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No. 38. The Secbetary to the Treasury to the Hon. W. Gisborne. Sir, — 2nd January, 1877. I have the honor, by desire of the Colonial Treasurer, to acknowledge the receipt of your letter of the 27th November, on the subject of the allowance to be granted to you under the Civil Service Acts, and in reply to inform you that the Government is prepared at once to recommend His Excellency to grant you a retiring allowance in terms of my letter of the 24th November. The reasons you urge in favour of being permitted to count the time during which you held office as a Minister of the Crown shall in the meantime receive further consideration ; it being understood that your acceptance of the allowance now proposed shall not prejudice your position as claiming to receive allowance in respect of the period above referred to. The Hon. W. Gisborne. C. T. Batkin. Mr. Eox.—This matter should now, I suppose, be brought before the Cabinet.—C. T. Batkin.— 2nd January, 1877. Yes. When you receive Mr. Gisborne's reply.—H. A. A.

No. 39. The Hon. W. Gisborne to the Secbetaey to the Treasury. Sir, — Wellington, Bth January, 1877. I have the honor to acknowledge the receipt of your letter of the 2nd instant, informing me that the reasons which 1 urged in my letter of the 27th November last in favour of my claim " to count the time during which I held office as a Minister of the Crown " shall receive further consideration, it being understood that in the meantime my acceptance of the retiring allowance now proposed shall not prejudice my position as claiming to count the period above referred to. Permit me to correct a slight verbal error in your reference to my claim, as it is an error which leads to a wrong inference. I do not claim to count the time during which I was a Minister as such, but the time during which 1 hold and did the duties of the office of Government Annuities Commissioner, as it was then called, in addition to and independently of the office of Minister. I have to thank the Hon. the Colonial Treasurer for promising that my letter of the 27th November last shall receive further consideration, and to state that, on the understanding which you specify, I have sent in a claim for the retiring allowance proposed from Ist October last. I have, &a , The Secretary to the Treasury, Wellington. W. Gisisorne.

No. 40. In Executive Council. His Excellency the Governor is recommended to grant to the Hon. William Gisborne, late Government Insurance Commissioner, under section 3 of "The Civil Service Amendment Act, 1861," a pension at the rate of four hundred and sixty-six pounds thirteen shillings and fourpence (£166 13s. 4d.) per annum, dating from the Ist October, 1876. H. A. Atkinson. Approved.—N.—ln Council, 2nd January, 1877.—Foster Goring, Clerk of the Executive Council. Befekred to the Commissioners of Audit.—C. T. Batkin. —12th January, 1877.

IV.—Hi: DR. POLLEN'S PENSION. No. 41. Memorandum as to Departmental and other Arrangements in Auckland. The Imperial Government have consented to allow 3 per cent, on the amount of pensions paid to persons entitled thereto who are residing within the colony, if the payments are undertaken by the Colonial Government; and the amount so agreed to be allowed will be about £600. This will afford an opportunity of relieving the Treasury of some departmental expenditure. The payments to pensioners will require some amount of professional knowledge, and will occasion a great deal of trouble. I have arranged with Dr. Pollen that he shall take charge of the whole matter, and shall draw out of the moneys allowed by the Imperial Government the sum of £300 per year, that amount being taken in lieu of the £300 now received by him as Paymaster. Dr. Pollen also draws £100 from the vote for Treasury contingencies. I propose that that amount shall still be paid to him for performing the duties of Sub-Treasurer, and that it shall appear in the estimates as " Sub-Treasurer and Paymaster, Auckland." The result on the estimates will appear a saving of £200 a year, although there will really bo a saving of £300. A great many Treasury duties still devolvo upon Dr. Pollen, notwithstanding the change to a system of direct payments. I have told him that the £300 to be received by him out of the allowance to the colony by the Imperial Government shall, for the purpose of any claim ho may have on account of services rendered and pay received, be considered as a departmental payment or salary.