A.—2

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the Board of Trade report to Her Majesty that they are satisfied that the certificates are to the like effect, and are granted after a like survey, and in such manner as to be equally efficient with the certificates granted for the same purpose in the United Kingdom under the Acts relating to merchant shipping, it shall be lawful for Her Majesty, by Order in Council, — (1.) To declare that the said certificates shall be of the same force as if they had been granted under the said Acts; and (2.) To declare that all or any of the provisions of the said Acts which relate to certificates granted for passenger-steamers under those Acts shall, either without modification, or with such modifications as to Her Majesty may seem necessary, apply to the certificates referred to in the order; and (3.) To impose such conditions, and to make such regulations with respect to the said certificates, and to the use, delivery, and cancellation thereof as to Her Majesty may seem fit, and to impose penalties not exceeding forty pounds for the breach of such conditions and regulations : And whereas the Legislature of the British possession of New Zealand has provided for the survey of and grant of certificates for passenger-steamers : Arid whereas the Board of Trade have reported to Her Majesty that they are satisfied that such certificates are to the like effect, and are granted after a like survey, and in such manner as to be equally efficient with the certificates granted for the same purpose in the United Kingdom under the Acts relating to merchant shipping : Now, therefore, Her Majesty is hereby pleased, by and with the advice of Her Privy Council, — 1. To declare that the certificates granted under the said provision by the Legislature of tho British possession of New Zealand for passenger-steamers shall be of the same force as if they had been granted for tho same purpose in the United Kingdom under the said Acts relating to merchant shipping, provided the surveys of the vessels are conducted in accordance with such regulations as shall be annually approved by the Board of Trade. 2. To declare that all the provisions of the said Acts which relate to certificates granted for passenger-steamers under those Acts shall, without modification, except as hereinafter mentioned, apply to the certificates referred to in this order. 3. To declare that it shall not be lawful for a passenger-steamer to which this order relates to proceed to sea with passengers on board from any port or place in the United Kingdom on any voyage other than one to the said possession of New Zealand, or to any intermediate place or places situate on such voyage. 4. To declare that, if any passenger-steamer to which this order relates goes to sea from any place in the United Kingdom with any passengers on board upon any voyage other than a voyage to the said possession of New Zealand, or any intermediate place or places as aforesaid, the owner thereof shall, for every such offence, incur a penalty not exceeding fifty pounds, and such penalty is hereby imposed accordingly. C. L. Peel.

No. 11. (New Zealand, General.) Sir, — Downing Street, 17th December, 1886. I have the honour to acknowledge the receipt of your Despatch No. 103, of the 20th October, stating that, for certain reasons, your Government does not desire to come within the operation of the Treaty of Friendship, Commerce, and Navigation between Her Majesty and the Republic of Paraguay. I caused an intimation to that effect to be made to the Secretary of State for Foreign Affairs, and I now transmit to you a copy of a reply which has been received from the Foreign Office. I have, &c, EDWAED STANHOPE. Governor Sir W. F. D. Jervois, G.C.M.G., C.8., &c.

A.-1., 1887, Sess. 1., No. 54,

Enclosure. The Foreign Office to the Colonial Office. Sir, — Foreign Office, 14th December, 1886. With reference to your letter of the 4th instant, I am directed by the Earl of Iddesleigh to acquaint you, for the information of Mr. Secretary Stanhope, that Her Majesty's Minister to Paraguay has been this day instructed to inform tho Paraguayan Government that tho Colony of New Zealand does not desire to come within the stipulations of the commercial treaty signed between Great Britain and Paraguay on the 16th of October, 1884. I have, &c, The Under-Secretary of State, Colonial Office. J. Pauncefote.