That the debt of half a million claimed from the colony by the Im perial Government, the payment of which was auother of the conditions in question, has been defrayed by the colony—thus showing every desire on its part to satisfy just claims, oven without the Imperial guarantee. 9. That the Imperial Government has repeatedly been informed that the increased rate of contribution could not be paid by the colony; and that no obstacle has been raised by the Colo nial Ministers to the removal of the troops. 10. That the colony has incurred liabilities to the amount of between three and four millions of pounds sterling in its military defence, since June, 1863, 11. That the Governor has, in viola. , tion of instructions, been precluded from exercising the slightest control

over a vast military expenditure of Im perial funds, ou which in a great mea sure hinged the amount of a similar expenditure of Colonial funds. 12. That for the last twelve mouths active military operations have been aud aro now being conducted by the colony at its sole expense, and with its own forces, which obviate the necessity of charges on Imperial funds, 13. That under those circumstances the requirement of the increased rate of contribution ought not to bo made on any ground of good faith or of jus tice ; and should the Homo Govern ment arbitrarily insist upon it, it will undoubtedly hereafter be a matter of regret that a great country should have so treated a helpless dependency, already weakened by the efforts it has made and is malting for its military defence. The following memorandum refers to the Imperial claims against the co lony, and gives the various grounds on which Mr. Stafford bases a counter claim by the colony on the Imperial Government. It is dated April 10, 1860: — His Excellency's Ministers have given much attention to the question of the claims which have for some time been preferred by the Imperial Govern ment against New Zealand. They believe it to bo most desirable that these claims should be settled as soon as possible, and that no miscon ception with respect to them should continue to exist: and with that ob ject they have endeavoured to ascertain the exact sum for which the colony was fairly liable. 