1134 ADMINISTRATION AND LEGISLATION [parTV In the autumn of 1874, Lord Carnarvon, then Secretary of State for the Colonies, suggested to the Governments of New South Wales, Victoria, Queensland, and New Zealand, that as they were specially interested in the annexation which had been decided upon in Australian interests, they should recognize their position by the payment of a small annual sum, not to exceed in any case £4,000, towards the probable deficit in the local revenue. New South Wales was ready to consider the suggestion, but the Government of Queensland was not prepared to make any contribution. Victoria was somewhat reluctant, and New Zealand would not contribute without a voice in the direction of the administration. The Imperial Government accordingly took the full burden of the expenditure upon itself, and abandoned the proposal of obtaining financial assistance with regard to Fiji. The question, however, was raised in a new form in 1875 by recommendations from the Governments of New South Wales, South Australia, and Queensland in favour of the annexation of New Guinea? In a dispatch of December 8, Lord Carnarvon indicated the view taken by His Majesty’s Government with regard to the whole position. It was contended that the possession of New Guinea and of other Western Pacific Islands would be of value to the Empire generally, and conduce specially to the peace and safety of Australia and the development of Australian trade, and the prevention of crime throughout the Pacific, and that the establishment of a foreign power in the neighbourhood of Australia would be injurious to British, and more particularly to Australian interests. He laid stress upon the fact that no offer had been made to contribute towards the cost of the administration of the territory it was proposed to annex. The only interest which would accrue to the Empire at large, as far as he could see, was the advantage of Australia. England had done enough to discharge her duty of main- * See Parl. Pap., C. 1566, Appendix, pp. 85, 86. Cf. Quick and Garran. Constitution of Commonwealth, pp. 637 seq. : Qee Parl. Pap., C. 1566 ; Rusden, Australia, iii, 603 seq.