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The Legislature of Queensland has recorded its entire concurrence in these resolutions, but no colony has taken measures to provide the requisite funds, as suggested by the Convention. 4. As, therefore, in the absence of any joint action by the colonies, Her Majesty's Government are not in a position to deal with these questions of policy to which I have referred, and some further delay seems unavoidable, it may be desirable that your Government should consider, with the Governments of the other Australasian Colonies, whether there may not be advantage in making provision for the intervening period in the manner suggested by me in paragraph 7 of my despatch of 11th July last to Sir A. H. Palmer. As I then stated, Her Majesty's Government are confident that no foreign Power contemplates interference with New Guinea ; but in the absence of any controlling authority it is always possible that the subjects of a foreign Power might require the protection or intervention of their Government; and British subjects also, by coming into collision with the natives, or by setting up claims to land, might cause complications which would give much trouble hereafter. 5. Her Majesty's Government are disposed to think that there should be a High Commissioner, or at least a Deputy Commissioner, with large powers of independent action, stationed on or near the eastern coasts of New Guinea, and that he should be furnished with a steamship independent of Her Majesty's naval squadron, and with a staff sufficient to enable him to exercise protection in the name of the Queen on those shores. The cost of this arrangement cannot be accurately estimated, as I have previously stated; but if one or more colonies will secure to Her Majesty's Government the payment of a sum of (say) £15,000 during the year ending Ist June, 1885, they will be prepared to take immediate steps for establishing the High Commissioner's jurisdiction, and will render to the contributing Governments an account of the expenditure incurred. It would be possible after some months to determine whether this arrangement should be further continued, and to consider with the Colonial Governments (or with the Federal Council, if established) what arrangements should be made for the future supervision of the labour trade, if it should be decided that it can continue to be allowed. Her Majesty's Government have come to no conclusion as to the recommendations of the Western Pacific Committee, in regard to which the colonies should first be consulted ; but I think it doubtful whether it will be found practicable to place the regulation of the labour traffic under Imperial control. 6. I may also state, in conclusion, that the annual expenditure of this country in the maintenance of the squadron on the Australian Station, including schooners and surveying-vessels, is estimated as amounting at present to about £157,000. I need hardly add that it is desirable that I should learn as soon as possible the result of the careful consideration which I trust that this despatch will receive from your Government, in conjunction with the Governments of the other Australasian Colonies. I have, &c, Debby.

No. 2. Telegram from the Colonial Secretary to the Agent-General. Sydney, 30th June, 1884. This colony joins in paying proportion of fifteen thousand New Guinea expenses. Alexander Stuart.

No. 3. The Agent-General to the Colonial Secretary. Sir, — 5, Westminster-Chambers, Westminster, S.W., 4th July, 1884. Referring to your telegram of the 30th ultimo as follows, " This colcny joins in paving proportion of fifteen thousand New Guinea expenses," I have the honour to inform you that immediately upon its receipt I communicated your message to Lord Derby ; and, by appointment, Sir Francis Dillon Bell, Mr. R. Murray Smith, Mr. Hemmant, and myself had on Wednesday an interview with his Lordship, I regret to say without any definite result. We informed Lord Derby that five of the Australian Colonies were prepared to guarantee the payment of £15,000 (the amount named in his Lordship's despatch of the 9th May to the Governors of the Australasian Colonies), on the understanding that a complete protectorate would be established over New Guinea and, if possible, the islands adjacent thereto. Lord Derby, after discussing the matter at great length with the Agents-General, stated that he would at the earliest possible moment submit the whole question to the Cabinet, and communicate the decision of the Government to the Agents-General. I will address you more fully on this subject by next mail. I have, &c, Saul Samuel.

No. 4. The Agent-General to the Colonial Secretary. Sic, — 5, Westminster Chambers, Westminster, S.W., 17th July, 1884. Referring to my last letter, of the 4th instant, reporting an interview of the Agents-General with Lord Derby relating to New Guinea, in which I promised further particulars, I have now the honour to forward, for your information, a copy of a minute which the Agents-General who were present at the interview agree to as being substantially a correct statement of the conversation which took place between Lord Derby and themselves on the 2nd instant. I have, &c, Saul Samuel.