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Enclosure. The Pacific Islands Company, 120-123, Fenchurch Street, Sib,— London, 13th May, 1902. Referring to my letter of 6th instant, I am now instructed by my directors to reply to your letter of 30th April (No. 14928), 1902. I am instructed to ask whether, considering that the lease of the two islands of Suwarrow and Christmas will be virtually cancelled when Christmas Island is included in the new lease for the ten islands for ninety-nine years, which it is proposed to issue to Messrs. Lever Brothers (Limited), it would not be possible for a new lease for Suwarrow Island only to be granted by His Maiesty's Government for the remaining term, in order that Messrs. Lever Brothers may be able to approach the Government of New Zealand with a view of obtaining a like concession for ninety-nice years. It is presumed that the reservation for naval purposes will not interfere with the commercial operations of Messrs. Lever Brothers (Limited). I have, &c, A. J. Reeves, Secretary. The Under-Secretary of State, Colonial Office, Downing Street, S.W.

Sir,— Downing Street, 22nd May, 1902. I am directed by Mr. Secretary Chamberlain to acknowledge the receipt of your letter of the 13th instant respecting the case of Suwarrow Island in the Pacific Ocean. 2. In reply I am to inform you that, as the island is now part of New Zealand, any new lease must be issued by the Government of that colony, to which application should be addressed. 3. Mr. Chamberlain is communicating with the Admiralty on the subject of the reservation of land for naval purposes, and will cause a further letter to be addressed to you as soon as a reply is received from that Department. I am, &c, The Secretary, Pacific Islands Company (Limited). H. Bertram Cox.

Sir,— ' Downing Street, 18th June, 1902. With reference to the letter from this Department of the 22nd ultimo, I am directed by Mr. Secretary Chamberlain to request you to inform the Pacific Islands Company that a letter has been received from the Admiralty stating that the Lords Commissioners have no intention of interfering with commercial operations on the lands in Suwarrow Island now vested in them until those lands are required for naval purposes. 2. A copy of the correspondence is being sent to the Governor of New Zealand. I am, &c, The Secretary, Pacific Islands Company. H. Bertram Cox.

No. 25. (No. 58.) My Lord, — Downing Street, 19th June, 1902. With reference to your despatch (No. 13) of the sth March, I have the honour to transmit to you, for the information of your Minister, the paper noted in the subjoined schedule. I have, &c, J. CHAMBERLAIN. The Officer Administering the Government of New Zealand.

A.-l, 1902 No. 78.

Date. From To Subject. 3th May, 1902 !2nd May, 1902 8th June, 1902 - Pacific Islands Colonial Office Company ... j Colonial Office | Pacific Islands Company Colonial Office Pacific Islands Company Suwarrow J lands. Island : lease, and naval

Date. Prom To Subject. 11th June, 1902 Admiralty Colonial Office The use of Bluff Harbour by vessels of large tonnage.