A.—2

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2. The Army Council have been informed accordingly, and I trust that these trophies will be received in New Zealand at an early date. I have, &c, ALFEED LYTTELTON. Governor Lord Plunket, X.C.V.0., &c.

No. 16. (No. 53.) My Lord, — Downing Street, 6th August, 1904. I have the honour to transmit to your Lordship, for any observations that your Ministers may wish to make, a copy of a letter from the Foreign Office, enclosing a note from the Belgian Minister, putting forward suggestions for a commercial agreement with New Zealand. 2. I have also to forward, for the information of your Ministers, a copy of the letter from this office, of the 2nd February last, referred to in paragraph 1 of the Foreign Office letter, together with a copy of the letter to which it was a reply. 3. In my telegram of the 25th January last I stated that I assumed that your Ministers realised that any advantage which might be granted to a foreign Government in future by virtue of any reciprocal arrangement under section 13 of Act No. 78 of 1903 could not be withheld from a third foreign Power entitled by treaty to most-favoured-nation treatment in New Zealand. I have, &c, ALFEED LYTTELTON. Governor Lord Plunket, X.C.V.0., &c.

Enclosures. Sir,— Foreign Office, 15th July, 1904. With reference to your letter, 2824/04, of 2nd February last, I am directed by the Marquess of Lansdowne to transmit herewith copy of a further note from the Belgian Minister, putting forward suggestions for a commercial agreement with New Zealand under the provisions of the law of the 24th November, 1903, passed by the New Zealand Government. I am also to enclose a copy of the Belgian law of the 19th May, 1902, Article 2 of which is referred to by Count de Lalaing, and at the same time to draw attention to the last paragraph of the letter from this office of the 22nd January last as to the obligation on the part of New Zealand to extend any advantages which may be granted to a foreign State, by virtue of a reciprocal arrangement, to any third Power entitled by treaty to most-favoured-nation treatment. I am, &c, The Under-Secretary of State, Colonial Office. E. Gorst.

Sir, — Foreign Office, 26th January, 1904. I am directed by the Marquess of Lansdowne to transmit herewith, to be laid before Mr. Secretary Lyttelton, the accompanying copy of a memorandum left at this office by the Belgian Minister in London, containing certain inquiries respecting the New Zealand Preferential Tariff Act, 3 Ed. VII. Lord Lansdowne proposes, with reference to Count de Lalaing's first question, to refer him to section 58 of the New Zealand Government Act (1852, 15 and 16 Vict., Chap. 72), which empowers the Crown, within two years after the receipt of any Bill assented to by the Governor of New Zealand, to declare by Order in Council its disallowance of such Bill: But his Lordship would be glad to know if t'je Secretary of State for the Colonies concurs, and he would also desire to be favoured with Mr. Lyttelton's opinion as to the reply which should be returned to the Belgian Minister's second and third queries. I am, &c, The Under-Secretary of State, Colonial Office. F. A. Campbell.

Tariff System of New Zealand. A law recently voted by Parliament in New Zealand establishes a preferential tariff in favour of British products. Article 10 of this law empowers the Government of New Zealand to make arrangements with foreign cormtries in view of the reduction or abolition of import duties on the goods of the said foreign countries, provided that these countries grant equivalent concessions to goods imported from New Zealand. Is not the sanction of the British Government necessary before the above-mentioned law can be put into execution ? Should not all arrangements between New Zealand and foreign States (see Article 10) be first subject to the approval of the British Government ? If so, is this approval a mere constitutional formality 1