5

A.—s

the Agents-General, accompanied by Canadian Commissioner, received express assurance Her Majesty's Government are determined to strictly adhere to pledge that nothing shall be done to change position of New Hebrides without previously consulting colonies. But he requests us to inform Governments confidentially that the French Ambassador has offered the Secretary of State for Foreign Affairs France will cease transportation altogether in the Pacific if she is allowed have New Hebrides; whereon has replied nothing shall be done without consulting the colonies, which was recognized by the Ambassador. Secretary of State for the Colonies then said that the proposals might be more acceptable if Eapa were given to England ; and now Granvillo invites Governments to consider the proposals of French Ambassador, and to communicate result as soon as possible consistent with the importance of subject. Eights British subjects and missionaries guaranteed. Communicate to other Governments." Duncan Gillies, Melbourne, 26th February, 1886. Premier.

No. 8. The Peemibe to the Agent-Genekal. Sib,— Premier's Office, Wellington, 27th February, 1886. I have formally acknowledged the letters received by me by the " Tongariro," by the mail via San Francisco, and this morning by the " Aorangi." Eeferring to the New Guinea and Pacific Islands question, I do not think it is necessary to add anything to what I have said in previous letters. It can hardly be said that the position of New Guinea is satisfactory. South Australia has withdrawn from the guaranteed payment of £15,000, and we must wait until we see what the other colonies intend to do regarding this payment. 2. It is possible that there may be at the end of March, or in the first week of April, a meeting of the Governors and Premiers of the colonies in Melbourne, to deal with the subject of defence, and at this meeting the New Guinea question may be discussed. 3. Last night I received a cablegram, marked " Secret and confidential," from the Premier of Victoria. It had been forwarded, by the consent of the Agents-General, to Victoria, for communication to the other Colonial Governments. I enclose it with this letter. I may say I am not surprised at the proposal it contains. It has been apparent to me for some time that the cost of New Caledonia to France must have been great, and no doubt the French Government now see that there is little hope of reducing the expenditure. New Caledonia can produce little, her mines have failed, and her soil is not so fertile as to enable her to rely on vegetable products. The convicts who have served their time are unable to maintain themselves in the colony ; they have either to leave, seeking a home in Australasia or Fiji, or else they commit some fresh crime and are again kept at the expense of the State. Colonization in any proper sense of the term is impossible. The French officials no doubt have seen that what is required to make New Caledonia approach a self-supporting position is some outlet for settlement of the convicts and emigrants. This wish can only be obtained by the annexation of the New Hebrides. These islands are rich in soil, and will maintain a considerable population. They are near New Caledonia, and the French have several settlements amongst them. It is only natural, therefore, that France should try and obtain possession of the New Hebrides. 4. From the telegrams that have appeared in the papers we learn that Germany raises no objection to the French annexation of the group. The proposal made to the English Secretary for Foreign Affairs—namely, that no more convicts will be sent to the Pacific if these islands are obtained by France —has, no doubt, been thought by the French authorities to be one that will be pleasing to the colonies. 5. Ido not deny that it is a great concession; for, no doubt, having New Caledonia the French depot for ricidivistes is much worse than having New Caledonia and New Hebrides French colonies for moral people. I shall bring the matter before the Cabinet next week, and what I state in this letter I am, therefore, only expressing as my own views : still I am of opinion that in New Zealand, and, I believe, in the Australian Colonies, there will be no assent made to the proposition of the French Ambassador. 6. The reasons which will induce the colonists to refuse this assent will be these, amongst others :— First. The New Hebrides have been practically looked upon as a British possession. Second. They have been the seat of the Presbyterian Mission in the Pacific, and any advance they have made in civilization has been due to that Church. Third. It is well known that, whilst the French Government at Home allows absolute freedom in religious matters —indeed, is thought to be opposed to the Catholic Church—yet abroad, and in the Pacific especially, occupation by France is thought to mean the granting of privileges to the Roman Catholic Church that are not granted to any other religious body. Fourth. There is also a strong feeling in the colonies that they should protest against any further occupation by foreign Powers of the Pacific Islands. Fifth. The islanders themselves are strongly opposed to French occupation. Sixth. The labour question will complicate the issue, for it is apparent to me that the getting of labourers in. the islands for plantations in Fiji and elsewhere is-attended with great and increasing difficulty. It will be hopeless for English planters to obtain any islanders now from the Solomon and other islands that have been taken possession of by Germany. The New Guinea natives are entirely unsuitable for labourers; and, if settlers can obtain no labour from the New Hebrides, they will be heavily handicapped.

No. 7.