A.—No.. 1

Enclosure in No. 8. Eael Longfoed to Under Seceetaet of State foe the Colonies. Sib,— War Office, 16th August, 1866. I am directed by the Secretary of State for War to transmit to you to be laid before the Earl of Carnarvon, copy of a letter dated 4th September last, from the Commissariat Officer in charge in New Zealand, on the subject of a prohibition imposed by the local authorities in Taranaki, on the importation of Australian cattle into that district, and to state that claims have been received from the contractor to the extent of £4028, of which £2478 have been allowed as compensation, and I am to request to be favoured with His Lordship's opinion whether, under the circumstances stated in Commissary-General Jones' letter, the Colonial Government of New Zealand could with propriety be called upon to reimburse the Imperial Government the amount which has been allowed to the contractor for losses sustained by the act of the local authorities at Taranaki. I have, &c, The Under Secretary of State, Colonial Office. Longfoed.

Sub-Enclosure to Enclosure in No. 8. Coimissaet-Geneeal Jones to Under Secretary of State foe Wae. Sie, — Commissariat, New Zealand, Auckland, 4th September, 18G5. I do myself the honor to hand you herewith a claim made by the contractor for fresh meat in this Colony for compensation for losses sustained by him in carrying out his contract, the particulars of which were reported in my letter No. 1607, of 15th March last. The facts of this case are as follows, viz.: —■ 1. The contract was entered into on both sides as one specially contemplating importation from the Australian Colonies, the supply of cattle and sheep in the Colony being inadequate to the demand. 2. Mr. Johnson objected to enter into the contract except upon the stipulation that he was to be permitted to import from Australia. It was only upon considerable pressure that he ultimately consented to complete his contract upon the insertion of a clause that the Senior Commissariat Officer should use his utmost exertions to keep open the ports and enable him to import as contemplated. 3. When the tenders were invited and opened there was no prohibition against importation, nor was any information given of an intention to impose restrictions, although my advertisement for tenders was published in October, 1864. A printed form of the general conditions is enclosed herewith, showing in Clause 5, that importations were promised "as free from Colonial duties." On the sth January, 1865, the acceptance of the contract was given, and on the 11th, 12th, and 16th of the same month Proclamations were published at Taranaki, prohibiting importations from all places from which a supply of cattle could be obtained; according to the postal arrangements the first Proclamation was issued two clays after the information of the contract having been entered into must have reached Taranaki. 4. A show of concession was made when the first cargo arrived from Australia, by permitting the landing to be made at a particular spot, but the nature of the spot indicated precluded the possibility of landing without tho almost certainty of losing a very large proportion of the animals, and a second Proclamation prevented the driving of such cattle from the spot fixed for lauding, and the troops being dispersed in every direction the cattle would have been of no use had they been landed. 5. Prom a paragraph in the enclosed local paper it will be seen that Mr. Brown, the Superintendent of the Taranaki Province, congratulates the people upon the good the prohibition has effected in keeping up the price of cattle in the Province, stating that were the prohibition relaxed the prices would fall. 6. The ostensible cause of this prohibition was to prevent the importation of diseased cattle, but pleuro-pneumonia existed previously in the Province, and it was only asked that such cargoes should be landed as were certified to be clean both on leaving Australia and arriving at Taranaki. 7. The contract specially provides that neither party could terminate it before the 31st March, 1866, and being one embracing the whole of the Northern Island, it was impossible for me to meet the obstruction imposed by the prohibition against importation by making a contract with parties belonging to, and residing in Taranaki, as was proposed by the Superintendent, without breaking faith with Mr. Johnson. He has, however, entered into sub-contracts in the Province, but without importation the supply could not be kept up. 8. Martial law was in force in Taranaki from February, 1860, to August, 1865, when it was annulled, thus preventing landing cattle under it in case of necessity. During the interval, the military authorities might have landed the cattle, irrespectively of the Superintendent and his local laws ; but, out of respect and deference to them, this power was not exercised —tho military preferring to receive fresh meat of an inferior quality, and when even that was not procurable to live upon salt rations. The New Zealand Constitution Act of 1852 distinctly provides against the levying of duties on supplies imported for Her Majesty's troops. In Article 61 it is provided that —" It shall not be lawful to levy any duty upon articles imported " for the supply of Her Majesty's land or sea forces, or to levy any duty, impose any prohibition or " restriction on any articles of supply for Her Majesty's forces." The prohibition is, therefore, in direct opposition to this Act, and the instructions contained in the Commissariat Begulations respecting importations have been duly adhered to. Viewing these circumstances from every point, I can only arrive at the opinion, that the prohibition was imposed expressly to put obstructions in the way of the contractor, in order to prevent him from carrying out his contract, as the settlers were anxious both to retain the contract in the hands of one of their own number, and to secure a higher price for the few animals they had in the Province.

DESPATCHES PROM THE SECRETARY OP STATE

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