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1886. NEW ZEALAND.

RECIPROCITY WITH FIJI AND TONGA (CORRESPONDENCE RELATIVE TO).

Presented to both Houses of the General Assembly by Command of His Excellency.

No. 1. The Hon. Sir Julius Vogel to Eev. Shieley W. Bakee. Sib, — Waiwera, New Zealand, 11th February, 1886. I have the honour to place before you the result of several interesting interviews which I have had with you. At these interviews we considered in all its aspects the prospect of increasing and developing the commercial relations between this colony and the several groups of islands nearest to it. With the concurrence of my colleague the Premier I have discussed with you the terms of a Customs arrangement which would tend to promote the purposes to which I have referred. It is understood between us that the conclusions we have come to are subject, first, to the approval of the Executive Government, and, next, to that of the General Assembly, as far as New Zealand is concerned, and that they are subject as regards yourself to the approval of your King and Parliament. Moreover, as we concurred in thinking that any agreement we should make would only be desirable if Fiji is willing to join in it, the provisional arrangement we have discussed is dependent on Fiji adopting it. It is also agreed that the arrangement may be extended to the Samoan, Cook, Society, and Marquesas groups of islands if approved by thair several rulers. Appended hereto is a copy of the list I have already submitted to you, showing in detail the several articles the produce or manufacture of New Zealand which it is proposed shall be admitted into Tonga on the terms and conditions specified therein, together with a copy of the list you have handed to me of goods the produce of Tonga which it is proposed shall be admitted into New Zealand on equally favourable terms. It is mutually agreed between us that, whatever further steps may be taken to give effect to the arrangement sketched out above, the following articles—namely, spirits of all kinds, manufactured tobacco, cigars and cigarettes, and refined sugar—in so far as New Zealand is concerned, shall be excluded from consideration, and. that they shall be chargeable in this colony with the full rates of duty leviable on them for the time being. I understood it to be your desire that any agreement or treaty that may result from our present negotiations shall be in force for the term of seven years from the date of its being entered into, and that it shall thereafter be terminable on six months' notice being given by either party to it. It is to be understood, in the event of a treaty with Tonga being entered into, that ports of entry will be appointed in the various islands of that group to which vessels usually resort for trading purposes; that the same privileges that exist in New Zealand as to warehousing, removing from port to port, and exporting goods under bond will be allowed in Tonga for goods from New Zealand; and that no charges shall be made in Tonga for Customs entries in respect of such goods. I have, &c, The Hon. Shirley W. Baker, Julius Vogel. Premier and Minister of Foreign Affairs of Tonga, &c, Waiwera. I—A. 10.