A.—4

3

Sub-Enclosure 1. Telegram from the Government of New South Wales to the Agent-General, dated Sydney, 14th July, 1885. Federal Council Bill distasteful to this Colony in present shape. If following amendments be made there is more chance of this colony coming in. I cannot guarantee its joining even then, but it is worth the chance, for without this colony and New Zealand it cannot be a Federal Council of Australasia : In fifth clause, line thirteen, after word " each," insert " or such enlarged number as the Council may from time to time determine." Clause 15, subsection (i), line eight, after word "desirable," insert "by the Legislatures of all the colonies." Clause sixteen, omit in line twenty " relating to those colonies or their relations with one another," and insert " which such Legislatures are empowered to refer under clause fifteen." Clause twenty-nine, line fifteen, after word "interest," insert " which have been referred to it by the Legislatures of all the colonies." Clause thirty-one must be retained. We prefer it to that suggested in Dillon Bell's letter, 2nd June. Eemember our Parliament alone can give its assent; my present object is to make a possible opening for that assent. See Secretary for Colonies at once, represent strongly these views, and that without them Ido not think this colony will join. Explain that to-morrow. Official telegram will reach him to this effect through Governor.

Sub-Enclosure 2. Telegram from the Government of New South Wales to the Agent-General, dated Sydney, 14th July, 1885. Eead my telegram with following alterations : Make proposed insertion in subsection (i) govern the whole clause by substituting for the words " two or more," in second line, the words " all the which." Involves omission from first line of sixteenth clause the words " any two or more." A. Stuart.

Enclosure 3. Governor the Eight Hon. Lord Augustus Loftus, G.C.8., New South Wales, to Colonel the Eight Hon. F. A. Stanley, M.P. (Eeceived 16th July, 1885.) (Telegraphic.) My Government suggests through Agent-General certain alterations in Federal Council Bill, in hope that it may facilitate the concurrence of this colony. Question here can only be decided by Parliament. Bill in present shape will not be adopted by this colony.

No. 2. The Agent-General to the Premier. Sir, — 7, Westminster Chambers, London, S.W., 10th August, 1885. The Federal Council Bill went through Committee in the House of Commons on the 4th instant, the only amendment made being to leave out the last eleven words of the 31st [29th] clause, enabling a retiring colony to repeal Federal laws enacted during the time the colony was in the Federation. I transmit to you herewith a Times report of the debate. Tho Commons' amendment was agreed to by the House of Lords on the 7th instant without debate; and the Bill has therefore passed the Imperial Parliament at last. I have, &c, The Hon. the Premier, Wellington. F. D. Bell.

Enclosure 1. [Extract from tho Times, Wednesday, sth August, 1835.] Federal Council of Australasia Bile. On the motion to go into Committee on this Bill, Sir G. Campbell said that he had grave doubts whether the Australasian Colonies wanted this Bill. He knew that New South Wales and New Zealand had both declared their dislike to the Bill and their intention not to accept it, and it was therefore very doubtful whether it was worth while for Her Majesty's Government to proceed with the measure. Personally, he did not object to the Bill, with one important exception, and he should be glad to see the Australasian Colonies and Her Majesty's Government settle the matter between thein. But he decidedly objected to that clause in the Bill which enabled the Australasian Colonies to deal with what was called the relations cf Australia to the islands of the Pacific. He did not know what was meant by that expression, but he had very grave doubts whether it was prudent to put such a provision in the Bill. Dealing with the question of New Guinea and the disputes which had occurred with regard to the islands of the Pacific, he expressed the opinion that it would be imprudent to give to Australia, so long as it remained under the British flag, tho power to assume protection over the natives of the islands of the Pacific. The alienation between this country and Germany took place with reference to the excessive pretensions of Queensland to deal with one of the Pacific islands. He believed that the Australians would be much better off if they developed their own territories and did all that it was possible for them to do in this direction, without "seeking foreign possessions and endeavouring to entangle themselves in foreign complications.