B.—No. 5

PEOVINCE OF AUCKLAND. No. 1. THB HONOBABLE THE COLONIAL SECBETABY TO THE STJPEBINTENDENT, AUCKLAND. Colonial Secretary's Office, Auckland, 27th February, 1863. Sir,— In the " Southern Cross " of to-day, I observe that the Provincial Secretary of Auckland, in the report of the debate in the Provincial Council on the " Loan Bill," sent down to the Council by your Honor, is reported to have made the following statement:— " Now, as the assent of the General Government was most necessary, he would state what had happened. The Provincial Government having made up their minds, laid a paper similar to that placed in the hands of the Honorable Members before the General Government. A meeting of the Executive was called, and the facts were discussed. The Members of the General Government then said, after full enquiry ' We will be happy if this Bill be passed, to recommend His Excellency to assent to it,' and without having had that assurance first, the Bill would not have been sent down to take up the time of the Council needlessly, in discussing a measure which might not be assented to when passed." This statement being inaccurate, I think it desirable, in order that the Council or your Honor's Government may not be misled, to remind you of what has really taken place on the subject between your Honor and myself. In the first place, I should state distinctly, that not only has no Executive Council been held to consider the question of the Governor's assent to the Bill, but not even a Cabinet Council of the Ministers. The necessary formal consideration of such a Bill could not take place, for the Bill has not yet been seen (so far as I am aware) by any Member of His Excellency's Government. But at one or two interviews between your Honor and myself personally, I have stated in the course of conversation that I should be happy to assist your Honor's Government in any way I could, in getting a Bill made law for raising a Loan to carry on the purchase of Native Lands in the Province of Auckland, and especially for introducing bodies of Immigrants and establishing Settlements on the Frontiers, provided always that your Honor could show satisfactorily that sufficient guarantees existed for the payment of the interest of the Loan. A similar intimation was also made to your Honor (in a private form) by another Member of the Government; and, indeed, by the assent which has been given to two similar measures in the Middle Island, the Government have sufficiently indicated their desire to assist the Provincial Legislatures, where ample security was offered to the public creditor in any contemplated Loan for public purposes. I have, &c, Alfred Domett. His Honor the Superintendent, Auckland.

No. 2. THE SUPEBINTENDENT, AUCKLAND, TO THE HONOBABLE THB COLONIAL SECBETABY. Superintendent's Office, Auckland, 18th March, 1863. Sir,— I have the honor to transmit herewith, for the purpose of being laid before the Governor, the Act noted in the margin, which has been passed by the Provincial Council, and which I have reserved for the signification of His Excellency's assent.

CORRESPONDENCE RELATING to PROVINCIAL LOANS.