A.—4c

48

No. 9. Governor Sir H. B. Loch, K.C.8., Victoria, to the Eight Hon. the Earl of Derby, K.G. (Eeceived 21st April, 1885.) My Lord, — Government House, Melbourne, 12th March, 1885. In reply to your Lordship's despatch of the 11th December last, transmitting a copy of the draft Federal Bill with certain proposed amendments for any observations my Government might desire to make thereon, I have now the honour to transmit a copy of a memorandum, dated the 11th March instant, that I have received from my Government with the conclusions at which they have arrived in respect to the amendments suggested by Her Majesty's Government, and these conclusions I have forwarded this day by telegraph to your Lordship. I have, &c, The Eight Hon. the Earl of Derby, K.G. &c. Henry B. Loch.

Enclosure in No. 9. Memorandum for His Excellency the Governor. Melbourne, 11th March, 1885. Mr. Service presents his duty to your Excellency, and, with reference to Lord Derby's despatch of the 11th December, 1884, on the subject of the draft Bill to constitute a Federal Council of Australasia, begs to inform your Excellency that this Government have carefully considered the amendments proposed by the Imperial Government, and have come to the following conclusions with respect thereto —namely: Clause 1. Amendments agreed with. Clause 3. Should not be struck out, but proviso should be added as follows : " Subject to provisions herein contained in respect to the operation of this Act." Clause 5. Amendment disagreed with. Clause 15. Agree to omit line 3; disagree with new subsection after (g) ; agree to new subsection after (h). Clause 20. Agree to amendments. Clause 26. Agree to amendment in first line ; .disagree with the other. Clause 31. New clause disagreed with. James Service, Premier.

No. 10. The Agents-General for Victoeia and Queensland, to the Colonial Office. (Eeceived 23rd April, 1885.) My Lord, — 8, Victoria Chambers, Victoria Street, Westminster, S.W., April, 1885. In the course of our discussion on the 30th ultimo, on the subject of the Bill now before the House of Lords to enable the Australasian Colonies to federate, you expressed your willingness to receive from us a written statement formulating the objections entertained by the confederating colonies to your introduction into this measure of the 31st clause, which permits any one of their number, after having joined the Federal Union, to retire at its own pleasure. Since our interview with your Lordship the clause has been further altered in a way which aggravates, in our opinion, its objectionable nature ; but, even as it originally stood, we conceive that the reluctance of the confederating colonies to adopt it is well founded. It was, we believe, your Lordship's expectation that, by the insertion of this clause, the entrance of New Zealand and possibly New South Wales into the Federal Union might be secured. As, however, it has been ascertained that even the inclusion of this clause would not secure the adhesion of those colonies, it is, we submit, unreasonable that their wishes should bo allowed to outweigh the deliberate resolutions of the other colonies who have undertaken to unite. The practical effect of the clause on the permanency and efficacy of the Federal Union must be disastrous. It is provided in the Bill that the Federal Council must consist at least of the representatives of four colonies, and that number has only just been reached. Can it be desirable, then, that a measure intended to promote union should, in its original construction, provide for dissolution practically at the will of any one colony ? The action of the Council would be thereby paralyzed, and it would legislate, indeed, under perpetual fear of destruction by the minority. The practical experience of the Canadian Confederation is, we are enabled to state, opposed to the granting of such a power. That Union, which is now fairly secured, would assuredly have broken up had this provision formed part of the original articles of confederation. It has been urged that the union of the Canadian Colonies was of a different and far closer character than the proposed Australasian Confederation. We fail to see, however, why the character of the bond, which has been purposely made light in order that it may last and grow, should be held to justify a provision which will certainly tend to weaken and possibly to destroy it. The advocates of this clause have asked what would happen, unless it be inserted, 'should one of the colonies desire subsequently to retire from the Federal Union. Surely this is equally applicable to the closer federation of the North American Colonies, and one of the provinces, in fact, did, as we are enabled to state, desire to withdraw from that Union at a very early period of its existence, and yet remains a satisfied member of it at the present day. It is not to be supposed that the four colonies, which have maintained their resolution to unite during the whole period which ha selapsed since the meeting of the Sydney Convention in December, 1883, have not seriously considered this point, and if they are unanimous in rejecting the proposition we submit that their wishes should not be lightly disregarded. We also desire to impress upon your Lordship the great disadvantages which, in our judgment, attend the section of this clause enabling a seceding colony through its Legislature to nullify the obligations which it had entered into while acting as a member of the Federation. It might thus happen that the whole burden of a policy entered into with the cordial sanction, or even on the invitation, of the seceding colony might be thrown upon those members of the Federation who