No. 5.
Copy of Treasury Minute,19th July, 1839, sanctioning an Advance from the Revenues of New South Wales, on account of the Expenses of the Officer about to proceed to New Zealand as Consul, &c.

Read letter from Mr. Stephen, dated 4th instant, transmitting, by direction of the Marquis of Normanby, for the consideration of this Board, with reference to a communication from his Lordship's Department of 13th ultimo, on the subject of the establishment of some British authority in New Zealand, a letter from Captain Hobson, of the Royal Navy, who is about to proceed to New Zealand as Her Majesty's Consul, and as eventual Lieutenant-Governor of such territory as may be ceded to Her Majesty in the New Zealand Islands, with an estimate of certain expenses it will be necessary to incur in respect of this mission, for his passage to those Islands, construction of a residence, presents to Native chiefs, and other incidental charges.

My Lords have again before them the letter from Mr. Stephen, of 13th ultimo, adverting to circumstances which had appeared to the Marquis of Normanby and to Viscount Palmerston to force upon Her Majesty's Government the adoption of measures for establishing some British authority in New Zealand, for the government of the Queen's subjects resident in or resorting to these Islands; and, with that view, proposing that a British Consul should forthwith be despatched to New Zealand; and that, upon cession being obtained from the Native chiefs of the sovereignty of such territories therein as may be possessed by British subjects, those territories should be added to the Colony of New South Wales as a dependency of that Government; and likewise proposing that the officer about to proceed to New Zealand as Consul should be appointed Lieutenant-Governor of this dependency; and that the expenses which must necessarily be incurred for his passage, and for the purchase of articles which will be required for immediate use in the public service, or for presents to the Native chiefs, should be defrayed by advances from the funds of the Government of New South Wales, to be hereafter repaid from such revenue as may be raised within the ceded territory by virtue of Ordinances to be issued for the purpose by the Governor and Council of New South Wales, from page 13 which revenue also all other expenses relating to the government of this dependency are to be Provided for.

My Lords also refer to the opinion of Her Majesty's law officers, that any territory in New Zealand, of which the sovereignty may be acquired by the British Crown, may lawfully be annexed to the Colony of New South Wales, and that the legislative authority of New South Wales, created by the Act of 9 Geo. IV. c. 83, may then be exercised over British subjects inhabiting that territory; and my Lords likewise refer to the provision made in the estimate for consular services, now before the House of Commons, for the salary of a Consul at New Zealand.

My Lords also read their minute of 21st ultimo, expressing their concurrence in opinion with Her Majesty's Secretary of State, as to the necessity of establishing some competent control over British subjects in the New Zealand Islands, and further stating that this Board would be prepared, upon the contemplated cession in sovereignty to the British Crown of territories within those Islands which have been or may be acquired by Her Majesty's subjects, under grants from the different chiefs being obtained, to concur in the proposed arrangements for the government of the ceded territory, and for raising a revenue to defray the expense of the establishment it would be necessary to maintain for this purpose.

Write to Mr. Stephen, and, in reply to his further communication of 4th instant, now before this Board, request he will signify to the Marquis of Normanby my Lords' sanction for the advance by the Agent-General for New South Wales, from funds appertaining to the Government of that Colony, of the amount required to defray the expenses of the officer proceeding to New Zealand, as specified in the estimate furnished by Captain Hobson, and submitted to my Lords in Mr. Stephen's letter, with the understanding that such advance is to be repaid from the revenues of the territory it is proposed to annex to that Government. But Mr. Stephen will, at the same time, state to the Marquis of Normanby, that, as the proceedings about to be adopted in regard to New Zealand, in the event of the failure of the anticipated cession of sovereignty and of the contemplated revenue, may involve further expenditure from the funds of this country beyond the salary of the Consul already included in the estimate for consular services for the current year, my Lords have considered it necessary that the arrangement should be brought under the cognizance of Parliament; and they have therefore directed that a copy of their minute, giving the sanction now notified to Lord Normandy, shall be laid before the House of Commons.