902
THE NEW ZEALAND GAZETTE.
[No. 44

The proposal of the Imperial authorities to hand over the control of Norfolk
Island to New South Wales is of moment to this colony, as it is possible that
the island in question may be a landing-point in connection with the Pacific
cable, and on this and other grounds my Advisers protested against the proposed
change. The Imperial authorities have decided to reconsider the question.
The correspondence on the subject will be laid before you in due course.

The census recently taken, so far as the results are known, goes to show that
the population of the colony has largely increased during the past five years, more
particularly in the North Island. This must be attributed principally to the
rapid settlement which is proceeding and to the development of the mining and
other industries. In the Middle Island there has been a fair increase on the
whole, and in those parts, particularly on the West Coast, where there has been
little or no increase, it is satisfactory to note that, with the almost certain
increased development of coal- and gold-mining and timber industries, the popu-
lation in these parts will surely increase in the near future.

When I last addressed you I mentioned the fact that the Midland Railway
Company had failed to complete its contract, that great injury to the colony
would result owing to the consequent locking-up of five million acres of land, and
that the arbitration demanded by the company had been postponed by the arbi-
trators. The arbitration on this important question has since taken place. The
company claimed over £1,800,000, and, after an inquiry lasting over several
weeks, the umpire (the Right Hon. Edward Blake) found that the company
had no claim against the Crown, nor any right to recover any sum of money
from the Crown in respect of the said claims. The umpire further found
that the unreasonable and inexcusable delay by the company in the prose-
cution of the works connected with the railway, and also the wilful breach
of the contract as between the company and the Queen, justified me in
taking possession and assuming the management of the railway, and that
the power to do so had been rightly exercised. The good faith of the colony
having been impugned by the company, and the honour and integrity of its
public men being at stake, the finding of the umpire is eminently satisfactory.

Gentlemen of the House of Representatives,—

The estimates of revenue and expenditure for the current financial year will
be laid before you. The estimates of expenditure have been prepared with a due
regard to economy. The increased demands in connection with education, school-
buildings, technical schools, the Post and Telegraph service, roads to open up
lands for settlement, defence forces, and defence-works have been considered,
and votes for these purposes will be placed before you.

Honourable Gentlemen of the Legislative Council, and Gentlemen of the House of Representatives,—

The prevention of undesirable persons coming to New Zealand, especially
the Chinese, is of great importance as affecting the well-being and purity of our
race, and as unduly disturbing our trade and industries. In consequence of the
Australian Colonies having taken steps to protect themselves, and from other
causes, an increasing number of Chinese and race aliens have at recent dates
arrived in New Zealand, and my Advisers therefore deem it necessary that re-
strictive measures of a complete and comprehensive nature should at an early
date be enacted. A Bill dealing with the subject will be laid before you.

As you are aware, an Act was passed last session empowering this colony
to enter into a reciprocal treaty with South Australia. The Parliament of that
colony, however, declined to pass a similar measure. My Ministers deem it
advisable that steps should be taken to facilitate the opening-up of fresh markets
for our products, and that further efforts should be made in the direction of
reciprocity with the Australian Colonies, the Empire, and its dependencies.

It is with much pleasure that I am able to announce that there are
evidences which, during the latter portion of the last financial year, afford proof
of substantial progress having been made, and the increased revenue through the
Customs on articles not affected by the tariff of last session goes far to prove