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No. 46. •^New Zealand, No. 7.) My Lobi), — Downing Street, 7th February, 1890. I have the honour to transmit to you, for the information of your Government, a copy of a letter from the Admiralty, stating the rules that have been laid down by the Lords Commissioners of the Treasury with respect to petty officers and men serving under Colonial Governments. I have, &c, KNUTSFORD. Governor the Right Hon. the Earl of Onslow, G.C.M.G., &c.

Enclosure. The Admiralty to the Colonial Office. Sic, — Admiralty, 21st January, 1890. With reference to your letter of the 13th June last, and to previous correspondence relative to the appointment of Harry Miles, captain of the forecastle, as Torpedo Instructor for the Defence Force of Queensland, I am commanded by my Lords Commissioners of the Admiralty to acquaint you, for the information of the Secretary of State for the Colonies, that, in view of the possibility of Miles's engagement with the Queensland Government, which is for three years, being extended, my Lords will be glad if the Queensland Government and Miles are informed that the Lords Commissioners of Her Majesty's Treasury have laid down the following rules with respect to petty officers and men serving under Colonial Governments : (a) A petty officer who has served not less than twelve years of pensionable service in the Eoyal navy may, if allowed to enter the service of a Colonial Government, count his time under that Government as qualifying service up to the date on which he completes the full period requisite to entitle him to pension ; (b) but if the petty officer— as in the case of H. Miles—enters the service before completing twelve years' pensionable service in the Eoyal navy, he cannot count his time under that Government as qualifying service unless he returns to the Eoyal navy for at least three years before completing the full period requisite to entitle him to pension, (o) In either case the petty officer draws no pay from the Imperial Government whilst he remains in the service of the Colonial Government. I am, &c, The Under-Secretary of State, Colonial Office. Evan Macgregor.

No. 47. (New Zealand, No. 8.) My Lord,— Downing Street, Bth February, 1890. With reference to previous correspondence respecting the establishment of a protectorate over the islands of the Hervey Group, I desire to place before you the views of Her Majesty's Government with regard to certain matters connected with the future of these islands. I understand from your telegram of the 4th November that your Ministers expect shortly to obtain a vote of the House of Representatives for the salary of the Resident, and the other expenses necessary for carrying out the objects of the protectorate. That officer will communicate direct with you as Governor of New Zealand, and you will in the ordinary course lay all communications from him before your Ministers for their advice. You will also keep me fully informed on all matters of importance in connection with the protectorate, and refer to me any question upon which you consider that Her Majesty's Government should be consulted before action is taken, and any points with regard to which you may be unable to accept the advice of your Ministers. In the conduct of the affairs of the islands the first object to be kept in view is, of course, the welfare of the native inhabitants, and it is important that the same line of policy should be pursued as has been followed in the case of the other native dependencies and possessions of Her Majesty in the Pacific. The main points of that policy were accepted by the Intercolonial Conference on the subject of British New Guinea held at Sydney in April, 1886, and were embodied in the draft proposals prepared at that Conference for the future administration of that possession—namely, (a) that no purchase of land should be allowed to be made except by or from the Government, or from purchasers from the Government; (b) that no deportation of natives should be allowed either from one part of the protectorate to another, or to places beyond the protectorate, except under ordinances reserved for Her Majesty's assent and assented to by Her Majesty ; (c) that all trading with natives in arms, ammunition, explosives, and intoxicants should be prohibited except under ordinances