A.—2

14

No. 11. (No. 40.) My Lord,— Downing Street, 30th April, 1902I have the honour to acknowledge the receipt of your despatch (No. 11) of the 18th February, and to transmit to you, for the information of your Ministers, copy of a correspondence with the Pacific Islands Company, from which it will be seen that this company would prefer a new lease of Suwarrow Island to the indorsement of the existing lease. 2. In explanation of the company's letter of the 16th instant, I may state that at present Christmas and Suwarrow Islands are included in one lease, but that it is intended to include the former island in the new general license about to be issued in respect of the islands held by the company from His Majesty's Government, and the existing lease will then, so far as Christmas Island is concerned, be cancelled. 3. As regards the point raised in paragraph 3 of your despatch under acknowledgment, you will have noticed on reference to the lease that the reservation which has been proclaimed of certain portions of the island for naval purposes is within its terms. I have, &c, J. CHAMBERLAIN. Governor the Right Hon. the Earl of Ranfurly, G.C.M.G., &c.

A.-l, 1902, No. 77.

Enclosures. Sir,— Downing Street, 9th April, 1902. With reference to the last paragraph of the letter from this Department of the 13th September, 1901, I am directed by Mr. Secretary Chamberlain to request you to inform the Pacific Islands Company that he is advised that it will be sufficient to indorse the license held by the company in respect of Suwarrow and Christmas Islands with a statement to the effect that, owing to the inclusion of the former island within the boundaries of New Zealand, the powers given by the license to the Secretary of State and the High Commissioner have passed to and will in future be exercised by the Governor of that colony, as far as Suwarrow is concerned. 2. The Government of New Zealand have concurred in the proposal that such an indorsement should be made. 3. I am therefore to request that the license may be forwarded to this Department in order that it may be indorsed as indicated above. It will then be returned to you. I am, &c, The Secretary, Pacific Islands Company. H. Bertram Cox.

The Pacific Islands Company (Limited), 120-123, Fenchurch Street, Sik,— London, 8.C., 16th April, 1902. I have the honour to acknowledge the receipt of your letter of the 9th instant (No. 12214/1902), the, contents of which have been communicated to my board of directors. They now instruct me to respectfully point out that your letter of the 11th January (No. 1070/1902) conveys an expression of Mr. Chamberlain's willingness to agree to the issue of a new lease of certain cocoanut islands, including Christmas Island ; and, this being the case, they conclude that on the issue of this new lease the old lease of Christmas and Suwarrow Islands will be extinguished. If their assumption is correct, they will be glad to learn what steps they should take to secure a new lease of Suwarrow Island. I have, &c, The Pacific Islands Company, Limited, A. J. Reeves, Secretary. The Dnder-Secretary of State, Colonial Office, Downing Street, S.W.

Sin- Downing Street, 30th April, 1902. I am directed by Mr. Secretary Chamberlain to acknowledge the receipt of your letter of the 16th instant, and to state that, in the circumstances therein mentioned it is for the Pacific Islands Company to consider whether, so far as Suwarrow Island is concerned, they should apply to the Government of New Zealand for a fresh lease for the remainder of the term of the existing lease. 2. The company is, of course, aware that the Governor of New Zealand recently proclaimed the reservation for naval purposes of certain portions of Suwarrow Island, and that the new lease would be subject to that reservation. 3. A copy of the correspondence is being sent to the Governor of New Zealand. I am, &c, The Secretary, Pacific Islands Company. H. Bektram Cox.