A.—l.

acting on the advice of her lawyer, immediately on demand handed over the eleven hundred-pound notes to the police at Auckland, by whom they have been placed for safety in the strong box of the Bank of New Zealand at that place. 2. On receipt of your Lordship's telegram of the 24th instant, I gave instructions to the police authorities at Auckland that the notes should be cut in halves, and one half forwarded in a registered letter to your Lordship by this mail, and the other by the next direct steamer. 3. I understand that the police have been put to no expense in the matter. I have, &c, Wm. F. DEUMMOND JEEVOIS. The Right Hon. the Earl of Derby.

No. 43. (No. 61.) My Lord, — Government House, Wellington, 25th April, 1885. With reference to your Lordship's Despatch No. 7, of the 2nd February last, concerning the claim made by John Bahilly to land or an equivalent in money, for alleged services in New Zealand in 1849,1 have the honour to transmit herewith a copy of a memorandum from the Minister of Lands, Mr. Ballance, forwarding a memorandum from the Under-Secretary, from which your Lordship will perceive that there is no foundation for the claim made. I have, &c, Wm. F. DRUMMOND JEEVOIS. The Eight Hon. the Earl of Derby.

A.-2, No. 37,

Enclosure. Memoeandum for His Excellency. The Minister of Lands presents his respectful compliments to the Governor, and forwards to His Excellency, for transmission to the Secretary of State for the Colonies, a memorandum by the Under-Secretary, Lands Department, respecting the claim by Mr. John Bahilly for a grant of land, as set forth in his letter to the War Office, a copy of which is enclosed in Lord Derby's Despatch No. 7, 2nd February. Wellington, 25th April, 1885. J- Ballance.

Sub-Enclosure. The Hon. the Minister of Lands. The only Act of which I am aware authorizing grants of land in the Province of Auckland to military settlers was " The Auckland Waste Lands Act, 1858," which provided that every naval or military officer, whether on full or half pay, and every non-commissioned officer and private, marine or seaman, who retired or obtained his discharge, should be allowed to select land free of cost, according to his rank, from 60 acres to 400 acres ; provided that before any such officer, noncommissioned officer, private, marine, or seaman, obtained his land, it should be proved to the satisfaction of the Commissioner of Crown Lands that he retired or obtained his discharge for the purpose of settling in the Province of Auckland. The provisions of the Act were subsequently extended to the remaining provinces of the North Island on the same terms. " The Auckland Waste Lands Act, 1858," was repealed as regards the Auckland Province as from the Ist March, 1867, as regards Wellington and Hawke's Bay in 1863, and as regards the Taranaki Brovince in 1865. As private Bahilly, late of the 58th Begiment, did not retire for the purpose of settling in the Province of Auckland (or any other of the North Island Provinces) within the time the Acts authorizing grants of land to naval and military settlers were in force, his claim cannot be recognized. H. J. H. Eliott, Under-Secretary.

No. 44. (No. 62.) My Lord, — Government House, Wellington, 25th April, 1885. As your Lordship will have gathered from the several telegrams I have addressed to you, my Government feel aggrieved that New Zealand should be left, as at present, without direct protection from the Australian Naval Squadron.

See also No. 44 infra.

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