A.—7.

Article LXV. ; Functions of the Councils. The Councils shall pass the annual municipal budget, vote the necessary local taxation, initiate and carry out municipal works, decide upon the establishment of schools and charitable institutions, and, in general, take all measures necessary for the welfare of the local community. Article LXVI. Temporary Provisions. The two existing municipal bodies in the Island of Efate shall be recognised as municipalities. Members of these bodies may continue to hold office till the termination of the period for which they were elected. Article LXVII. Supplementary Regulations. The High Commissioners or their Delegates shall prescribe jointly the regulations for enforcing the provisions of Articles LXII to LXVI. Final Provision. Article LXVIII. Duration of the Convention. The provisions laid down by the present Convention shall remain in force until new provisions are substituted in virtue of an Agreement between the Signatory Powers. In witness whereof the undersigned Delegates have drawn up and signed the present Protocol. Done in London, in duplicate, the 27th day of February, in the year of our Lord 1906. (Signed) Eldon Gorst. - Hugh Bertram Cox. Saint-Germain. E. PICANON. The present Convention shall come into operation as soon as it is proclaimed in the Group by the two High Commissioners or their Delegates acting in concert, such proclamation to be made as soon as possible. In witness whereof the Undersigned have signed the present Convention and have affixed thereto their seals. Done in duplicate at London, the 20th October, 1906. (L.S.) E. Grey. (L.S.) Paul Cambon.

SCHEDULE 11. PART 11. Sir Edward Grey to M. Geoppray. New Hebrides. Foreign Office, M. le Ministre, August 29, 1907. The British Delegates on the Anglo-French Commission which met in London in May last to discuss the arrangements to be made under Article X, section 4 of the Convention of the 20th October, 1906, respecting the New Hebrides, have submitted the results of their discussions to His Majesty's Government. I have now the honour to inform you that His Majesty's Government approve the recommendations of the Commission, and I am glad at the same time to be able to record my appreciation of the conciliatory spirit in which its discussions were carried on. His Majesty's Government concur fully in the Regulations drawn up in order to give effect to Article X. (4) of the New Hebrides Convention, which are annexed hereto (Annex 1). These Regulations will be considered as forming part of the aforesaid Article X, and will be promulgated simultaneously with that Article. In accordance with recommendations made after semi-official discussions between the Representatives of the two Governments, His Majesty's Government will instruct the British High Commissioner to omit from the text of the Convention to be published and made binding on British subjects in the Group the following words which occur in Article LI (4), " after two written warnings addressed to the employer " provided that the French Government deal similarly with the corresponding words in the French text, " apres deux avertissements donnes par ecrit a I'engagiste." His Majesty's Government will authorise the British High Commissioner to postpone, with the concurrence of the French High Commissioner, the promulgation of Articles IX (2), XI to XIX inclusive, XXI to XXVII inclusive, LVI (3), LX (3 and 4), and LXI (2) until the Judges of the Joint Court have entered upon their duties in the Group.

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