A.-5

6

Seventh. The treatment of the natives of New Caledonia by the French Government raises the question whether, on philanthropical grounds even, it would be proper for Great Britain to assent, especially when the natives are objecting. 7. I do not know if it would be consonant with the dignity of the French Eepublic for the Government to listen to any proposal to dispose of its interest in New Caledonia to Britain. I believe that this would be better for the French Government than to go on at great expense in maintaining this Pacific colony; and, if the English Government could make an arrangement to purchase France's interest, I think that the Colonies of New South Wales, Victoria, and Queensland —to whom the possession of New Caledonia is perhaps of greater importance than to New Zealand—would gladly undertake the liability. lam afraid, however, there are great difficulties in the way of bringing this about; but lam firmly convinced that such a step would be more pleasing to the colonists than any agreement to give up the New Hebrides. 8. If the foreign policy of our Empire demands that such a concession should be given to France as allowing her to annex the New Hebrides, seeing that we have got in the Pacific no equivalent for the surrender of Eaiatea, I hope you will not hesitate to press for the obtaining of Eapa, and such other concessions from France as you think may be desirable for the colonies. 9. I shall communicate with the Premier of Victoria, and, if the Cabinet desires anything to be added to this letter, I may possibly wire you next week. 10. I write this now as the mail is just leaving, and as I am able to put my views more fully in a letter than by telegram. 11. I have marked this despatch " Confidential," because it covers the telegram which is marked " Secret and confidential," but I leave you to make such use of it as you may think expedient. I have, &c, Sir F. Dillon Bell, K.C.M.G., Agent-General. Bobeet Stout.

No. 9. The Peemiee, New Zealand, to the Peemiee, Victoria. Sic, — Premier's Office, Wellington, sth March, 1886. I have the honour to inform you that, on receipt of your secret and confidential telegram of the 26th February, and as my colleagues were then not available for consultation, I addressed a letter to our Agent-General, in it giving my views on the subject of the New Hebrides, the part of the letter dealing with which I now enclose for your information. Since then the Cabinet has fully indorsed my action, and it only remains therefore for me to convey to you the assurances of this Government of their willingness to co-operate with you and the other Australian Governments in the endeavour to prevent so undesirable a result as the acquisition of the New Hebrides by France. I have, &c, The Hon. the Premier, Melbourne, Victoria.- Robeet Stout.

No. 7. No. 8.

Enclosure. Pakageaphs 3, 4, 5, and part of 6 of letter from the Premier to the Agent-General, 27th February. (See No. 8.)

No. 10. The Peemiee to the Agent-Geneeal. Sik,— sth March, 1886. I have the honour to inform you that the secret and confidential telegram from the Victorian Premier on the subject of the New Hebrides, .&c, has been considered by the Cabinet, who have approved of my letter to you, dated the 27th February last. I have, &c, Sir F. Dillon Bell, K.C.M.G., Agent-General. Robeet Stout.

No, 7. No. 8.

No. 11. The Peemiee, Victoria, to the Peemiee, New Zealand. ■ Has your Government yet considered the telegram from the Agents-General dated the 24th February, and communicated to you on the 26th idem ? If so, I shall be .obliged if you will favour me by letting me know your views. Duncan Gillies, 13th March, 1886. Premier.

No. 7.

No. 12. The Peemiee, New Zealand, to the Peemiee, Victoria. Reply sent sth March. Robebt Stout 15th March, 1886. «obeet otout.

No. 13. The Peemieb, Tasmania, to the Peemiek, New Zealand. With reference to Murray Smith's secret telegram of the 24th February, and secret telegram of Secretary of State for the Colonies to South Australia 3rd March, is your Government disposed to concur ? 15th March, 1886. Peemiee.

No. 7.