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the 28th of April, I am aware of their nature, and of the form in which they have been submitted to Her Majesty's Government.

2. It is possible that your Lordship may have already determined the course of action a connexion with them which Her Majesty's Government may have seen fit to adopt. It nevertheless becomes my duty to comment upon them, and to place before Lordship the considerations which occur to me in connexion with them.

your

3. The associated Colonies referred to propose to advance 15,0007. a year for five years, secured on the future revenues of New Guinea, and subject to the condition that Her Majesty's Sovereignty will be proclaimed. In themselves I regard these terms as too hard, and I have so expressed myself to Mr. Griffith in conversation on the subject. I have reason to believe that the Prime Minister of Queensland has no desire to enforce that clause which stipulates that any revenue raised by the future Government of New Guinea should be immediately applied in reduction of the amount advanced by the Colonies. But, as the Agreement stands, it may be enforced, and might seriously cripple the resources of the New Colony after the expiry of the term of five years.

The offer is also made on the assumption that Her Majesty's Government would advance at least a similar amount for which no equivalent security is provided.

4. As regards the provision to be made for a Civil List, and having in view the very serious responsibilities which will attach to the future Administration of British New Guinea, if Sovereignty is to be proclaimed, it seems to me to be insufficient.

Without questioning the probability that men of some standing and ability could be obtained at the salaries specified, it may well be doubted, I think, if the best men for the purpose could be secured on the specified scale, and very much will depend on the character and standing of the first Administrators.

For the purpose of securing an efficient service, I do not think that a less amount than 5,0007. a year should be set apart for a Civil List. The officers at first entrusted with administrative duties in British New Guinea will have far greater and more extensive responsibilities devolved upon them than those which attached to the first Administrators in Fiji. The climate is an unhealthy one, and though this may be combated by prudence, I doubt very much if men of tried experience will be found to undertake such duties unless they are adequately paid. This, however, is not a matter, I should assume, on which there is likely to be any difference of opinion which may not be arranged.

5. Those clauses of the proposed agreement which refer to the deportation of natives, to the purchase of land, to the trading with natives in arms and intoxicants, and to the prohibition of differential duties, will, I am sure, be approved by Her Majesty's Government, and are very vital conditions of the agreement.

6. The remaining clauses having reference to appeals to the Supreme Court of Queens- land, to the framing of estimates, to the auditing of accounts, and to the relations which it is proposed should subsist between the Administrators of Queensland and New Guinea, seem to me to be justified by the circumstances of the case, and will be found advantageous during the early stages of occupation.

They will be modified, no doubt, in course of time, and in accordance with experience, but I can scarcely anticipate that at the end of the five years over which it is proposed that the agreement should hold good, the Australian Colonies will accept any financial responsibilities in connexion with British New Guinea dependent upon grants in aid to be voted by Parliament.

I express an opinion on this matter which may be premature, but according to the estimate I have been enabled to form from existing circumstances, I do not think that the associated Legislatures of the Australian Colonies will, for any lengthened period, be found willing to accept either financial or administrative responsibilities in connexion with British New Guinea. It is possible that the Parliament of Queensland, or the future Parliament of Northern Queensland, if constituted, might be found willing to do so, but I cannot advise Her Majesty's Government to depend upon sustained contribu- tions even from these quarters. Nor do I think that it is, in itself, desirable that the future Government of British New Guinea should be permanently subordinated to the Government of any one of the Australian Colonies.

7. It remains for me to say something in reference to the contribution towards the Government of British New Guinea which it is anticipated that Her Majesty's Govern- ment will make.

The sum mentioned by Mr. Griffith, namely 100,000, in addition to the amount to be advanced by the Colonies, would, no doubt, suffice for the purpose of initiating a government, and of opening a settlement at several points on the coast during the first five

but I cannot advise your Lordship that this amount either could or should be immediately repaid out of revenue, though it might with perfect propriety become a

years;

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permanent charge on the future resources of New Guinea. The amount of 100,0007. was named, I suppose, because in December last, during Colonel Stanley's administration of the Colonial Office, some proposition of the kind had been made, and it was inferred that Her Majesty's Government would be willing to advance this amount on a footing similar to that which had been recognised in the case of Fiji.

8. I am leaving this for Cooktown on the 22nd to proceed to Port Moresby, and probably also to South Cape. I propose to return to Cooktown from New Guinea towards the end of July. I assume that it is scarcely probable that under any circum- stances British Sovereignty will be proclaimed before the commencement of next year, after the matter has been discussed in the Parliament of Queensland.

Should your Lordship, therefore, desire to see me after my return from New Guinea in July, I shall be available for your summons by telegram at Cooktown, and could be in England early in September.

I have, &c.

(Signed) JOHN DOUGLAS, Sepecial Commissioner for British New Guinea.

The Right Hon. Earl Granville, K.G.,

&c.

&c.

&c.

17.

ADMINISTRATOR SIR A. H. PALMER, K.C.M.G. (Queensland), to the RIGHT HON. THE EARL GRANVILLE, K.G. (Received July 5, 1886.)

Government House, Brisbane, Queensland, MY LORD,

May 21, 1886. I HAVE the honour to forward to your Lordship, at the request of my Chief Secretary, the enclosed copy of a letter, dated 20th instant, covering draft proposals for the further administration of British New Guinea agreed to by the Governments of the Colonies of New South Wales, Queensland, and Victoria, at Sydney, on the 28th of April 1886.

The Right Hon. the Secretary of State

for the Colonies.

SIR,

Enclosure in 17.

I have, &c.

(Signed) A. H. PALMER.

Colonial Secretary's Office, Brisbane, May 20, 1886.

1. YOUR Excellency is aware that the question of the future administration or British New Guinea has for some time engaged the attention of Her Majesty's Imperial Government, as well as the Governments of the Australasian Colonies. On the 30th of March, after much consideration on the part of this Government, I addressed a letter to the Governments of the other Australasian Colonies, of which I enclose a copy for your Excellency's information.*

2. The Government of South Australia replied on the 5th of April, declining to be a party to any further agreement for contributing to the cost of the Government of New Guinea. I have not yet received any formal reply from any of the other Governments.

3. Being in sydney on the 27th and 28th of April for the special purpose of discussing with Admiral Tryon and the leaders of the Governments of New South Wales and Victoria the proposals of the Admiralty upon the question of the Naval Defences of Australasia, I took the opportunity of discussing with Sir P. A. Jennings and Mr. Gillies the proposals contained in my Memorandum of the 30th March; and I am glad to be able to inform your Excellency that, after full consideration, these proposals were accepted with some modifications. The agreement arrived at between us as representing the three Colonies of New South Wales, Victoria, and Queensland, is embodied in the following Memorandum

* See Enclosure in 14, page 226.

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