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doubt, by bountiful Nature-to the history of New Zealand during the year 1905.

The Opposition at the election was led by Mr. Massey, an able and practical politician, with a gift of engaging platform oratory. He was supported by a number of candidates chosen from the most clear-sighted and thoughtful members of the Moderate party in New Zealand. On the other side Mr. Seddon was confronted by an advanced Labour party who threatened to alienate many of his supporters in the cities. In the purely agricultural constituencies much influence promised to be wielded against the Premier by the Farmers' Union, composed of men of substance, averse from the experimental legislation which is a characteristic of New Zealand politics. How all these opponents fared at the hands of Mr. Seddon can best be told by giving the state of parties when the polls were declared.

It was then found that the Government had 56 supporters, the remaining seats being held by 16 Oppositionists, 3 Independents, and 2 "New Liberals." The victory was so overwhelming that even Mr. Seddon expressed the opinion that it might have been better had the opinions of his opponents found more adequate representation in the new House.

During the year an interesting contest took place between State Socialism and private enterprise, victory remaining in the balance at the close of the year. Encouraged by the success of the State Life Insurance Department, the Government embarked in the more hazardous enterprise of Fire Assurance, and began by reducing the rates observed by the private companies doing business in New Zealand. The companies were compelled to follow the example of the State, although it was declared that the rates charged by the Government did not permit the transaction of business on an equitable basis. In retaliation, the companies combined against the State Assurance Department, refusing to reinsure or share risks in the manner usual among themselves. It is possible that this attitude was adopted as a protest against State interference with well-conducted private enterprises; and in that case the companies may yet see fit to arrange some working compromise.

The most interesting legislation passed during the year was an Act aimed at the American Harvester "combine," which had introduced American Trust methods into the agricultural implement industry of the Colony.

The appointment of a High Commissioner to represent New Zealand in London was for the first time made during the year; the Hon. W. Pember Reeves, who had for some years acted as the Colony's Agent-General in London, being selected for the post.

In October Mr. Seddon laid the foundation at Christchurch of a building destined to contain the most extensive international exhibition that has yet been held in the Southern Hemisphere.

The despatch of a team of New Zealand Rugby footballers to Great Britain was hailed in the Colony as a historic event, and the remarkable success gained by the players certainly did much to familiarise the people of Great Britain with the resources and possibilities of New Zealand.

A consistent immigration policy was pursued throughout the year, with the result that New Zealand gained from Great Britain over 2,000 citizens of the most desirable class. Many of these took a considerable amount of capital with them to invest in agricultural and other enterprises in the land of their adoption. In Fiji the new Constitution is justifying the excellent promises made for it, and despite one terrific hurricane which did a great deal of damage to the plantations, the year on the whole was a very prosperous one.

III. POLYNESIA.

British New Guinea was provided by the Papua Bill, which passed the Commonwealth Parliament during the year, with a Constitution. It was hoped that under the new régime there would be a marked improvement in the state of affairs disclosed in the report made by the Administrator of British New Guinea for 1904-5. This showed that the white population only numbered 641, and that apart from gold valued at 56,3621., the Colony only exported a little sandalwood and copra, with a few miscellaneous articles of trifling value. The whole trade for the year was valued at 143,6231. The most important legislative enactment for the year related to the pearl-shell and béche-demer fisheries.

The difficulty created in the New Hebrides owing to the system of dual control exercised there under the Anglo-French Agreement of 1888 has been steadily intensifying. The trouble has been made more apparent by the rivalry between the missionary organisations representing the two countries in these islands. At one period of the year it was feared that these differences would lead to a native rising, but this was happily averted. The frequent representations made by the Commonwealth Government to the Colonial Office have not been without effect, and it was expected at the close of the year that the excellent relations existing between Great Britain and France would lead to the speedy announcement of a more workable arrangement.

The British High Commissioner in the Western Pacific followed up the intervention forced upon him by the exposure of corrupt administration on the part of the native Government in Tonga (ANNUAL REGISTER for 1904, p. 480) by appointing a European magistrate to administer the affairs of the island. An agitation for the annexation of the island to New Zealand has the support of the King, who visited Mr. Seddon during the year.

In the Marshall Islands great trouble was encountered by the important Australian trading firm of Burns, Philp & Co., owing to the attempt made by the German authorities to exclude British traders. The islands were at that time administered by the Jaluit Company, a German trading concern with interests in the group and in the surrounding islands. This company demanded a monthly trading fee, so heavy as to be almost prohibitive, from the Australian vessel Isabel, and also refused the Isabel water for her return voyage to Sydney. Messrs. Burns, Philp & Co. made a claim on the German Government for 10,000., which remains unsettled, on these scores. The Commonwealth Government meantime made representations to the Colonial Office for a remedy of the injustice, and Mr. Reid, who was then Prime Minister, publicly stated that if Germany persisted in placing this embargo on Australian traders retaliatory steps would be taken which would severely hamper German trade with the Commonwealth. No such steps were necessary, however. The German Government very promptly deprived the offending company of its administrative interest in the Marshall Islands and assumed a direct control. The grievance was forthwith abolished.

Similar trouble experienced by Australian traders in the Caroline Islands was similarly redressed by the German authorities.

PART II.

CHRONICLE OF EVENTS

IN 1905.

JANUARY.

1. General Nogi, in command of the Japanese forces besieging Port Arthur, received a letter in the evening from General Stössel proposing a meeting for the discussion of terms of surrender, and replied agreeing thereto and proposing noon next day for the meeting. In the morning of this day the very important fort of Wantai had been captured by the Japanese.

About 600 officers and men of the Coldstream Guards, who had arrived on a visit to Birmingham on December 31, when a reception was held in their honour in the Council House, attended morning service at the Cathedral, their band supplying the music. In the evening the band gave a sacred concert at the Town Hall, when Mr. Chamberlain made a speech, in which he dwelt on the great historic traditions of the regiment and on the duty of honouring the sacrifices made by soldiers.

2. The Japanese terms of capitulation for Port Arthur, which were generous (for details see Foreign and Colonial History, Chap. VI.), were accepted by General Stössel. The news of the fall of the fortress was received with unbounded joy in Japan.

The King and Queen and Princess Victoria left Sandringham for a week's visit to the Duke and Duchess of Devonshire at Chatsworth.

It was announced that Mr. Joseph Rowntree, Chairman of Rowntree & Co., Limited, of York, had established a Garden Village Trust at Earswick, West Huntington, near York.

3. The Duke and Duchess of Connaught left Portsmouth on board the cruiser Essex for Brest, en route for Egypt.

4. It was announced that Lord Mount Stephen had given bonds to the value of 200,000l., yielding an income of 11,000l. a year, to the King's Hospital Fund. His Majesty expressed his "high appreciation of this

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