7

A.—2

Enclosure. The Wallsall and District Incorporated Chamber of Commerce Offices, The Bridge, Walsall, 4th June, 1896. Sib, — The New Zealand Income Assessment Act. Your favour of the 14th ultimo and its enclosures— -i.e., copies of a despatch from the Governor of New Zealand and a memorandum from the colonial Commissioner of Taxes—were considered by my council at their meeting on the Ist instant. In reply thereto my council have requested me to point out that the claim of the Commissioner of Taxes that " the principle of levying taxes on profits of outsiders is no new one, and that in England the same principle is enforced" is incorrect. It was decided in the House of Lords on the Ist May last, before the Lords of Appeal—Lords Herschell, Watson, Macnaughten, Morris, Shand, and Davey—that " foreign firms having agents in this country are not liable for income-tax on the business done in this country through such agents." My council further submit that there is no inconsistency in their objection to the tax of £50 placed upon commercial travellers entering the colony. It is true that in their letter of July, 1895, whilst strongly protesting against the tax in any form whatever, as contrary to the best interests of trade, and likely to impede the free course of business between the colony and this country, my council preferred, if it were necessary for revenue purposes to impose a tax at all, a direct tax upon travellers of, at the utmost, £20; but my council would respectfully point out that, considering the few travellers entering the colony, even at £50, the income therefrom would be very meagre, and of no consequence to the revenues of the colony. What my council objected to was that the maximum of £50 should have been fixed while it is within the power of the Governor to fix any amount from £1 up to £50. My council venture to hope that this tax may be reduced to £10. They beg to point out that at Cape Colony, where this tax is the highest in force, only £12 10s. is levied for six months—a time ample for a traveller's business; and, as shown in my communication to you of the 2nd ultimo, many other colonies and foreign stations charge nothing, and where they do charge it is only a small sum. I am, &c, Albeet Law, Secretary. The Eight Hon. Jos. Chamberlain, M.P., Secretary of State for the Colonies.

No. 11. (General.) My Lord, — Downing Street, 21st July, 1896. With reference to your Lordship's despatch, No. 64, of the 29th November, 1894, enclosing the draft of the proposed regulations to govern the issue of medals for distinguished conduct for meritorious service, and for long service and good conduct to the permanent local Forces, and also the issue of the Volunteer long-service medal, I have the honour to transmit to you a copy of a memorandum containing the observations of the War Department on these regulations; and I have to state that, if the draft regulations relating to the Permanent Forces are amended in accordance therewith, there is no objection to their being at once issued, and that on receipt of a copy so amended my formal approval will be conveyed to you. The Secretary of State for War has expressed his general opinion that each class of medal should have the name of the colony on the reverse, and the ribbon should have one line of the colonial colour (other than red) down the centre, the colour being, for preference, different for each colony ; and also that the meritorious-service medal for the colonies should have " Victoria Regina et Imperatrix " in lieu of " Victoria Regina " on the obverse. A separate communication will be addressed to you regarding the Volunteer long-service medal. I have, &c, J. CHAMBERLAIN. Governor the Right Hon. the Earl of Glasgow, G.C.M.G., &c.

A.-l, 1895, No. 8.

No. 12. Sib, — Downing Street, 11th August, 1896. I have the honour to transmit to you a copy of a letter from the Eoyal Commission on Tuberculosis, asking to be supplied with copies of all laws, rules, and regulations enforced in the colony under your government dealing with the subject of meat- and milk-inspection, with especial reference to tuberculosis.