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3. It is quite evident that Sir George Grey does not command a majority in the present House, nor is there the slightest evidence that he has ever done so. 4. It is perfectly true that the vote of want of confidence was defeated by the casting vote of the Speaker, in a catch division ; but Sir George Grey has omitted to state that there were three members accidentally absent, who subsequently explained in the House the reason of their absence, and stated that they had intended to have voted against the Government; and the Government have since been placed in a minority —I admit only of one—in the conduct of the business of the House. 5. I am quite aware that, in England, Parliament is always ready to vote the supply necessary for the service of the country, and no doubt it is a very constitutional and proper principle to act upon; but I also know, as a fact, that it is a principle which is by no means uniformly acted upon in the colonies; and Sir George Grey having distinctly informed me that if I would grant him a dissolution, he was prepared to go to the country, whether the House would vote the supplies or not, I felt bound to take that question into my consideration. 6. If I had granted a dissolution conditionally upon supply being voted, I felt that I should be putting a pressure upon the action of Parliament, to inducethem to take a step which they might otherwise be unwilling to take; and besides that, I should have been placing the exercise of the Royal prerogative openly and entirely in the hands of the House. I thought it, therefore, my duty to refuse the dissolution at present, intimating at the same time to Sir George Grey that if he could show me that even three months' supply had been granted, I should be ready to reconsider the question. I have, &o.j The Right Hon. the Earl of Carnarvon. NORMANBY.

No. 3. Copy of a DESPATCH from Governor the Most Hon. the Marquis of Normanby to the Right Hon. the Earl of Carnarvon. (No. 4.) Government House, Wellington, My Lord, — New Zealand, 4th January, 1878. I have the honor to transmit to your Lordship copies of all Acts passed by the General Assembly during their late session, together with a synopsis of the same prepared by the Solicitor-General. 2. The Shipping and Seamen's Act and the Domicile Act have been reserved for Her Majesty's assent —the former, on account of its coming within the class of Bills which are directed to be reserved by the 11th clause of the Royal Instructions; and the Domicile Act, because it appears that the operation of section 5 may affect the interest of persons not resident in the colony. I have, &c, The Right Hon. the Earl of Carnarvon. NORMANBY.

Enclosure in No. 3. Synopsis on the Acts passed by the Geneeal Assembly op New Zealand in the Session of Pahliament held in the year 1877. The Public General Statutes. No. 1. The Imprest Supply Act authorizes an advauce of £250,000 out of the Public Account by way of imprest for the service of the year ending 30th June, 1878. The money to be charged in the manner expressed in the Appropriation Act of the session appropriating the same. No. 2. The Imprest Supply Act No. 2 similarly authorizes a further advance of £250,000. No. 3. The Imprest Supply Act No. 3 similarly authorizes a further advance of £250,000. No. 4. The Imprest Supply Act No. 4 similarly authorizes a further advance of £100,000. No. 5. The Imprest Supply Act No. 5 similarly authorizes a further advance of £150,000. No. 6. The Imprest Supply Act No. G similarly authorizes a further advance of £100,000. No. 7. The Disqualification Act 187G Amendment Act exempts certain members of the General Assembly from penalties under "The Disqualification Act, 1876," to which they had rendered themselves liable by receiving attendance fees as members of certain Eiver Conservation Boards.