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will be brought again with propriety under the control of the General Legislature; the Provincial Councils confining themselves, ultimately, to the discharge of duties similar to those which, in Canada, devolve on the District Councils.

7. I approve also of the change which you propose, in paragraph 7 of your despatch of November 30, 1849, to introduce in the present constitution of the Provincial Councils as to the suspension of their Ordinances by the Governor-in-Chief; but this is a power which, from the nature of the subject, should be very sparingly exercised.

8. On the question of the farther subdivision of New Zealand in general, or of New Munster, into Provinces, I must necessarily rely, in great measure, on your judgment. According to the best opinion which I am able at present to form, it is desirable that such subdivision should take place. The parties who are interested in the settlement of Canterbury, and I believe also those who are concerned in Otago, are desirous of having those settlements erected into separate Provinces, in which case Nelson would remain, as now, in connexion with Wellington. But the decision as to the limits of these Provinces I wish to remain with yourself.

9. This opinion, however, is not unconditional. I am not satisfied of the expediency of establishing in these smaller Provinces Councils entirely nominated by the Crown, as you appear to suggest in your despatch of November 30, 1849. I think, on the contrary, that no new Provinces should be constituted unless the representative element can be introduced into its Councils. But, even with a very small population, this appears to me practicable.

10. In the next place, I agree in your opinion, as expressed in your despatch of December 22, 1849, paragraph 20, that no new Province should be constituted, unless on the terms of supporting its own peculiar expenses, and contributing its fair proportion to those general expenses, whatever they may be, which may be charged on the whole community of New Zealand.

11. In order to carry these views into effect, I have advised Her Majesty to make the necessary change in the Charter of 1846. The Act of 1848, suspending the Constitution, does not suspend that portion of the Act of 1846, which empowers the Queen to divide the Island into Provinces, or that portion which enables Her to delegate to the Governor any portion of the powers which that Act confers upon her. You will therefore be empowered in general terms, to constitute new Provinces; and the Act of 1848 gives you sufficient authority (with the advice of the Legislative Council of New Zealand) to constitute Legislatures for such Provinces.

12. To facilitate the same object, the Royal Instructions will also be altered in the manner which you recommend in your despatch of October 22, 1849, as to the Constitution of the Executive Council.

13. When the inhabitants of New Zealand are thus invested with the power of managing the affairs of the separate Provinces by representative bodies, by which also they will be enabled to express their wishes and opinions to the General Legislature (which will, no doubt, be much assisted, and in great measure guided, by their advice), I trust that no serious inconvenience will result from the postponement for a short time of a change in the constitution of the latter body, by which a representative character will be given to it likewise.

I have the honor to be,
&c., &c., &c.,
(Signed) GREY.

Governor
Sir George Grey, K.C.B.,
&c., &c., &c.

A true extract,
G. S. COOPER.

COPY OF CORRESPONDENCE BETWEEN HER MAJESTY’S GOVERNMENT AND THE CANTERBURY ASSOCIATION.

(Laid before the Council July 9, 1851.)

Duplicate, No. 62.

Downing-street,
27th September, 1850.

SIR,—

It appears to me that I cannot adopt any better manner of making you acquainted with the views which Her Majesty’s Government entertain with respect to the management of the affairs of the settlement recently founded at Canterbury, in the Southern Province of New Zealand, than by transmitting to you the copy of a correspondence which has taken place on the subject under my direction, with the Canterbury Association in this country.

2. You will accordingly make the necessary arrangements for the affairs of that settlement, subject to the approval of Her Majesty’s Government, on a scale of the strictest economy which you may find consistent with effective service.

3. You will fully understand that it is my wish that you should exercise your own discretion in those particulars which I have