A.—2

15

The Bomen Courier goes on to say that, as there will at once be a clamour for reprisals, it is well to consider this question: " The German imports from New Zealand are very small. In 1902 Hamburg imported 6,335 pounds' worth of floods only, amongst which are: Rubber and copal, £2,665; grass-seeds, £1,689; wool, £950. In the two previous years, however, the importation had been rather larger, namely, £33,985 ir, 1901, and (including £20,000 for wheat and £8,700 for seeds) £28,203 in 1900 (including wheat, £13,615; wool, £4,307; and hemp, £757)." These facts do not, it is added, promise any success for retaliatory measures. Berlin, 28th November, 1903. William S. H. Gastbell.

No. 28. (Circular.) Sir, — Downing Street, 9th January, 1904. With reference to my predecessor's circular despatch of the 12th September. 1901, I have the honour to transmit to you, for the information of your Government, copies of a notification of the Bundesrath which has been issued prolonging after the 31st December, 1903, the provisions contained in their last notification of the 11th June, 1901, respecting German commercial relations with the British Empire, and of a memorandum on the subject prepared by the Commercial Attache to His Majesty's Embassy at Berlin. I have caused the information contained in these papers to be conveyed to you by telegram, as it supplements and modifies that contained in my recent despatch of the 19th ultimo on this subject. T have, &c, ALFRED LYTTELTON. The Officer Administering the Government of New Zealand

Enclosures. Memorandum on Commercial Relations with the British Empire. The ReAchxaiizeiger of this evening publishes the text of the law recently passed by the Reichstag, which authorised the Bundesrath to grant most-favoured-nation treatment to the British Empire up to 31st December, 1905, a translation of which has already been forwarded. Below that law the formal notification of the Bundesrath is now published, which in the present instance does not even mention by name any country as exempted from the benefits of such treatment, but it provides that the same conditions as prevailed in the last similar notification of the 11th June, 1901, shall continue to be in force after the 31st December, 1903, until further notice. A copy and translation of this notification are enclosed herewith. It will be remembered that the notification of 1901 excluded Canada from the privilege of most-favoured-nation treatment. Under the wording of the new notification, therefore, the Dominion of Canada still continue* to be exempted, as before. No action is taken at present to exempt the imports from the Cape and New Zealand from the benefits of most-favoured-nation treatment in view of the preferences recently accorded by those countries to goods imported from Great Britain. Berlin, 30th December, 1903. William S. H. Gastrell. .V, yin cation concerning the Commercial Relations with the British Empire. (Of 30th December 1903.) By virtue of the foregoing law the Bundesrath has decided to prolong the duration of the provisions contained in the notification of the 11th June, 1901 (Reiehsgesttzblatt, page 205), beyond the 31st December, 1903, until further notice. For the Imperial Chancellor. Graf Yon Posadowsky. Berlin, 30th December, 1903.

• No. 29. (No. 5.) My Lord,— Downing Street, 30th January, 1904. I have the honour to transmit to you, for the information of your Ministers, the papers noted in the subjoined schedule. I have, &c, ALFRED LYTTELTON. The Officer Administering the Government of New Zealand.