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I transmit to you, for communication to your Government, a copy of a letter from the Board of Treasury in reference to this Act. I have, &c, CAENAEVON. Governor the Eight Hon. Sir J. Eergusson, Bart.

Enclosure in No. 2. Sic, — Treasury Chambers, 27th April, 1874. The Lords Commissioners of Her Majesty's Treasury have had before them the Act of the Legislature of New Zealand, "To authorize the raising of Money for Railways and Purchase of Native Lands," enclosed in Mr. Herbert's letter of 23rd February last. Their Lordships have directed me to request that the attention of the Secretary of State may be drawn to the 20th section of this Act, by which " any part of the loan guaranteed by the Lords of the Treasury under certain Acts of the Imperial Parliament may be applied to any of the purposes to which is applicable that part of the loan authorized by this Act to be raised for purposes of railways." The Secretary of State is aware that the Imperial Act 33-34 Vict. cap. 40, limits the purposes to which the loan of £1,000,000 guaranteed by this Board under the provisions of that Act may be applied to the construction of roads, bridges, and communications, and the introduction of settlers into the colony. Their Lordships presume that there is no intention on the part of the New Zealand Government to apply the moneys raised under the guarantee to purposes not provided by the Act; but as a doubt may arise with regard to the strict interpretation of the 20th section of the Act now submitted for the consideration of this Board, they would suggest that the New Zealand Government should be informed that it must bo clearly understood that their Lordships havo no power to consent to the application of the guaranteed loan except iv conformity with tho provisions of the Act 33-34 Vict. cap. 40. I have, &c., The Under Secretary of State, James H. Cole, Colonial Office. (for Secretary).

No. 3. Copy of a DESPATCH from the Eight Hon. the Earl of Carnarvon to Governor the Eight Hon. Sir J. Eergusson, Bart. (No. 17.) Sir, — Downing Street, Bth May, 1874. I have to acknowledge the receipt of your Despatch No. 12, of the 2nd of March, in answer to my predecessor's of the 12th of December, No. 85, on the subject of the presence of Her Majesty's ships on the coast of New Zealand. I have to refer you to my Circular Despatch of the 23rd of March, enclosing a letter from the Lords Commissioners of the Admiralty, in which they state the effect of the orders which have been given to the Commodore on the station with respect to the visits of Her Majesty's ships to the Australasian Colonies. I have, &c, Governor the Eight Hon. Sir J. Eergusson, Bart. CAENAEVON.

No. 4. Copy of a DESPATCH from the Eight Hon. the Earl of Carnarvon to Governor the Eight Hon. Sir J. Eergusson, Bart. (No. 21.) Sir,— Downing Street, 20th May, 1874. I have to acknowledge the receipt of your Despatch No. 12, of the 2nd of March, representing the advantage arising from the visits of Her Majesty's ships to the coasts of New Zealand. I caused your Despatch to be communicated to the Lords Commissioners of the Admiralty, and I transmit to you a copy of their reply. A copy of the letter of the 16th of March, to which their Lordships refer, was enclosed in my Circular Despatch of the 23rd of that month. I have, &c, Governor the Eight Hon. Sir J. Eergusson, Bart. CAENABVON.