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since, this has been the invariable request of the New Zealand Ministers. Assurances were, it is understood, given in 1872 that neither Germany nor the United States of America desired to acquire territory in the Pacific. When Sir William Francis Drummond Jervois was Governor —I think in the year 1885—the New Zealand Government had, with the consent of the natives, arranged to take possession, and were then stopped by the Imperial Government. Now, the two larger islands —Savaii and Upolu—have become part of Germany, and Tutuila and the smaller Samoan islands belong to the United States. Great Britain, that civilised and christianized them ; that first traded with them ; that has even now the most trade and the most white population, and that has spent much blood and treasure in the islands, has abandoned them to the foreign Powers. 2. This has been done against the wishes of the natives of the islands, who have since 1872 been wishing for a British protectorate or occupation, and the Colonies of Australasia feel keenly the placing in the Pacific—in the central group of the Pacific—fortified positions of foreign Powers that may in the future be used as bases of attack upon them and their commerce. The colonists believe that there must have been some grave diplomatic reason for such a step, not disclosed in the official documents, and, as the matter has been ended, it is useless to comment on the reasons put forward in the despatch (No. 77). 3. Whether in the end it will be for Germany's benefit as a manufacturing nation, and one now relying on foreign trade and seeking its future development, to do such an unfriendly act to Australia and New Zealand, remains to be seen. The trade of New Zealand alone with Germany is greater than the trade of Savaii and Upolu can ever be, and the time may not be far distant when the actions of Germany—for it is known that the United States of America did not ask for a partition of Samoa, or wish Britain to be excluded from and made a foreigner in the group —may be regarded in such a way as not to benefit the trade relations between Germany and the colonies. 4. This surrender of Samoa will in future be a source of anxiety, and entail expense on Great Britain and the colonies in preparing for and providing against eventualities. However, now that it has been done it is necessary that, immediately it is opportune, steps be taken to put the islands admitted to be British on a satisfactory footing. I therefore venture to suggest for consideration that the boundaries of New Zealand should be extended so as to include the Cook Group, the Fiji, the Friendly, and the Society Islands, or such of them as might be included within the extended boundaries with advantage and without causing complications. These proposals, if entertained, are subject to ratification by the General Assembly of the colony, which would, no doubt, pass the necessary laws to provide for their administration, and at the same time retain the assistance of the Arikis, and maintain, as far as practicable, the present Government, subject to the laws passed and affecting the general administration of the colony, and being subject to the Governor's veto exercised on the advice of his Eesponsible Advisers. Provision could also be made, as in the case of the Maoris, for electing one or more of the natives from each group to the House of Eepresentatives, and for one or more of the high chiefs being appointed to the Legislative Council of New Zealand. The scheme thus roughly outlined would entail no burden on the Imperial Government, whilst the care and civilisation of the natives would be duly attended to. In respect to the Solomon Group, and other British islands lying convenient to the Australian Colonies, perhaps the Federal Government would take charge, and. the necessary powers should be given to allow this being done. Some definite action of a forward character is required in the Pacific at the earliest opportune moment, for the surrender of Samoa has disheartened the natives in the Islands, disappointed the people of Australasia, and lowered the prestige of Great Britain in this part of the globe. Auckland, 16th April, 1900. E. J. Seddon.

No. 12. (No. 29.) Sic, — Government House, Wellington, 2nd May, 1900. I have the honour to enclose you a copy of a memorandum dated the Ist instant from my Premier; at his request I cabled you this day very fully on the subject. 2. I concur entirely with him in his desire to keep the Privy Council as a final Court of Appeal. 3. The objection of cost does not apply to the principal cases such as the Midland Eailway dispute, and there can be no doubt that in that case no lesser tribunal would have been satisfactory. I have, &c, The Eight Hon. J. Chamberlain, EANFUELY. Secretary of State for the Colonies.

Enclosure. Memorandum for His Excellency the Governor. The Premier presents his compliments, and desires His Excellency to inform the Secretary of State that in this colony we look with grave concern on the pressure that is being brought to bear