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[Extract from tho Times, Monday, 13th December, 1886.] Austealia and New Guinea. The following is the text of the telegram from the Colonial Office respecting New Guinea communicated to some of the Australian Colonies on the 3rd instant: " 3rd December.—Your telegram 27th November received. Her Majesty's Government have very carefully considered New Guinea correspondence, and desire to state frankly their opinions on colonial proposals. Establishment of sovereignty over British New Guinea involves possibility of very heavy expenditure, with prospect of small revenue, and is not necessary for defence of Australia from foreign aggression. That object adequately secured by protectorate. Sovereignty might be proclaimed at certain limited spots, as at Gold Coast, but £15,000 a year insufficient for even that arrangement. Gold Coast and Lagos expenditure £150,000 a year, and New Guinea might cost more. Annexation and settlement of New Guinea no advantage to this country, and we doubt advantage to Australian Colonies commensurate with cost to them. If, however, annexation and settlement still desired, principles of proposed financial arrangements would have to be reconsidered. Present proposals contemplate small colonial contribution for five years, this country being responsible for all further and future charges. We could not proceed except on converse principle—namely, this country giving small initial contribution, as offered last year, and colonies securing sufficient annual sum by permanent Act not limited to five years. Many points in Griffith's proposals good, but we cannot consider details until financial difficulty removed. Eepeat to Victoria and New South Wales."

No. 19. The Special Commissionee, British New Guinea, to Sir W. F. D. Jjbkvois, G.C.M.G., C.B. Sir, — Cooktown, 15th December, 1886. Referring to previous correspondence relating to the protectorate of British New Guinea, and in accordance with the proportionate adjustment of payments hitherto adopted, I have the honour to request that the quota of contribution duo by your Government for the year ending June, 1887—namely, £2,668 18s. 9d. —may be paid into the Queensland National Bank to the credit of Her Majesty's Special Commissioner for the protected territory of British New Guinea. I hope shortly to be able to furnish your Excellency with a report containing a full statement of account, together with such information as I have been able to obtain regarding the present condition and future prospects of the protectorate. I leave this on the 17th for the south, and my address for a few weeks will be to the care of His Excellency the Administrator of the Government at Brisbane. I have, &c, His Excellency the Governor of New Zealand, etc. John Douglas.

No. 20. Ministeks to the Governor. Memorandum for His Excellency. The Premier has the honour to return to His Excellency the letters from the Special Commissioner for British New Guinea, dated the 20th October and 15th December last, relative to the New Zealand contribution towards the administration of affairs. Ministers must respectfully decline to reconsider the question as to the period for which the last payment was made, as suggested by Mr. Douglas, even although, as pointed out, they expressed their willingness to substitute an earlier date " if necessary," because, from his own showing, Mr. Douglas cannot say that it is absolutely necessary. Moreover, Ministers are bound by Parliament, which has sanctioned the payment in question as for the year ending the 30th June, 1887, and they do not consider circumstances have arisen which would warrant their asking Parliament to alter the terms of the memorandum to His Excellency of the 7th July, 1885. Eeferring to the last paragraph of Mr. Douglas's letter of the 20th October, Ministers think it unnecessary to enter into any further discussion as to the action of Her Majesty's Government in connection with New Guinea. The Premier has further the honour to submit that the only reply necessary to the Special Commissioner's letter of the 15th December is to the effect that the New Zealand quota of the contribution to the protectorate for the period mentioned has already been paid. Dunedin, 21st January, 1887. Eobebt Stout. [A%y\yroximate Cost of Paper. —Preparation, nil; printing (1,400 copies), £ 9 2s. 6d.]

Nos. 17 and 19.

A.-4C, 1885, No. 129. No. 17.

No. 19

Authority: Geobge Didsbuby, Government Printer, Wellington.—lBB7.