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It would have been more in accordance with the traditional policy of this country if the Bill had been framed on the lines of the Natal Act, copy of which is enclosed, so as to secure the object aimed at without basing the exclusion on the ground of race and colour. As, however, the Bill does not apply to British Indian subjects, Her Majesty's Government are not prepared to press this objection; but there are some minor points which I should wish your Ministers to consider, with a view to amendment, before the Bill is submitted for an expression of Her Majesty's pleasure. The intention of the Bill, as I understand it, is not to restrict commercial intercourse with Asiatic countries, but to prevent immigration for the purpose of labour or settlement. The Bill, however, makes no exemptions such as are contained in the Bills passed by New South Wales and South Australia in favour of merchants, tourists, &c, nor does it contain any provision empowering the Executive to exempt by Proclamation any particular person or class of persons. A vessel having on board a coloured shipwrecked crew of an abandoned vessel would therefore be unable to put into a New Zealand port. I observe also that the penalties imposed by the Bill are for carrying more Asiatics than the specified number, not for landing them, which I presume can hardly have been intended. Section 17 (1) of the Bill, which provides that every Asiatic not already naturalised within the colony is hereby declared to be an alien within the meaning of " The Aliens Act, 1880," is open to the construction that it is intended to make aliens of Asiatics in the colony who are British subjects by birth. I have no doubt that this is not intended, as it would be in excess of the powers of the colonial Legislature, and it is desirable that some words should be added to make it clear that the rights and status of British subjects by birth are not affected. If the amendments are made, I shall be prepared to submit the measure for her Majesty's assent. I have, &c, J. CHAMBEELAIN. Governor the Eight Hon. the Earl of Eanfurly, K.0.M.G., &c.

Enclosure. THE IMMIGRATION RESTRICTION ACT, 1897. Arbangement of Clauses. Preamble. 11. Offence of assisting in contraventions. 1. Short title. 12. Offence of assisting contravention by persons named 2. Exemptions. in section 3 (/). 3. Prohibited immigrants. 13. Bringing insane porsons into colony. 4. Unlawful entry of prohibited immigrants. 14. Powers of police to prevent entry. 5. Entry permitted on certain conditions. 15. Officers for carrying out Act. 6. Persons formerly domiciled in Natal. 16. Rules. 7. Wives and children. 17. Punishments. 8. Liability of masters and owners of ship for illegal 18. Jurisdiction of Magistrates. landing of immigrants. Schedule A. 9. Disabilities of prohibited immigrants. Schedule B. 10. Contract for return of prohibited immigrants.

[No. 1, 1897.] Walter Hely-Hutchinson, Governor. Act to place certain Eestrictions on Immigration. Whereas it is desirable to place certain restrictions on immigration : Be it therefore enacted by the Queen's Most Excellent Majesty, by and with the advice and consent of the Legislative Council and Legislative Assembly of Natal, as follows:— 1. This Act may be known as " The Immigration Eestriction Act, 1897." 2. This Act shall not apply to— (a.) Any person possessed of a certificate in the form set out in the Schedule A to this Act annexed, and signed by the Colonial Secretary, or the Agent-General of Natal, or any officer appointed by the Natal Government for the purposes of this Act, whether in or out of Natal. (b.) Any person of a class for whose immigration into Natal provision is made by law or by a scheme approved by Government. (c.) Any person specially exempted from the operation of this Act by a writing under the hand of the Colonial Secretary.