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No. 38. New Zealand, No. 126. My Lord,— Government House, Wellington, 29th September, 1910. I have the honour to acknowledge the receipt of your Lordship's despatch of the 30th June last, No. 133, regarding the exportation of animals for breeding purposes; and, in reply, to enclose herewith copy of a memorandum from my Prime Minister on the subject. I have, &c, ISLINGTON, Governor. The Right Hon. the Earl of Crewe, K.G., P.C., &c, Secretary of State for the Colonies.

Enclosure. Prime Minister's Office, Wellington, 27th September, 1910. Memorandum for His Excellency the Governor. The Prime Minister presents his compliments to His Excellency the Governor, and begs to furnish the following information in response to the inquiry from the Secretary of State for the Colonies regarding the encouragement of the exportation of live-stock, forwarded under cover of the attached Government House record. The greater proportion of live-stock imported into the Dominion comes from Great Britain, and the merits of the various breeds are well known, though doubtless judicious advertising would do no harm. The importation of live-stock would be encouraged if a reduction in the freight on animals could be secured. This ranges from .£50 to £40 each for horses, £30 for cattle, .£6 to £5 for sheep, and £8 for pigs. The presence of tuberculosis in the herds of Great Britain is often a drawback to the purchase of cattle, as sometimes after a beast has been selected as suitable the tuberculin test reveals that it is affected, and the search has to be begun again. In the interests of its live-stock owners, the Dominion finds it necessary to maintain its present quarantine regulations. Under these, cattle, sheep, and swine have to undergo a period of quarantine, but horses from Great Britain are admitted if they pass the mallein test and are otherwise healthy. Associations exist here for the registration of pedigree animals, and there is no difficulty or, this score if the papers in connection with the imported animals are in order. The tuberculin test is largely used in New Zealand, and found most reliable. No cattle are allowed to be imported until they have successfully passed this test. In regard to the export of live-stock from New Zealand, no direct encouragement is given by the Government. A large export trade with Australia in horses has been built up by private enterprise. Our sheep were recently brought under the notice of Argentine, several animals being exhibited by their owners at the centennial show. Encouragement has been given indirectly by the Government to this industry by importing and placing at the disposal of breeders high-class stallions and bulls, and by a system of inspection of stock, and veterinary instruction and advice. Officers also examine, and issue a certificate of freedom from disease to, all animals exported. J. G. Ward, Prime Minister.

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No. 39. New Zealand, No. 128. My Lord, — Government House, Wellington, 29th September, 1910. I have the honour to transmit herewith copy of a memorandum received from my Prime Minister, covering a memorial signed by the inhabitants of the Chatham Islands, expressing sympathy with Her Majesty Queen Alexandra at the death of our late beloved Sovereign King Edward VII, and also a memorial conveying sympathy to His Majesty the King, and assuring His Majesty of their loyalty to the Crown. I have, &c, ISLINGTON, Governor. The Right Hon. the Earl of Crewe, K.G., P.C., &c, Seeretarv of State for the Colonies.