A.-l.

V. The present Permanent Militia Force was, by clauses 73 and 80 of " The Defence Act, 1886," formed from the Armed Constabulary Force, the last-mentioned Force having been raised about the year 1868, and served throughout the Native war from that time until peace between the two races was proclaimed. The Permanent Militia have since their embodiment also done field duty in several cases where it was expected that the Natives would make a breach of the peace. The Volunteer Force has also been called out during the Native wars for active service, as also many of the corps in 1881 during the Te Whiti disturbance at Parihaka. VI. The uniform of the Permanent Militia is that laid down on pages 9 and 10 of the New Zealand Dress Eegulations (a copy of which is enclosed). Volunteer Corps are allowed to adopt such uniform as they respectively think fit, provided that the specifications of such are first submitted to the Commander of the Forces for his approval, and, if necessary, modification of specifications. All corps must, however, provide themselves with a field service khaki uniform. VII. The Forces are administered by the Commandant of the Forces; questions relating to expenditure being dealt with by the Under-Secretary for Defence, the Forces being organized under " The Defence Act, 1886," and " The Defence Act Amendment Act, 1900." The officers of the Volunteer Force below the rank of field officer are elected by the respective corps. I have, &c, The Eight Hon. J. Chamberlain, EANFUELY. Secretary of State for the Colonies.

No. 27. (No. 52.) Sir, — Government House, Wellington, 27th June, 1901. In reply to your despatch (No. 35) dated the 21st March, 1901, on the question of " The New Zealand Ensign Act, 1900," reserved, I have the honour to forward you, by request of my Premier, a copy of a memorandum I have received from him. I have, &c, The Eight Hon. J. Chamberlain, EANFUELY, Secretary of State for the Colonies.

A.-2, 1902, No. 30.

Enclosure. Memorandum for His Excellency the Governor. The Premier presents his compliments to His Excellency the Governor, and, in reply to despatch No. 551/1901 in respect to the reserved Bill entitled " The New Zealand Ensign Act, 1900," desires that His Excellency will be good enough to forward the following memorandum in reply thereto. My Ministers appreciate the force of the objections raised by the Lords Commissioners of the Admiralty to the New Zealand Ensign Bill in its present form, and, in order to meet them, suggest that the Bill be modified by providing that the ensign may be used for all purposes ashore, but shall not be worn by any vessel other than the vessels owned and used by the New Zealand Government, except in pursuance of a warrant from His Majesty or the Admiralty. The right to use the blue ensign with the Southern Cross, represented by four five-pointed red stars with white border, was granted in 1869 (see New Zealand Gazette, 1869, page 556). This authority has evidently been overlooked. With respect to Sir Robert Stout's despatch No. 80, and your remarks thereon, my Ministers regret that, owing to an unfortunate inadvertency, Sir Robert Stout, in forwarding copies of the memoranda that had passed between himself and the Premier in regard to the reservation clause, should have omitted to forward copy of the initial memorandum on which the whole question at issue turned. It is as follows :— " The New Zealand Ensign Act, 1900." For the Right Hon. the Premier. Section 4of this Bill seems to invade the prerogative of the Governor. I doubt if the two Houses ought to put in a Bill thai it should be reserved. It is for the Governor to express his opinion on the subject in aceordanoe with the law. Robebt Stout, Deputy Governor.

A.-l, 1901, No. 43.

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