A.—3

14

It has had a most undesirable effect upon the natives in the far districts: so much so, as to materially increase the chances of an outbreak, as the opposition party are now saying that Malietoa has been attempting to sell the country. They know very well to the contrary, but will not pass this opportunity for raising ill-feeling against him. In a part of Savaii, instigated by a. German in the employ of the big firm, who volunteered to lead a force, if required, the Stu-tane division decided to confederate with the rest of the opposition, and to resist any attempt at annexation, by arms. . . . . Missionary in that district is my informant. Ido not, however, consider this individual movement to be of any great importance, beyond creating additional excitement in a district already professedly prepared for war, and needing but small excuse to declare it. In fact, the whole opposition party but very thinly disguise their intention of breaking out, should they not carry their wishes out at the next I'ono, which is shortly to come off. Lundon was in that district a short time ago, and probably by his mischievous talk has contributed largely to this state of affairs. What Lundon has represented to New Zealand, beyond the usual clap-trap of anarchy, Consular arrogance, and missionary greed, we are ignorant; but one thing is quite certain, that Lundon's experience of Samoans is not of that value as to guarantee his authority for giving anything but a very shallow local opinion concerning them. Since he has ceased troubling Malietoa, he has been a great deal with the vice-king Tamasese, and Masua, the chief of the opposition and the principal speaker. I believe that by fooling- Lundon to the top of his bent, they are but using him as means for getting up additional feeling against Malietoa, by appearing to sanction this annexation scheme to which their party is proclaimed to be opposed. It is hard to understand how it is that the vice-king's party in Savaii and other parts are threatening armed resistance to New Zealand annexation, while the chiefs are ostensibly hand-and-glove with the promoter of the scheme, who, if the report be correct, wishes to take them to New Zealand to assist in his purpose. I should not, however, be at all surprised that, were Tamasese and Masua brought to think that personal benefit were to be derived by taking such a course, they would take it.

Enclosure 2. Sir Wm. Jeevois to the High Commissioneb of the Westben Pacific. Sib, — Government House, Wellington, November 13, 1883. I have the honour to acknowledge the receipt of your Excellency's letter of the 26th October last, enclosing an extract from a letter from Samoa, relating to proceedings in that group of islands, of certain persons from New Zealand. 2. I need scarcely state that neither I nor my Government have any knowledge of such proceedings, or would have in any way countenanced them. The Confederation and Annexation Bill has not become law, and if it had it would not authorize the course now being taken by Mr. Lundon. 3. I transmit herewith a copy of a memorandum on the subject, from my Prime Minister. I have, &c. His Excellency the High Commissioner. Wm. F. Deummond Jeevois,

Sub-Enclosure. Memobandum for His Excellency. The Premier has the honour to return to His Excellency the despatch of 26th October, from His Excellency Sir W. Des Vceux, enclosing extracts from a letter written in Samoa, respecting proceedings by persons said to be from New Zealand, with the object of securing the annexation of that group of islands to this colony. 2. The Premier desires to say that any such proceedings as those described are being taken, not only without being countenanced by the Government of this Colony, but without their knowledge, and in the absence of anything that, as the Government believe, can be reasonably regarded as even implied authority. 3. The Confederation and Annexation Bill passed by the Assembly last session, was reserved for the signification of Her Majesty's pleasure, and is, therefore, not yet in force. Even if it were, the Government of New Zealand could not take action of any kind except upon the approval of Parliament, after there has been submitted to it a formal expression of the wish of the Government or constituted authorities of any island or islands it may be desired should be annexed to New Zealand. 4. The Premier need hardly add the assurance, that this Government will not be a party to any action under the Confederation and Annexation Bill, which is not strictly in accordance with the provisions of that measure ; and that no countenance will be given to such action until, by the assent of Her Majesty, the measure shall have become law. H. A. Atkinson. Wellington, November 12, 1883.

Enclosure 3. [Extracts from the New Zealand Herald and Daily Southern Cross. Monday, September 17, 1883. -New Zealand and Pacific Islands. Some time since, Mr. John Lundon, formerly M.H.B. for the Bay of Islands District, went down to Samoa (Navigator "Islands) on some private business. By the last mail from Samoa, letters were received from him, in which he stated that a great deal of discontent prevailed there amongst