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Enclosures. The Earl of Derby to Lord Augustus Loftus. (New South Wales, No. 1?.) My Lord, — Downing Street, 20th September, 1883. I have the honour to transmit to your Lordship the enclosed copies of a correspondence between the Admiralty and this Department relating to the use of a flag known as the " Australian Colours " on board vessels and boats belonging to the Australian Colonies. I should be glad if you will obtain from your Ministers information in regard to the origin and use of this flag, which you will observe the Lords Commissioners of the Admiralty are of opinion should be discontinued on account of the close resemblance of the flag to the white ensign of Her Majesty's fleet. . I have, &c. Governor the Eight Hon. Lord Augustus Loftus, G.C.B. &c. Derby.

The Admiralty to the Colonial Office. (L. 112.) Sir, — Admiralty, 21st February, 1883. I am commanded by my Lords Commissioners of the Admiralty to request you will call the attention of the Secretary of State for the Colonies to the enclosed drawing of a flag stated to be commonly worn by boats and small vessels on the Australian Station, and which is called the " Australian Colours ;•" and I am to request you will cause their Lordships to be informed whether any authority has been given for the wearing of this flag by Australian vessels, as none can be traced at the Admiralty. 2. My Lords would further observe that this flag at a distance would closely resemble the white ensign worn by British men-of-war. 3. It is requested that the enclosure may be returned. I am, &c, The Under-Secretary of State, Colonial Office. G. Tryon.

The Colonial Office to the Admiralty. Sir,— Downing Street, 13th March, 1883. In reply to your letter of the 21st ultimo respecting a certain flag which is stated to be commonly carried by boats and small vessels on the Australian Station, and which is called the " Australian Colours," I am directed by the Earl of Derby to request that the Lords Commissioners of the Admiralty will be so good as to ascertain from Admiral Wilson whether this flag is universally used in Australian waters, or only in the waters or by the vessels of any particular colony. I am, &c. The Secretary to the Admiralty. J. Bramston.

The Admiralty to the Colonial Office. (L. 920.) Sir,— Admiralty, 11th April, 1883. With reference to your letter of the 13th ultimo, and to previous correspondence relative to the use of a flag known as the " Australian Colours," and alleged to be worn on board the vessels and boats belonging to the Australian Colonies, I am commanded by my Lords Commissioners of the Admiralty to acquaint you, for the information of the Earl of Derby, that Admiral Wilson, who lately commanded on that station, having been referred to, has been unable to furnish the requisite information; and my Lords have therefore called upon Commodore Erskine, the Senior Naval Officer now on the Australian Station, to report on the subject, and his answers will be communicated to Lord Derby as soon as received. I am, &c. The Under-Secretary of State, Colonial Office. G. Tryon.

The Admiralty to the Colonial Office. (L. 2134.) Sir, — Admiralty, 10th September, 1883. With reference to my letter of the 11th of April last, L. 920, and to former correspondence 4>lative to the use of a flag known as the " Australian Colours " on board the vessels and boats belonging to the Australian Colonies, I am commanded by my Lords Commissioners of the Admiralty to transmit to you herewith, for the information of the Secretary of State for the Colonies, a copy of a letter from Commodore Erskine on the subject, observing that my Lords are of opinion that the use of this flag should be discontinued on account of its close resemblance to the white ensign of Her Majesty's fleet. I am, &c. The Under-Secretary of State, Colonial Office. G. W. Swainson.

Flags in Use by Merchant Vessels on the Australian Station. (No. 172.) Sir,— " Nelson," at Suva, Fiji, 30th June, 1883. With reference to Admiralty letter, L. 690, No. 61, of the 11th April last, I have the honour to report as follows : — 2. The flag called the "Australian Colours," and which exactly resembles the white ensign of Her Majesty's fleet, except .that it bears a blue cross in the place of the red St. George's cross, is constantly used by boats, steam-launches, and small vessels in Australia. 3. On the 13th. October, 1882, I observed that the barque " Woollahra," of Sydney, was flying this flag at the peak while lying alongside Circular Quay,' but before taking the steps required by Art. 87 of the Admiralty instructions, I communicated verbally with His Excellency the Governor on the subject, and the flag in question was hauled down, and the red ensign substituted,