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No. 20. (No. 60.) My Lord, — Government House, Wellington, 23rd December, 1893. I have the honour to acknowledge your despatch (New Zealand, No. 42) of the 30th August last, in which you express the regret of Her Majesty's Government at the action taken by the Governments of Queensland and New South Wales in establishing telegraphic communication with New Caledonia, as implying a departure from the principles with regard to colonial cohesion and Imperial interests. Having referred your Lordship's despatch to my Ministers, I have the honour to inform you that they do not share the views of the Government of Victoria that the independent action of the Governments of New South Wales and Queensland has placed the colonies in an embarrassing position ; it is agreed, with Her Majesty's Government, as to the danger in time of war if the Pacific cable passed through New Caledonia ; but it is understood that steps are being taken to secure the laying of a cable entirely through British territory, and that there is hardly any prospect of the cable which has been successfully laid to New Caledonia being continued across the Pacific. I have, &c, GLASGOW. The Eight Hon. the Marquis of Ripon, G.C.M.G., &o.

A.-2, 1894, No. 23.

No. 21. (No. 61.) My Lord, — Government House, Wellington, 26th December, 1893. I propose in this despatch, with your permission, to refer to the connection between this colony and the Cook Group of islands, and to state for your Lordship's consideration the reasons why I am of opinion that the intermediary position which this colony holds between the islands in question and the Colonial Office should no longer be maintained. 2. In consequence of an understanding arrived at between Her Majesty's Secretary of State and the New Zealand Government, on the 25th November, 1890, Mr. F. J. Moss, then a member of the House of Eepresentatives, was appointed British Resident at Rarotonga, in place of the Acting-Consul, Mr. Exham, who had until then looked after British interests there. The necessary instructions for Mr. Moss's guidance were issued by the Governor, with the advice of his Ministers, and since that date all correspondence regarding the maintenance of order and good government in the group has passed between the Resident and the Governor of New Zealand, and by the latter has been forwarded to the Colonial Office. 3. The principal if not the only reason which appears to have caused the New Zealand Government to desire this arrangement was, as I understand, in order that colonial trade with the islands might be stimulated and encouraged, and it was thought that bringing the group into closer connection with the colony would have that effect; but there are grounds for believing that the trade of these islands will naturally gravitate to this colony without any artificial means of guiding it into New Zealand, channels. 4. The objections to the present arrangement appear to be as follows: — (a.) The natural channel for transmission of all Pacific islands correspondence to the Colonial Office is undoubtedly the High Commissioner. He is an important officer, chosen for his experience among the Pacific islands, and his acquaintance with their wants, their manners and customs ; and it appears unadvisable that one group of these islands should lose his able supervision. On all questions connected with the islands he possesses the necessary qualifications for dealing authoritatively with them, qualifications which have hitherto not been considered a necessary attribute of the Governor of this colony. (b.) The proximity of these islands to the French colony of Tahiti has already on one occasion caused correspondence between the French Government and the British Resident—namely, the extradition of a criminal wanted at Tahiti. It is possible to conceive of occasions arising when the experience and advice of the High Commissioner might be of service to the Resident.