authority of a High Commissioner over such places in the Pacific as it may from time to time seem expedient to bring under his jurisdiction. Tour Advisers will, in fact, find that the Gth section of the Pacific Islanders Protection Act of 1875 (passed since their minute was written) answers in effect most of the latter part of their suggestions. It will, under this Act, be in the power of Her Majesty's Government, should they think fit, to bring within the control of the High Commissioner the places referred to by your Ministers as desirable for annexation; and it will thus be possible to punish crime, to supervise the local trade, and, it may perhaps be added, to learn by experience how far there are other places which it may be expedient or necessary to bring absolutely under British rule. 6. As, therefore, provision bas been made, in the manner which I have explained, for the exercise of some authority over British subjects in the places under consideration, the principal if not the only ground on which Her Majesty's Government could be pressed to come to so hasty a decision as is nowurged in favour of further extending the Queen's sovereignty in the Pacific, would be the imminent probability of the annexation of New Guinea by some Foreign State. I should regret any such intention on the part of any Foreign Power, but I fail to perceive any present indication of it. The United States have continued to adhere to their traditional policy of not acquiring dependencies remote from the Continent of America ; the German Government has, I am informed, very lately intimated that it has no intention of acquiring colonies, and this intimation had special reference to New Guinea; and if, contrary to all present expectation, any other European Power should contemplate the acquisition of any of the Pacific Islands, it may be confidently supposed that it would not, without previous communication with this Government, assume jurisdiction over a place the expediency of annexing which to the British Empire is well known to have been formally recommended, and to be under the consideration of Her Majesty's Government. To assume any other line of action would be to assume a course of conduct very little consistent with those friendly professions which Her Majesty's Government constantly receive from other Governments and States. 7. I request you, therefore, to inform your Ministers that while Her Majesty's Government will continue to examine, by the light of such information as they may be able to procure, the arguments for and against the extension of British Sovereignty over New Guinea or any other of the Pacific Islands, they are at present far from being satisfied that such a course is expedient, and see no reason for hastening a discussion on so important a question. In the meantime, with a view to avert, as far as possible, the disasters, bloodshed, and mortality which are likely to arise .out of the speculations of trading companies or <^ms/-ciilitary expeditions, and also with a view to reserve to the Crown that power which cannot properly be surrendered, and the abdication of which in former times, and in similar circumstances, has led to very great trouble, loss, and expense, it is, I think, convenient that the warning contained in the enclosed letter, addressed to the promoters of a projected Company in London, should be made public in the colonies where similar schemes are, as I understand, already being proposed. I have, &c, Carhabvon.

Sub-Enclosure. The Colonial Office to Ejjwaed Schiteeet, Esq. Sic, — Downing Street, 30th October, 1875. I am directed by the Earl of Carnarvon to acknowledge the receipt of your letter of the 9th instant, transmitting the prospectus of a proposed Association, to be styled " The New Guinea Colonizing Association," with a draft of proposed rules and regulations for the guidance of an expeditionary force, and requesting that this project may receive the moral support of Her Majesty's Government,