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them, and are using them. It has been found by experience, however, with regard to titles to land, that there is often great jealousy of the Committees, and that the Natives prefer to have the land adjudicated on by the Land Courts. (This remark applies also to Resolution 6.) If any other form of Maori Council than that which now exists is desired under the clause of the Constitution Act referred to, it can only be obtained by Act of the Parliament of New Zealand. No observations are necessary to Resolutions 3, 4, 5, 8, and 9. 7. This resolution apparently refers to Lord Derby's despatch of the 23rd June, 1885, but does not convey a correct impression of the terms of that document. No directions are contained in the despatch. Lord Derby expressly says that " under the present Constitution of New Zealand the Government of all Her Majesty's subjects in the Islands is controlled by Ministers responsible to the General Assembly, in which the Natives are efficiently represented by persons of their own race, and that it is no longer possible to advise the Queen to interfere actively in the administration of Native affairs, any more than in connection with other questions of internal government." The resolution states that there is an "instruction" contained in the despatch, but there is none. On the contrary, Lord Derby expressly recognizes the right of the New Zealand Government to deal with the internal affairs of the colony without interference. The words of Lord Derby where he refers to the Native people are as follow: "It [the Imperial Government] should use its good offices with the Colonial Government with the view of obtaining for the Natives all the consideration which can be given to them." The particular request that Lord Derby makes, and it is only in the nature of a request, is "that the Government of New Zealand will not fail to protect and to promote the welfare of the Natives by a just administration of the law, and by a generous consideration of all their reasonable representations." He adds, "I cannot doubt that means will be found of mr intaining to a sufficient extent the rights and institutions of the Maoris without injury to those other great interests which have grown up in the land, and of securing to them a fair share of that prosperity which has of necessity affected in many ways the condition of their existence." The policy advocated by Lord Derby has been and is being carried out. A proof of this is to be found in the fact that an overwhelming majority of the Natives are satisfied with the administration of their affairs by the Government of New Zealand. Signed, by order of His Excellency the Governor, John Jeevois, Government House, Auckland, 14th April, 1886. Private Secretary.

No. 5. (No. 3].) My Loed,' —■ Government House, Wellington, 17th May, 1886. With reference to the despatch, No. 78, dated the 27th December last, of your Lordship's predecessor, transmitting an extract from a memorandum of Count Hatzfeldt containing allegations in respect of the action of English traders in the service of the Auckland firm of Messrs. Henderson and Macfarlane in supplying arms and ammunition to natives of the Marshall Group, and requesting me to move my Government to cause inquiries to be made on the subject, and to inform you of the result, I have the honour to forward herewith a memorandum from my Ministers, together with a report from the police authorities at Auckland, on the subject. Your Lordship may rest assured that no effort will be wanting on the part of the Government of this colony to prevent any illegal trade being carried on in arms and ammunition. I have, &c, W T. E. DEUMMOND JEEVOIS. The Eight Hon. the Earl Granville, KG.

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Enclosure. Memobandum for His Excellency. The Premier has the honour to return Despatch No. 78, of the 27th December last, from the Secretary of State for the Colonies, on the subject of the reported sale of arms, &c, by the employes of an Auckland firm, Messrs. Henderson and Macfarlane, to natives of the Marshall Group, Western Pacific, together with a report from the police authorities, from which it would appear that every exertion is made by the Customs to prevent the exportation of arms and ammunition, and that only upon one occasion were any munitions found in the vessel of the firm mentioned, and that they were then thrown overboard. 28th April, 1886. Eobbet Stout.

, Sub-enclosure. Detective Office, Auckland, 12th April, 188C. Re alleged sales of arms and ammunition-by Henderson, Macfarlane, and Co., of Auckland, to the natives of the Marshall Group in the West Pacific. Detective Walker respectfully reports that he has made exhaustive inquiries about this matter, and is convinced that no trade in arms and ammunition has been carried on in the last two years