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to all other outgoings except for collection, manage- ment, and surveys, instalments at the rate of not less than £5000 per annum.

4. This arrangement will allow a period of several years to make good the sum withdrawn from British: funds for local purposes, and I trust that by ap- plying, as is intended, the labour of convicts and a large part of the territorial revenue to public im- provements, the resources of the colony may be so increased as to admit of discharging its just obliga- tions in this manner without inconvenience.

I am, &c.

SIR,

Enclosure.

Treasury Chambers, July 23, 1850. WITH reference to the despatches from the Lieutenant-Governor of Van Diemen's Land, and accompanying documents relating to the appropriation of the Land Fund in that colony, which have been forwarded to this Board in your letter of the 28th ultimo, and likewise to the proposed despatch from Earl Grey to the Lieutenant-Governor on that subject, I have it in command to request that you will acquaint Earl Grey that the Lords Commissioners of Her Majesty's Treasury cannot see any ground for acceding to the Lieutenant-Governor's application for the remission of the claims for repayment from the colonial resources, either of the loan of 50,000, which had been most irregularly obtained by the late Lieutenant-Governor from the commissariat chest on the station in the years 1844 and 1845, or of the further amount due from the colony on account of advances made for the service of the Colonial Government to the Agent-General in this country; but that, on the contrary, it seems to my Lords to be indispensable to require this repayment as a check upon a most objectionable proceeding on the part of Governors of colonies in obtaining money from the commissariat chests for local expenses.

I am at the same time to state, that in consideration of the benefit derived by the United Kingdom from the existing arrangements for the reception and reformatory employ- ment of convicts at Van Diemen's Land, my Lords are unwilling to urge the demand for the liquidation of the above-mentioned debts, in such manner as by pressing on the resources of the colony might injuriously impede the prosecution by the Local Govern- ment of public works of general utility, and especially of such works as are calculated to promote the permanent improvement of the colony as well as to afford opportunity for employing the labour of convicts.

I am further to state that my Lords do not in any respect dissent from the general views regarding the disposal and application of the Land Fund signified by Lord Grey in the despatch (No. 116) about to be addressed to the Lieutenant-Governor; and that they are prepared to concur in sanctioning such appropriations from the said fund as shall be in accordance with those views. My Lords, however, must require that instalments at the rate of 5000l. per annum at the least, commencing with the present year inclusively, shall be paid over to the commissariat chest in liquidation of the before-mentioned loan and advances, with preference to any future charges on the fund except expenses of collection and management, and of surveys.

I am further to observe that my Lords' forbearance from requiring a higher rate of annual payment has been on the distinct consideration that the Land Fund is to be applied in the manner before adverted to; and that, in their opinion, it ought not to be used for the purpose of making such loans at interest as that to the Commissioners of the Bridgewater Bridge.

I am also to state that my Lords must request that clear and positive instructions be given to the Lieutenant-Governor on these points, as they cannot but again call Lord Grey's attention to his omission to comply with the former instructions conveyed to him regarding payments of the Land Fund receipts into the Commissariat Chest, more especially as it is shown by his despatch No. 154, that in consequence of that omission, “* a large and increasing sum of money was lying in the bank idle.""

And I am further to request that you will move Lord Grey to cause my Lords to he furnished with a copy of the instructions which his Lordship may now address to Lieu- tenant-Governor Sir W. Denison, on this subject, in order that directions in corres- pondence therewith may be given to the Commissariat officer on the station to attend to the regular liquidation of the debts to Her Majesty's Government.

I am, &c.

(Signed)

C. E. TARVELYAN.

PUBLIC RECORD OFFICE

Reference.—

TTT C.O-885

2 PUBLIC RECORD OFFICE, LONDON

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