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No. 8. The Agent-Geneeal to the Hon. the Minister for Immigration. (No. 212.) 7, Westminster Chambers. Victoria Street, Westminster, S.W., Sic, —■ Ist March, 1877. I have the honor to forward you a memorandum from Mr. Walter Kennaway respecting a renewal of his appointment. After looking through the papers supplied to me by Mr. Kennaway, I am inclined to agree with him that the provision respecting the sum of £250 to be paid for his return expenses was not originally intended to be coupled with the condition that he would not be entitled to it if he continued in the service beyond the three years. I have not my original memorandum, but I judge from the memorandum which Mr. Kennaway made of our conversation when, under the express authority of the Cabinet, I personally made the arrangement with him. Probably my memorandum will be found amongst the official records, or in the private Cabinet journal. If I am right in my impression as to the original understanding, the proviso in the letter of appointment was outside that understanding, and was probably due to the desire to leave no liability existing beyond the three years' term, as also to make it necessary there should be a fresh agreement when that term expired. I see no reason why Mr. Kennaway should not receive the £250 if he remain longer in the service, provided he uses it to take his family and himself back to New Zealand. I urgently recommend Mr. Kennaway's re-engagement, and I consider the terms he proposes fair, viz., that he should hold the appointment subject to a right of notice on either side of three or six months. Seeing the importance of his office, I think the latter term the better, as it would give some opportunity to sup ply his place. The £250 should be made contingent on his starting for New Zealand, accompanied by his family, within, say, six months of his leaving the department. I have to express a strong opinion that Mr. Kennaway's services are most valuable to the Agency. He has a good knowledge of the colony, and is well trained to the work of an official department, and to these qualifications adds great application, steady devotion to his work, an evenly balanced and sound judgment, and very considerable ability. It would be difficult to supply his place. In justice to Mr. Kennaway, I have to ask that you will (if there is no obstacle in the way) communicate to me your decision by return mail. I have, Sea., The Hon, the Minister for Immigration, Julius Vogel, Wellington. Agent-General.

Enclosure in No. 8. Memoeandum from Mr. Kennaway to the Agent-Geneeal. In accordance with your suggestion, I beg to bring under your notice the subject of my appointment as Secretary to your department, and herewith are papers relating thereto. 2. Three years are mentioned as the length of the term of my appointment, which I presume commenced from the date of my reporting myself to the late Agent-General —namely, January 2nd, 1875. 3. Should the Government deem fit to offer to renew my engagement on terms similar (with one exception) to those indicated in my letter of appointment, I am willing to continue to place my services at their disposal. 4. The exception to which I refer is the limitation of the time during which I should be entitled to receive an allowance for my return passage to the colony, my letter of appointment stating that " should I remain in the service over three years, I should not be entitled to receive any amount for my return passage." 5. I did not understand at the time I accepted the appointment that this was one of the conditions, and, as my letter of appointment was sent to me so late as to reach me only three days before I left, I had no opportunity of settling the point. In my letter of October 23rd, 1874, acknowledging the receipt of my letter of appointment, I took occasion, however, to draw attention to it, and to state that I did not so understand it. 6. As, unless I remain in the service of the Government, I should return to the colony, I have to ask the Government, in case they see fit to renew my engagement, that the allowance (£250) for my passage to the colony be made to me, should I return within a reasonable time, say six months after the termination of my engagement. 7. In connection with my passage expenses, I may say that at the time of tho year I had to leave the colony in 1874 there were no direct sailing vessels being despatched to England, and, in order to comply with the express wish of the Government that I should leave as soon as possible, I went via Suez which involved me in an expenditure of £300 over and above the amount (£250) allowed, whereas by sailing vessel tho allowance would have been sufficient. 8. I also think it right to add that I have found the cost of living in England more than I anticipated, and much more so than it is in the colony. 9. I do not, of course, ask for another three years' engagement, but would venture to suggest one with three or six months' notice on either side. 10. The attached papers will give you the correspondence which took place on the occasion of my appointment, and will confirm the statements made in this memorandum. 28th February, 1877. Walt.cc Kennaway.