A.—s

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APPENDIX H. no. I.—foem of conditions. Beitish New Guinea. Memobandum of Conditions under which permission is granted to to proceed to New Guinea for the purpose of 1. I undertake faithfully to inform Her Majesty's Special Commissioner, or such public officer as may be specified by him, as to my proceedings at all times within the limits of British New Guinea ; to conduct my operations entirely at my own risk, and on the understanding that neither Her Majesty's Special Commissioner nor any public officer of British New Guinea assumes any responsibility whatever, except in the case of official intervention which may be considered necessary. 2. I agree to abide by the Arms Eegulations Act of 1884, and all other regulations now in force in the Protected Territory of British New Guinea, as well as all such regulations as may be passed from time to time, and to pay to Her Majesty's Special Commissioner such license-fees, duties, &c, as may hereafter be levied, from time to time within the limits of British New Guinea. This permission is only to apply to the above-stated object, namely, and subject to the fair treatment and payment of the natives in respect to the same.

No. 2.—FORM OF PERMIT. Beitish New Guinea. Peemission is herewith granted to to in the District of , in British New Guinea, in accordance with the conditions agreed to by him. Her Majesty's Special Commissioner reserves to himself the right to cancel this permission, and to call upon the said to leave the territory, should he or his agents at any time perform any act which the Special Commissioner may consider detrimental to the maintenance of good order and government within the limits thereof. Special Commissioner.

APPENDIX la. PEOTECTOEATE OF BEITISH NEW GUINEA. Statement showing the Total Eeceipts and Expendituee from the Ist March, 1886, to the Ist June, 1886. Db. £ s. d. I Ob. £ s. d. To Grants in aid for twelve months I By Balance from last statement .. 2,349 210 ending the 31st May, 1886, viz.— Establishments— Western Australia .. .. (a) 323 13 6 Salaries, fixed — New South Wales .. .. 4,084 14 i\ Special Commissioner .. .. 625 0 0 Victoria .. .. .. 4,693 88J Deputy-Commissioner.. .. 16 13 4 South Australia .. .. 1,524 11 7 Assistant Deputy-Commissioner 175 0 0 Queensland .. .. .. (6) 826 7 6 Accountant .. .. .. 50 0 0 Tasmania .. .. .. (c) 632 5 0 Allowances— Proceeds of sale of stores— Travelling expenses of CommisSale of boat, stores, &c. .. .. 159 18 9 sioner, and staff, &c. .. .. 275 17 0 Services (exclusive of establishments) — Steamer " Governor Blackall"— Charter-money .. .. 175 0 0 Eestoration .. .. 500 0 0 Schooner " Governor Cairns " — Stores .. .. .. 315 1 0 Clothing .. .. .. 23 18 10 Wages of master and crew .. 34 5 0 Incidentals .. .. .. 4 10 10 Contingent expenditure—■ Clerical assistance .. .. 10 0 0 Arms and ammunition .. .. 84 6 2 Cablegrams, &c... .. .. 46 11 8 Gratuity to G. S. Fort .. .. 30 11 5 Incidental expenses .. .. 73 16 6 4,789 14 7 Balance .. .. .. .. 7,455 4 9 £12,244 19 4 £12,244 19 i (a) Two years' contribution. (6) After allowing for an over-payment of £336165. 3d. in 1885. (c) Allowing for a further contribution of £30 6s. 2d. received in June, Tasmania has actually over-contributed the sum of £1 18s. lOd. JOHN DOUGLAS, Cooktown, 29th September, 1886. Special Commissioner.

Ceetificate of Audit. I hereby certify that I have examined the accounts of the Protectorate of British New Guinea for the period between the Ist March and the 31st May, 1886—amounting on the credit side (including the sum of £2,349 2s. 10d., balance brought forward) to £4,789 14s. 7d., and on the debit side to £12,244 19s. 4d.; and find— 1. That all sums received have been duly brought to account; and that the several payments made have been correctly computed, and are supported by proper vouchers. 2. That, assuming the population, as ascertained by the census of 1881, to be the basis of assessment, each of the several colonies (with the exception of Fiji) has contributed its full quota. The contribution of New Zealand, however —viz., £2,G68 18s. 9d.—and a balance of £30 6s. 2d. paid by Tasmania, did not reach the bank until July and June