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.„ Enclosure 4. The Colonial Office to the Agent-Geneeal for New Zealand. Sic,— Downing Street, 13th May, 1889. With reference to your letter of the 18th March, I am directed by Lord Knutsford to transmit, for your information, a copy of a letter from the Treasury respecting the sinking fund of the guaranteed loan. I am, &c, The Agent-General for New Zealand. John Beamston.

No. 15. (New Zealand, No. 15.) My Loed, — Downing Street, 17th June, 1889. With reference to the telegraphic correspondence which has passed on the subject of the appointment of Major-General Edwards, R.E., C.8., to inspect the local forces of the Australian Colonies, I have the honour to transmit, for the information of your Government, a copy of the instructions addressed to that officer by the Secretary of State for War. It will be within your recollection that in my circular despatch of the 31st January, 1888, it was proposed, in accordance with the feeling expressed at the Colonial Conference in 1887, that an Imperial officer of high standing should be appointed to advise the respective Governments in the first instance as to the uniform organization of their local forces, with a view to enabling them to cooperate effectively in the event of joint action becoming necessary, and, further, to make provision for periodical inspections in subsequent years. It was not, however, found practicable to arrange for the apportionment between the colonies of the cost of that proposed arrangement, and it occurred to Her Majesty's Government that, as a preliminary measure, if it should be acceptable to the Governments of the Australasian Colonies, or to a sufficient number of them, Major-General Edwards, R.E., C.8., who is at present in command of Her Majesty's troops on the China station, might be instructed to take an early opportunity of visiting those colonies for the purpose of inspecting the forces, and conferring with the Colonial Governments on any matters regarding which they might desire his advice. The expenses of this visit are to form a charge upon Imperial funds. I observe with pleasure that this proposal has been received with general satisfaction in Australasia, and I trust that it will be found that the advice of General Edwards will be productive of much good to the colonies, while at the same time it will be very advantageous to Her Majesty's Government to receive from this experienced officer full information as to the present state of training of the colonial forces and their organization for war. I have, &c, KNUTSFOED. Governor the Right Hon. the Earl of Onslow, G.C.M.G., &c.

Enclosure. Sir, — Horse Guards, War Office, 3rd June, 1889. In confirmation of the telegram from this department of the 31st May (copy enclosed), I am directed to acquaint you that the Commander-in-Chief has approved of your inspecting and reporting upon the Australasian military forces, and you will accordingly place yourself in communication with the Governors of the respective colonies, and make arrangements with them as to the dates, &c, on which these inspections can most conveniently be carried out. Your aide-de-camp may accompany you. I am to add that the reports of your inspections, and any recommendations you may consider it advisable to make in regard to the organization of the various local forces on a uniform basis, should be addressed to the Colonial Governments concerned, and duplicates .furnished for His Eoyal Highness's information. His Eoyal Highness, whilst anxious that your inspection should be as complete as possible, trusts that no unnecessary delay will take place in your returning to your command. I have, &c, Godfeey Cleek, D.A.G. The General Officer Commanding the Troops in China and the Straits Settlements.