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No. 12. Copy of a DESPATCH from the Right Hon. the Earl of Carnarvon to the Officer Administering the Government of New Zealand. (Circular.) Sir, — Downing Street, 19th January, 1878. I have the honor to transmit to you, for the information of your Government, a copy of a letter from the Foreign Office, relative to the negotiation of a fresh Commercial Treaty between Great Britain and Italy, together with a copy of the reply which I have caused to be returned to the Foreign Office. I have, &c, The Officer Administering the Government CARNARVON. of New Zealand.

Enclosure 1 in No. 12. The Foreign Office to the Colonial Office. Sir, — Foreign Office, 31st December, 1877. I am directed by the Earl of Derby to state to you, for the information of the Earl of Carnarvon, that in June, 1875, the Italian Government gave notice to terminate the Commercial Treaty of the 6th of August, 1863, between Great Britain and Italy; but that by successive declarations the duration of this treaty has been prolonged. According to present arrangements it will remain in force until the 31st of March next. It appears, by a despatch recently received from Her Majesty's Ambassador at Rome, that the Italian Government will probably propose to negotiate a fresh Commercial Treaty. Until definite proposals are received, Lord Derby is unable to state what alterations the Italian Government are likely to ask for in the terms of the present treaty. But, as far as his Lordship is able to judge, these alterations will not affect colonial interests, the point to which the Italian Government seem to attach chief importance being conditions relating to the tenure of land in Italy by foreigners. It will be seen from the present treaty, of which, for convenience of reference, a copy is enclosed, that its terms apply to all dominions and possessions of the two high contracting parties. I am accordingly to inquire, in view of negotiations which may be commenced at an early date, whether Lord Carnarvon would wish that, in any fresh Commercial Treaty, the stipulations relative to colonies and foreign possessions should be renewed, or whether they should be omitted, and an article, in the terms suggested in your letter of the 14th August last, be substituted for them. I am, &c, The Under Secretary of State, Colonial Office. Julian Pauncefote.

Enclosure 2 in No. 12. The Colonial Office to the Foreign Office. Sir, — Downing Street, 18th January, 1878. I am directed by the Earl of Carnarvon to acknowledge the receipt of your letter of the 31st ultimo, relative to the negotiation of a fresh Commercial Treaty between Great Britain and Italy, for which proposals may probably be made. In reply, I am to request that you will state to the Earl of Derby that, if the new treaty is in the same form as the existiug one, it should be made to apply to the British Colonies ; but that, if any important changes are introduced, Lord Carnarvon would wish to have an opportunity of considering them in relation to the colonies before expressing an opinion on the subject. I am to add that a copy of your letter and of their reply will be transmitted to the Governors of colonies possessing responsible government, for their information. I am, &c. The Under Secretary of State, Foreign Office. W r. R. Malcolm.

No. 13. Copy of a DESPATCH from the Right Hon. the Earl of Carnarvon to the Officer Administering the Government of New Zealand^ (Circular.) Sir, — Downing Street, 21st January, 1878. The Italian Government having represented that the authorities in New Zealand refused to assist in the apprehension of deserters from Italian merchant