Major-General R. G. Broadwood was the only absentee; the Members decided, by a majority of five to two, that Mr. Guterres should be suspended and recommended to Your Lordship for dismissal from the Public Service. I concur in the opinion of the majority and beg therefore to ask for Your Lordship's approval and confirmation of that decision and that Your Lordship will be good enough to notify the result by telegram.

Enclosure 3.

# letter, in original be returned I

5. I also enclose for Your Lordship's information original letters written to Mr. Guterres by Masters in the Mercantile Marine after the charges had been brought against him. These letters and much of the evidence of Masters called by Mr. Guterres only go to show that they have not noticed any irregularities in that officer's dealings, but otherwise are of no evidentiary value on the question whether or not, as a fact, he has been guilty of the irregularities imputed to him.

6. I would call Your Lordship's attention to the long service which has been rendered by Mr. Guterres, who was first employed in the Harbour Department in 1869; but, in the same connection, it is my duty to refer to the concluding paragraph of Mr. Chamberlain's Despatch No. 213 of the 29th of October, 1897, concerning

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