[Enclosure No. 9.]
G. P. Pennington To James Stephen, Esq.

Having laid before the Lords Commissioners of Her Majesty’s Treasury your letter dated 4th instant, transmitting the copy of one from Captain Hobson enclosing an estimate of the expenses for the first establishment of a colony in New Zealand, I am commanded by their Lordships to request that you will signify to the Marquis of Normanby my Lord’s 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 your letter, with the understanding that such an advance is to be repaid from the revenues of the territory it is proposed to annex to that Government. But you 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 failure of the anticipated cession of sovereignty and of the contemplated revenue, may involve a 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 Normanby shall be laid before the House of Commons.