A.—3

2

6. I do not regard the threatened lawless proceedings of the agents of the South Sea Islands Produce Company with any anxiety, unless they obtain the active support of Tamasese, the leader of the so-called rebel party, in which case Mr. Powell may find himself in a difficult position. 7. In the event of serious disturbances beyond his control I have desired him to communicate with me at once, and to forward a copy of his communication to Bear-Admiral Tryon. 8. Some months ago a Mr. John London appeared in Samoa as the agent of the company above named, and endeavoured, without success, to obtain possession of the land (250,000 to 300,000 acres) claimed by "the native woman." But Mr. Lundon, who is a well-known man in New Zealand, and chiefly conspicuous as an agent in any transaction with Natives requiring peculiarly nice management, was, it is believed, the agent of much more prominent persons who are anxious to secure the annexation of Samoa to that colony, and I am not without a suspicion that this move against Messrs. McArthur is but the cover to more important designs. 9. Mr. Lundon returned to New Zealand bearing with him a document purporting to be an application from the Government of Samoa for annexation to New Zealand. It was declared by the Government of Samoa that no such application had ever been made, but in many quarters in New Zealand Mr. Lundon's romance was received with perfect gravity. 10. The grounds for calling upon Her Majesty's Government to interfere further in Samoan affairs would be the existence, or asserted existence, of large British interests, and the necessity for maintaining law and order among British subjects and the South Sea Island Produce Company (whoever is represented under that title) no doubt have this fact in view. 11. Messrs. McArthur have been informed that, in the event of their requiring it, all possible lawful assistance and support will be given them in their actual possession of any land, and on the ground of such possession solely. I have in my communication to them repeated that the lands into the possession of which they have entered was not acquired in virtue of a writ issued out of the Deputy Commissioner's Court, and have referred them to my former correspondence on the subject. I have, &c. John B. Thukston. The Eight Hon. Colonel F. Stanley, etc., Secretary of State for the Colonies.

Sub-Enclosure 1. Messrs. MoAkthuk and Co. to the Acting High Commissioner. Sib,— We enclose for your information a copy of a letter sent by us per last 'Frisco mail to the Deputy High Commissioner, Samoa. W re also post you newspapers that contain paragraphs referring to the same matter and containing very definite statements. Of course, we do not know how far the information they give is reliable, but there is good ground for believing that Mr. Cornwall's party intend to use violence. The only passenger on the " Mararoa's " clearance for Tutuila is Mr. Hugh Hart Lusk, who has been acting as solicitor for Cornwall, but we find that Captain James Sinclair (master mariner, formerly in our and L. D. Nathan and Cos. employ), a Mr. Tisdail, and a Mr. Mathieson, also went with him. We are told six in all, but we cannot get the other names. We trust that any attempt to use force, or to incite the Tamasese party to deeds of violence, will be at once stopped, and that law and order may be maintained through prompt and decided action if necessary. We have, &c, W. W. McAethuk and Co. His Excellency the Acting^Kigh Commissioner Western Pacific, Suva.

Sub-Enclosure 2. Sik, — Auckland, Bth December, 1885. We have received intimation from private sources that Mr. F. Cornwall, in connection with other parties, is sending a Mr. Williams to Samoa by this opportunity for the purpose of seizing possession of various lands now in our possession. These lands originally were claimed by him, and his title to many of them registered in the British Consulate, but, as you are aware, we purchased his right, title, and interest in them through the High Commissioner's Court at a public sale, and we have since obtained Crown grants to many of them through the King and Government of Samoa. Wo have these Crown grants for the Faleula and Magia properties. We have instructed our agents to maintain possession by all lawful means, and in the event of any trouble arising to appeal to you. We trust you will render us all the support and protection to which we are entitled. Probably Mr. Cornwall's intention is to make use of the rebel or Tamasese party, with whom he has long been in communication. We have, &c, The Hon. Lieutenant Powell, E.N., W. W. McAkthuk and Co. Deputy High' Commissioner Western Pacific, Apia. P.S.—We hear there is some quarrel amongst Cornwall's supporters, and that probably Mr. Williams will not go down.