18

PAPERS RELATIVE TO CLAIMS AND COUNTER-CLAIMS

R—No. 5,

not been for the course already taken by the Imperial Government in appointing Mr. Jones to examine and report on claims preferred at his own instance, and connected with his own official proceedings, the correctness of many of which was the very question in dispute between the two Governments. For His Excellency tho Governor. E. W. Stafford.

Sub-Enclosure to Enclosure 1 in No. 6. Memorandum by Major Richardson. For the Hon. the Colonial Secretary. Lord Carnarvon's letter of the 21st of February, with enclosures from Mr. Commissary-General Jones and Mr. G. A. Hamilton, having been placed before me for remark, I would observe: — 1. That in my report to His Excellency of the 6th instant, with accompanying correspondence between Mr. Commissary-General Stanley Jones and myself, there will be found a full explanation of the circumstances attending the execution of my duty as Commissioner in the examination of the Imperial claims against the Colony, and the Colonial claims against the Empire. I would not, therefore, remark further on this subject, were it not for an observation of Lord Carnarvon's, based upon the one-sided testimony of Mr. Jones, which leads me to believe that His Lordship is under the impression that a prompt examination of the accounts had not been undertaken when Mr. Jones penned his letter of the 24th of November last. 2. I must express my regTet that Mr. Commissary-General Jones did not furnish me in November last with a cop}' of his letter in question; but allowed his remarks to remain unchallenged until this month, when, a copy being forwarded from Downing-street, I am enabled to reply. 3. I would observe that Mr. Commissary-General Jones' remark about my appointing an accountant who is " utterly unacquainted with the whole nature of the claims," is very infelicitous, —for, being desirous of an impartial examination, I appointed a gentleman, unconnected with either the Imperial or Colonial Governments, of well established reputation and thorough business habits, and I must be pardoned for saying that I think it would have been more in consonance with the principles of a thorough audit and examination of the claims and counter-claims, if Mr. Jones had not been commissioned to undertake that duty, as the accounts to be examined were principally those of the department over which he presided, and his evidence, if necessary, might have been taken in elucidation of them. 4. My absence from Wellington, within telegraphic communication of my accountant, did not in the remotest degree impede the work entrusted to me, for while the accountant was engaged in an examination of the accounts and vouchers, I was also engaged in examination of the voluminous correspondence on the subjects in question, extending through a series of years. 5. I would further remark with reference to an observation of Mr. Jones, that I considered, and do still consider, that the course he recommended was "calculated to prejudice Colonial interests" to such an extent that I would have resigned the Commission rather than have undertaken it on the unsatisfactory basis which Mr. Jones pressed so urgently on my acceptance. I repeat what I have stated in the correspondence above referred to, that, had Mr. Jones remained a short time longer, we might have fulfilled the instructions of Mr. Hamilton in his Treasury Minute of the 24th March, ] 866, "to go minutely into the several items comprehended " in the account, and have made reports to our respective Governments. I will only further observe that I feel assured that by the end of May I shall submit to His Excellency my opinion in detail on the various claims and counter-claims, and on the large and important questions referred to me. Wellington, April 27th, 1867. J. Richardson.

No. 7. Copy of a Despatch from Governor Sir George Geky, X.C.8., to the Right Hon. the Earl of Carnarvon. No. 4S. Government House, Wellington, 27th April, 1867. My Lord, — Adverting to my Despatch, No. 37, of the 6th April, reporting the intention of CommissaryGeneral Jones, C.8., to return to England, I have the honor to enclose a copy of a letter addressed to myself by that officer, which was left at Government House an hour or two before his departure by the Panama mail. 2. Why he should have then left this letter I cannot conceive. It should either have been written at an earlier date, or not at all, as when he wrote it all interference on my part with his proceedings was impossible. 3. I cannot but regret that Mr. Jones should, by his hurried departure, have again done that which must tend to promote unjustly a belief that this Colony wishes to avoid meeting its just engagements. The Eight Hon. the Earl of Carnarvon, I have, &c, <kc, <fee, <fee. G. Grey. P.S.—Since I have written this Despatch, I have received from my Eesponsible Advisers a Memorandum upon Commissary-General Jones' letter of the Bth instant, and at their request I have the honor to transmit a copy of that Memorandum for your Lordship's information.—G. G. 29th April, 1867.