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THE NEW ZEALAND GAZETTE.
[No. 27

citizens of a great State must desire to see maintained and developed. The more firmly the bonds of relationship between English-speaking people are drawn together the better it must be for every colony and dependency of the Empire.

The question of Naval Defence has necessarily been discussed by the delegates. I am glad to be able to inform you there seems every prospect that a reasonable and fair arrangement will be concluded between the Mother-country and her colonies. A proposal has been made, which will be duly submitted to you, by which, at a comparatively small cost to the colony, the fleet in the Australasian waters will be increased, and due provision made in time of war for the protection of coasts and shipping. Perhaps, however, the most gratifying announcement that can be made in reference to this subject is that the firmness of my Advisers in urging the claims of New Zealand to be regarded to some extent as a distinct naval station, has been crowned with success. New Zealand, subject to your approval of the proposed arrangements, is henceforth to be the headquarters of a portion of the fleet, with a peace establishment of two vessels of war. Such a recognition of her maritime position cannot fail to be of service to her commercially; and my Ministers desire to express their sense of the generosity with which the other colonies supported this proposal. So far as the Conference has proceeded, all may rejoice at the harmony that has characterized its proceedings, and at the evident feeling in favour of union that has been displayed by Her Majesty’s subjects in all parts of the Empire.

Intimately related to naval protection are the defences of the principal ports, which are also the chief centres of the wealth of the country. I am glad to be able to state that the defence works are gradually approaching completion, and that the Government is now in a position to entrust their execution to the permanent forces of the colony. When the forts and batteries are finished, the harbour defences of New Zealand will redound to the credit of the colony, and will be of the utmost service to her should war unhappily arise.

The cultivation of friendly feelings amongst the colonies cannot be too strongly urged. The Colony of Victoria is about to celebrate the Australian centenary by holding an international exhibition, and you will be asked to consider whether New Zealand shall be represented on such an important occasion. An exhibition of this character cannot fail to be of immense service to the colonies in bringing before visitors from all parts of the world the products and resources of these vast territories that only require capital and labour for their further development.

The increase in the price of wool, and the bountiful grain harvest that has just been reaped, must have a beneficial effect on all the industries of the colony. Though the price of agricultural produce has been low, the work of settlement has made great progress, and you will be pleased to learn that large numbers of families have been attached to the soil during the past year under the various schemes of land settlement that are provided for in the Land Act. When the large areas that have been recently acquired from Native owners on the route of the North Island Main Trunk Railway have been made available for occupation by the construction of the line, there will no doubt be further extension of settlement in the interior of this Island. The difficulties in the past in arranging with Natives for obtaining suitable land are daily being lessened, and the recent adjudications by the Native Land Courts on some millions of acres prove that the Maoris are awakening to the advantages to be derived from the profitable occupation of their lands.

Papers will be laid before you regarding the conference held in Sydney relating to the importation of stock into the colonies.

GENTLEMEN OF THE HOUSE OF REPRESENTATIVES,—

The Estimates of the revenue and expenditure for the current financial year will be brought before you at an early date. The revenue has been diminished to a considerable extent, partly by the fall in the price of goods, and partly also by the happily increased habits of temperance amongst the people. My Advisers recognize the necessity of limiting the expenditure as far as the wants of the colony will permit, and I have no doubt that when the financial position and requirements of the country are placed before you they will receive your most careful consideration.