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already left Wellington, and it was generally understood that the session would end the following Monday. There was therefore a strong feeling that in such circumstances the question could not be adequately considered, and, although members of both the present and the late Government spoke strongly in favour of the resolutions (subject only to a verbal alteration making it clear that the sum of £15,000 which this colony would undertake to pay a share of, was that which was first proposed by the Imperial Government), they were amended by striking out resolutions (e), (/), (g), and substituting the following words : " (e.) That it is of opinion that further negotiations should take place between the " Australasian Colonies with regard to federation, and that further consideration "of the question be postponed until next session of Parliament." 10. I transmit copies of the resolution as agreed to by the two Houses respectively. The New Zealand Hansard containing the debates is not yet printed; but I will transmit copies as soon as they appear. 11. From my telegram of the 17th November your Lordship will have already learnt the conclusions arrived at by Parliament, and will have seen that in accordance therewith my Government urge the postponement of the Federal Bill. I have, &c, Wm. F. DRUMMOND JERVOIS. The Right Hon. the Earl of Derby.

Enclosure No. 1. Mbmoeandum by Sir Julius Vogel. The Colonial Treasurer of New Zealand, having for many years past taken great interest in questions relating to the South Sea Islands, submits this memorandum to the Cabinet regarding his views as to the present situation. 1. There are four subjects relating to the islands calling more or less for a distinct decision on the part of the colony through its Legislature. 2. These questions are, — (a.) The annexation or establishment of a protectorate over New Guinea and other islands in the Pacific; (b.) A contribution by the colony to the cost of a High Commissioner and his staff in special relation to New Guinea ; (c.) The question of any of the islands in the South Seas being used for the reception of convicts; (d.) The proposal to establish a Federal Council. It is better to deal with these subjects separately. 3. (a.) New Zealand has less direct interest in New Guinea than in the more easterly islands. The annexation of New Guinea, or a large portion of it, is of commanding importance to Queensland because of its proximity to that colony. The establishment of a foreign Power in the south-east of New Guinea would, in course of time, be as disastrous to Queensland as would the foreign occupation of one of its islands be to New Zealand, or the foreign occupation of Tasmania be to Victoria._ The southerly Colonies of Australia have somewhat more interest in the annexation of New Guinea than has New Zealand: the interests of the latter are mainly concerned in the annexation of the islands to the eastward of Australia. Considering less their geographical position than the trade which has grown up with them, Victoria and New South Wales have probably as much interest in the islands to the east as they have in New Guinea, so that in making New Guinea the most prominent subject of their representations "they have shown rare disinterestedness. Still no colony has so much interest in any one island, or group of islands, as Queensland has in New Guinea, and the colonies were bound to look at the question from something more than a selfish point of view. It is well, however, that the situation should be distinctly understood, because there is no reason why New Zealand and other colonies should carry their self-sacrificing disposition so far as to fail to press on the Imperial Government the immense importance to them, now that the question, as far as it relates to New Guinea, is settled, of the annexation of the other islands. The Colonial Treasurer holds that the Parliament of New Zealand should be asked to express its approval of the annexation of the easterly islands, as well as of New Guinea. The re-enactment, slightly altered, of the following resolution, passed by the House of Bepresentatives last year, would seem to meet the case so far as an expression of opinion is concerned: "That the British Government should, under existing circumstances, take steps for the establishment of its rule over such islands in the Pacific as are not already occupied by or under the protectorate of a foreign Power, and the occupation of which by any foreign Power would be detrimental to the interests of Australasia." It might, however, be better to follow more nearly the language of the resolutions passed by the Convention last year. It would embarrass rather than aid the Imperial Government to enter into the question of the conflicting interests to be considered in relation to the islands east of Australia and New Guinea. But it can do no harm to make a special reference to the Tonga and Samoa groups of islands, which are probably the most valuable of the islands yet unannexed. The Tonga

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