5

A.—7

7. It was after this conversation that the Governor pressed so repeatedly upon Sir George Grey —he must say, even to his regret —the question, If a Dissolution was accorded to him, would he dissolve whether Supply was granted or not ? That question, Sir George Grey submits, was one to which, if required to give an answer, he could not with propriety have given any other answer than that which he gave to the Governor. Indeed, he ventured to add, when once replying, that, in his belief, the Governor had nothing to do with this matter, because the decision ought to rest with the Ministers, the Parliament, and the people ; and that the Governor should rely that they would decide in the manner which would be most accordant with the interests of the country and the desire of its inhabitants. Wellington, November 16,1877. G. Geey.

No. 4. Memoeandum to Sir Geobge Gbey, X.C.8., <&c. The Governor presents his compliments to Sir George Grey, and begs to acknowledge the receipt of his Memorandum of this day's date. The Governor regrets extremely that there should be the slightest discrepancy between the impression left on his own mind and that of Sir George Grey, as regards the conversation which took place on the 26th of October; and after Sir George Grey's explanation, he is, of course, quite ready to admit that he must have misunderstood what Sir George Grey said. Notwithstanding this, the Governor must still adhere to the decision he has expressed as regards a Dissolution. Government House, AVellington, 16th November, 1877. Nobmanby.

No. 5. Memoeandum for His Excellency. Ministees present their respectful compliments to His Excellency. 2. The Governor will find from the enclosed Memorandum by the Secretary to the Treasury, that large sums fall due as interest in London between this date and the Ist of February next. Those sums amount in all to £326,247. The Secretary to the Treasury points out that no provision has been made for their payment; and that unless steps are immediately taken to provide the funds necessary for that purpose, serious difficulties must ensue. 3. Ministers have also the honor to enclose another Memorandum by the Secretary to the Treasury, showing that the funds available for Public Works will be exhausted in five or six weeks from the present date. If the Public AVorks now being carried on are abruptly stopped at that time, disaster and distress of the most severe kind must necessarily follow. 4. In the belief of Ministers, if it were known that a Dissolution would, if necessary, shortly take place, Parliament would, before being dissolved, unhesitatingly do all that is needed to enable funds to be promptly provided for paying interest and for continuing Public Works. 5. On the contrary, if the two Parties in Parliament are left to contend for some time longer, in order that the Governor may ascertain if he cannot even yet secure a Government such as he desires to obtain, it is the belief of Ministers that the disasters they have pointed out cannot be averted. 6. Ministers have carefully considered His Excellency's Memorandum of the 15th instant, addressed to the Premier, but they cannot find iv that Memorandum any reasons which seem to them to be sufficient to justify the refusal of a Dissolution under the circumstances now stated. 7. The Governor, in that Memorandum, says that he knows as a fact that the course uniformly adopted in England, of voting the Supplies necessary for an appeal to the country, has not been uniformly adopted in the colonies; and that he is, therefore, of opinion that the question of Supply must enter into his consideration in deciding upon a Dissolution. 8. The Governor in this seems to assume that the Queen's subjects have in some colonies exercised their constitutional rights in a manner prejudicial to their own interests. Whether they have done so or not, Ministers cannot say, for they have not all the facts before them. Probably, the colonies alluded to knew what their interests required, and did that which circumstances rendered necessary: but even admitting that they acted unwisely, Ministers feel certain that such action would not justify His Excellency in the course he proposes to take ; for the fact of other colonies having exercised their constitutional rights in such a manner as to prejudice their interests, would be no justification for depriving the people of New Zealand of their undoubted constitutional rights, lest they should do the same. Their Governor is simply to do his duty as a Constitutional Ruler. He has no power to take from the people their rights :he should leave them fairly to exercise those rights. If they injure themselves, the fault is theirs: he is not to blame. But in the case of the people of New Zealand, the Governor need be under no apprehension. They understand their own rights and interests, and are quite capable of taking care of themselves. 9. Ministers venture to think that the Governor is mistaken in believing that the power of dissolving the New Zealand Parliament is a prerogative of the Crown, and that the Governor of this colony is directly responsible to the Crown for his exercise of that prerogative. It appears from the 44th section of the Constitution Act, that the Governor derives that power from a law and not from Her Majesty —that the Governor is really responsible to the law for the exercise of that power. A Superintendent of a Province might as justly have claimed that he was responsible to the Crown for the exercise of the power of proroguing his Provincial Council, instead of admitting that he derived that power from the Constitution Act. 10. Ministers trust that, upon reconsideration, the Governor will see that he is only responsible to the Crown in this matter, in the sense in which he is responsible to the Crown for all his acts; that