A.—l.

(New Zealand, No. 105.) My Lord, — Government House, Wellington, 9th October, 1888. .r. I have the honour to acknowledge the receipt of your circular despatch of the 17th July last, asking as to the prospect of opening up a market for Scotch-cured fish in this colony, and in reply to enclose a copy of a memorandum which I have received from the Premier on the subject. I agree with Sir Harry Atkinson that New Zealand, though her fishing industries are yet undeveloped, is more likely to enter into competition with Scotland than furnish a market for Scottish-cured fish. I have, &c, W. F. DRUMMOND JERVOIS. The Right Hon. Lord Knutsford, &c.

Enclosure. Memorandum for His Excellency, The Premier respectfully submits that, with our own magnificent deep-sea fisheries and the fact that we have spent large sums in the introduction of non-indigenous fish, it is not the policy of the New Zealand Government to encourage the introduction of Homo-cured fish, but in every way possible to encourage the fish-curing industry in the colony. The quantity of cured fish imported from the United Kingdom during the year 1887 was only 1,776cwt., valued at £2,850, and the Premier anticipates that ere long the colony will be in a position to export this article of food. Premier's Office, Wellington, 4th October, 1888. H. A. Atkinson, Premier.

The German-Australian Steamship Company. (Circular.) Sir, — Downing Street, sth September, 1888. I have the honour to transmit to you, for the information of your Government, a copy of a despatch which has been received at the Eoreign Office from Her Majesty's Consul-General at Hamburg, reporting that a new line of steamships would shortly be established to run between that port and Australia, under the title of "The German-Australian Steamship Company." I have, &c, KNUTSFORD. The Officer Administering the Government of New Zealand.

Enclosure. (No. 26—Commercial.) My Lord, — Her Majesty's Consulate-General, Hamburg, 18th August, 1888. I have the honour to report to your Lordship that the ocean lines of steamships belonging to Hamburg are shortly to be increased by the establishment of a new line, to run between Hamburg and Australia, under the title of "The German-Australian Steamship Company." The capital of the new company is fixed at £200,000. It is expected by this undertaking that the trade with Australia, which amounted in 1887, exports and imports together, to 53,940 tons, will be further developed by thus bringing the two countries into more direct relations with each other, and that the shipments now forwarded by way of Bremen, to be carried by the North German Lloyd, will go direct from Hamburg. The traffic is to be carried on by two large steamers, which it is stated are to be built for the purpose; but I have not learnt whether any orders for their construction have been placed yet. I think it probable, however, that purchases of new vessels to commence with may be made. By this new line another advantage to German trade has been considered, for German goods now finding their way to Australia through England encounter the operation of the Merchandise Marks Act which undoubtedly has told adversely, will by direct importation avoid the working of the Act—.at least until such time as the colonies have adopted it. I have, &c, The Right Hon. the Marquis of Salisbury, K.G., &c. Charles S. Dundas.

SUGAR BOUNTIES CONVENTION. Telegram from the Secretary of State. Received 22nd March, 1888. Find misconception exists as to my despatch sugar bounties, 31st December. Wished to convey that your Government should acquiesce in view expressed in draft convention signed 19th December by all Power's represented, that in the event of bounties on sugar existing in your colony as drawback or otherwise, such bounty should be abolished. This need not entail, as may have been erro-

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