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A.—l

recognises that the Consul and consular agents of France have the right, as established by the before-mentioned declaration, to direct operations relative to the salvage of French ships wrecked in New Zealand. A reply to (his effect lias already been given by His Excellency the Governor to the French Consul at Auckland, who communicated with him on the subject in January last. As regards (he other sections of the Act referred to by the Ambassador, I may make the following remarks: — Section J/. The onlj way in which this affects foreign ships is to require them, when plying in the New Zealand coastal trade, to have masters and otticers who hold British certificates, which is a reasonable provision. Section 152 of " The Shipping and Seamen's Act, 1877," provided that foreign ships carrying passengers between places in the colony should be subject to the same provisions of that Act with respect lo masters and officers as British ships, and therefore the requirements of section 21 of the Act of 1903 is only an extension to vessels not carrying passengers of a provision which has been in force for many years. Section ISo. — This provides that foreign certificates of ships may be recognised in the colony, and is similar to section 200 of " The Shipping and Seamen's Act, 1877." It is really in favour of foreign ships. Section 213. —This provides that when the Minister certifies that the laws of a foreign State eegar ling overloading Ac, are equally effective with the provisions- of the Act, vessels of that State need not be detained for non-compliance with the Act. The section is similar to section 30 of " The Shipping and Seamen's Act Amendment Act, 1894," and section 445 of " The Imperial Merchant Shipping Act, 1891." It is in favour of foreign ships, and it is submitted that it is a reasonable provision. Section 229. —This refers to the detention of foreign ships for overloading, Ac, and is similar to section 162 of "The Shipping and Seamen's Act, 1877," and section 462 of "The Imperial Merchant Shipping Act, 1894," and, in (he opinion of the Department, it does not contain anything unreasonable. Section 245. —This section provides that when an investigation into a shipping casualty, Ac, has been held in any other part of the British dominions, the matter shall not be the subject of an inquiry in New Zealand. As such inquiries can only be held in the case of British ships, foreign ships are not affected by it, and, therefore, the French Government must be under a misapprehension regarding its effect. Section 246. —As regards foreign ships, this is only complementary to section 229, which is dealt with above. Section 253. —This is the section regarding receivers of wreck taking charge in cases of shipwreck, and refers to the matter dealt with in the first paragraph of this memorandum.—lt is similar to section 250 of " The Shipping and Seamen's Act, 1877," and section 511 of " The Imperial Merchant Shipping Act, 1894." On the subject generally, the attention of the Ambassador might be directed to subsection (2) of section 2 of the Act, which expressly provides that the provisions of the Act shall be so construed as not to exceed the legislative powers conferred on the General Assembly by the Constitution Act. sth June, 1905. Wii. Hall-Jones.

No. 3. (No. 33.) Sir, — Government House, Wellington, 20th June, 1905. I have the honour to forward herewith a copy of a minute I have received from my Premier, relating to the establishment of a money-order system between Tonga and New Zealand. I also enclose a copy of the letter from the Premier of Tonga to Mr. Seddon, to which the latter refers in his minute. 2. I am sending a copy of this correspondence to the High Commissioner of the Western Pacific. I have, &c, The Secretary of State for the Colonies. PLUNKET. Enclosures. Prime Minister's Office, Wellington, 17th June, 1905. Memorandum for His Excellency the Governor. The Premier presents his compliments, and l>egs to inform His Excellency that he has received the inclosed communication from the Premier of Tonga in answer to Mr. Seddon's letter of the 29th April last, with reference to the establishment of a money-order system between Tonga and New Zealand. From the circumstances disclosed in the letter received, the Premier lesires respectfully that His Excellency will communicate with the High Commissioner of the Western Pacific, and inform him that the New Zealand Government is prepared to establish a money-order system as between New Zealand ami Tonga. This would be a great convenience to people trading between Ihe two countries, as well as to the Government and residents of Tonga. R. J. Seddon.

Enclosures. Prime Minister's Office, Wellington, 17th June, 1905. Memorandum for His Excellency the Governor. The Premier presents his compliments, and begs to inform His Excellency that he has received the inclosed communication from the Premier of Tonga in answer to Mr. Seddon's letter of the 29th April last, with reference to the establishment of a money-order system between Tonga and New Zealand. From the circumstances disclosed in the letter received, the Premier lesires respectfully that His Excellency will communicate with the High Commissioner of the Western Pacific, and inform him that the New Zealand Government is prepared to establish a money-order system as between New Zealand and Tonga. This would be a great convenience to people trading lietwoen the two countries, us well as to the Government and residents of Tonga. R. J. Seddon.