A.—l.

Sir James Prendergast's report I cannot form my opinion as to the direction such changes should take. In conclusion, I desire to add that my Premier agrees with me in the course adopted. I have, &c, The Eight Hon. J. Chamberlain, M.P., &c, EANFUELY. Secretary of State for the Colonies.

No. 22. (No. 78.) Sib, — Government House, Wellington, 23rd December, 1897. In reply to your despatches—New Zealand, No. 15, dated the 30th April, 1897, and New Zealand, No. 43, dated the 12th August, 1897 —with reference to " The Shipping and Seamen's Act Amendment Act, 189(3," I have the honour to submit to you a copy of a memorandum addressed by the Premier to myself relative to the same. Owing to the technical manner in which the matter has been dealt with, I considered this course would be advisable. I have, &c, The Right Hon. J. Chamberlain, M.P., &c, EANFUELY. Secretary of State for the Colonies.

A.-2, 1898 Nos.2, 23.

Enclosure. Memorandum for His Excellency the Governor. Premier's Office, Wellington, 16th December, 1897. The Premier presents his compliments to His Excellency the Governor, and begs to advise that the following reply be sent to the Secretary of State for the Colonies on the subject of his despatch No. 15, of the 30th April, 1897, relative to " The Shipping and Seamen's Act Amendment Act, 1896 " :— Section 2:lt is submitted there is nothing in this section repugnant to the Imperial Act. As a matter of fact, nearly all the larger steamships trading to New Zealand have third and fourth engineers. This enactment, which is only operative in the colony, provides that engineers shall rate as officers, the object merely being to determine their status on board ship. Sections 4-6 : These sections enable a third-class certificate of competency to be granted to engineers, and the objection is that there is no similar class in England, and that it applies to all ships. It is submitted this provision is not open to legal objection on the ground that such certificates are not provided for in England. It is true the Imperial Merchant Shipping Act only provides for first- and second-class engineers, but the requirement of an additional engineer for the purpose of greater safety and efficiency can hardly be called an enactment opposed to English law. The operation of these sections is limited by 7-9, hereafter referred to. Sections 7-9 : The 28th section of the New Zealand " Shipping and Seamen's Act, 1877," required every foreign-going steamship to carry certain engineers, according to the nominal horse-power of the vessel. Section 7of the present Act amends this by requiring additional engineers to be carried according to a scale of indicated horse-power. Section 8 provides for adequate ventilation of engineers' rooms, and only applies to ships registered in future in the colony. Section 9 limits these enactments to foreign steamships trading within the limits prescribed in the case of intercolonial trading ships. It is admitted by the legal adviser of the Board of Trade that prior local legislation in regard to intercolonial vessels passed in 1894 (section 7) and in 1895 (section 6) was not disallowed, and the Premier has mentioned above that the principal Act of 1877 purported to apply to "every foreign-going steamship." It may therefore have been considered by the General Assembly that, as these laws passed in 1877, 1894, and 1895 had not been objected to, no question would be raised to the further amendment of 1896, which is in the direction of making the law more effective, having regard to the development of steam navigation in the colony. Sections 10 and 11 : As to section 10, it is submitted this clearly applies to vessels while engaged in the coastal trade. The first proviso distinctly negatives the application of the section to ships from abroad which do not carry on coasting trade in the colony. Section 11 seems to be the necessary complement of section 10, and only affects cases where the vessel has engaged in the coasting trade. It is designed to secure fair-play to the local shipowner and those bond fide carrying on the coastal trade. Contracts made in the United Kingdom which are to operate in New Zealand must be subject to the local law; and, as the colony is empowered to make laws regulating the coastal trade, it would seem these enactments are valid. Section 18: This does not appear to call for' remark, as it is admitted by the adviser of the Board of Trade that, as earlier legislation on the subject, so far as it affects intercolonial trade, has not been objected to, none will be taken to this section. Regarding the objections as a whole, the Premier thinks the foregoing remarks tend to show that, as regards sections 2 and 4-6, there is no such repugnancy to the Imperial "Merchant Shipping Act, 1894," as would render the enactments illegal; that, as to sections 7-9, local legis-