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The system of increase, according to the Civil Service Eegulations, has also never been applied to this office. Eichaed Hackwoeth. Thomas Shoett. B. McKilliam. Minute For the Agent-General.—W Kennawat, 15th September, 1880. I will send to the colony this memorandum, which is perfectly correct in its statement. But I have no option left me; my instructions are imperative to make the reduction from the Ist October.—J V

No. 10. The Hon. the Peemiee to the Agent-Geneeal. Sie, — Government Offices, Wellington, 4th December, 1880. I have the honor to acknowledge the receipt of your letter No. 827, of the 6th October, in which you state the action you took upon receiving my telegram of the 7th September, informing you of reductions directed by Parliament to be made in salaries, &c, and in which you also comment upon that direction. 2. I have to say that your letter has been considered by the Government, and that the final determination as to trie questions raised by Mr. Kennaway and Mr. McKellar will be postponed until the receipt of the further statements which those gentlemen desire to submit. 3. The Government regret that you should, out of your pocket, have paid to the several officers named in your letter the amounts by which their salaries for six months were respectively reduced by your compliance with the instructions given in my telegram. Such an act by an officer holding the position of Agent-General was calculated, whatever may have been intended, to suggest to his subordinates that he believed they had been unjustly treated. The Government recognize and regret that hardship has, in many cases, been caused by compliance with the instructions of Parliament as to salaries ; but they are satisfied that that direction was a necessity in view of the condition of the colonial finances, and was not unjust. They think, therefore, that the Agent-General should, supposing him to be personally unable to agree with the views of Parliament and of the Government, have confined himself, in officially dealing with the question, to informing his subordinate officers what those views were. 4. I have to add that the Government consider the last paragraph of your letter altogether uncalled for, as being an expression of opinion upon action of Parliament affecting departments not under your control. I have, &c, Sir Julius Vogel, K.C.M.G., Agent-General, London. John Hall.

No. 11. The Agent-Geneeal to the Hon. the Peemiee. Sin, — 7, Westminster Chambers, London, S.W., 26th November, 1880. I have the honor to acknowledge the receipt of your letter of the 24th September, No. 157, in reply to mine of 11th August, No. 673 ; and also referring to your letter of 10th September and to the telegram of the 7th of that month, informing me of the further reduction of the vote for my department to £3,000, and of the alterations desired by the Government in consequence thereof. My letter of 6th October, No. 827, to the Hon. the Premier, will have informed the Government of the steps I have taken in order to carry out their wishes in this matter. I have, &c, Julius Vogel, The Hon. the Premier, Wellington. Agent-General.

No. 12. The Agent-Geneeal to the Hon. the Peemiee. Sie, — 7, Westminster Chambers, London, S.W , 30th November, 1880. I have the honor to submit to you correspondence which has passed between me and the Secretary of this department. I cannot too strongly urge Mr. Kennaway's claims, and express the hope that you will not insist on the very large reduction of his salary Mr. Kennaway's services are invaluable to this department, and the emoluments he receives, taken into consideration with his position, duties, responsibilities, and the heavy cost of living in London, are certainly not excessive. To take off 25 per cent of his salary is a hardship, the nature of which I should think has scarcely been sufficiently reflected on, and I sincerely hope it will meet with your favourable reconsideration. I have, &c, Julius Vogel, The Hon. the Premier, Wellington. Agent-General.

Enclosure 1 in No. 12. The Agent-Geneeal to Mr. Kennawat. Sie,— 7, Westminster Chambers, London, S.W., 22nd October, 1880. In continuation of previous correspondence, I have now the honor to inform you I have received by post the letter covering the telegram concerning the reductions I am ordered to make in