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The minutes of yesterday's proceedings were read and confirmed. A letter from Mr. Julian Thomas on the subject of " South Sea Massacres " was read and handed to the Chairman of the Committee appointed to consider the matters involved in Mr. Palmer's resolution, and to examine papers on the subject. A letter was read from Hugh M.cColl, Esq., M.L.A. (Victoria), on the subject of " Canalization for Irrigation," &c.—Noted. Federal Council of Australia Bill. The Chairman read a memorandum on the subject of " A Bill to establish a Federal Council of Australia." It was moved by Mr. Beery (seconded by Mr. Chief Justice Weenfobdsley), That the memorandum now read, be inserted in the minutes of proceedings of the Conference.—Agreed to. Memorandum. " In respect to the Federal Council Bill now submitted, the following positions are assumed as hardly open to debate: — "1. That the time is not come for the construction of a federal Constitution with an Australian Federal Parliament. " 2. That the time is come when a number of matters of much concern to all the colonies might be dealt with more effectively by some federal authority than by the colonies separately. "3. That an organization which would lead men to think in the direction of federation, and accustom the public mind to federal ideas, would be the best preparation for the foundation of federal government. " The Bill has been prepared to carry out the idea of a mixed body, partly legislative and partly administrative, as the forerunner of a more matured system of federal government. Care has been taken throughout to give effective power to the proposed Federal Council within prescribed limits without impairing the authority of the colonies represented in that body. "No attempt has been made to constitute the proposed Council on any historical model, but the object has been to meet the circumstances of the present Australian situation, and to pave the way to a complete federal organization hereafter. " Henry Paekes. " 21st January, 1881." The Chairman handed to each member of the Conference draft "Bill to establish a Federal Council of Australia," and explained its several objects. The Bill having been read to the Conference by the Secretary, a conversational discussion ensued on its general scope and principles; after which Mr. Berry moved (seconded by Mr. Dick), That the further consideration of the Federal Council Bill be postponed until Monday next. —Agreed to. Islands in the Pacific. The Chairman stated that he had received a letter from Lord Augustus Loftus, enclosing various telegrams in relation to the inquiry instituted by the Conference into the powers of the High Commissioner for the Pacific. The same were read by the Chairman. It was moved by Mr. Beeey (seconded by Mr. Morgan), That the letter of Lord Augustus Loftus, covering telegrams which had passed between His Excellency and Sir Arthur Q-ordon, as read by the Chairman, be entered upon the minutes.—Agreed to. " Dear Sir Henry,— " Government House, Sydney, N.S.W., 21/1/81. " I send you herewith copies of two telegrams which I have received from Sir A. Gordon, which he wishes should be communicated to the Conference. " I also enclose copy of the reply I sent yesterday to his first telegram. " Tours truly, "The Hon. Sir Henry Parkes, K.C.M.G." "Augustus Loftus. Telegram from Sir A. G-ordon to Lord Augustus Loftus. "20/1/81. " I have been informed by telegram that the Conference proposes to investigate my powers. They can hardly do this courteously without communicating with me, or to much purpose without information from me, which I will furnish if asked for through you." Telegram from Lord Augustus Loftus to Sir A. Gordon. "20/1/81. " Shall I communicate substance of your telegram to New Zealand representative ? Resolution moved was, that a representation should be made to the Queen, calling attention to late massacres in South Seas since appointment of High Commissioner, and praying action against their recurrence. Eesolution postponed, and Committee appointed to consider action to be taken in regard to it." Telegram from Sir A. G-oedon to Lord Augustus Loftus. "21/1/8L " Should wish substance of telegram communicated to Conference, but have, as High Commissioner, no more special relations with delegate from New Zealand than with those from other colonies." It was moved by Mr. Beeey (seconded by Mr. Moeehead), That the enclosed extract from the minutes of the Conference be forwarded to His Excellency the Governor of New South Wales, with a respectful request that the said extract be forwarded by telegraph to Sir A. Gordon, with an intimation that the Conference will willingly receive any information Sir A. Gordon may desire to communicate by telegraph.—Agreed to.

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