Sir Julian Pauncefote to Mr. Gresham.

Sir: In accordance with instructions received from the Earl of Rosebery, I have the honor to inclose copy of a dispatch addressed to his lordship by Her Majesty’s consul at Apia, reporting further complications in the Navigators Islands and the action which it is proposed to take in the matter.

I have, etc.,

Julian Pauncefote.
[Inclosure.]

Mr. Smith to Lord Rosebery.

My Lord: I have the honor to report that since the date of my last dispatch I have ascertained that war is almost inevitable. I have cabled to your lordship regarding a man-of-war, but I have every hope that the two officials supported by the consuls will succeed in averting any danger from the white residents.

Tamasese has been proclaimed King according to the most reliable information.

My colleagues have called for war ships, but I shall not request the senior captain, R.N., at Aukland to send a ship unless it is absolutely necessary.

I have summoned the three consuls and the chief justice and president to discuss the situation, and every effort will be made to settle the matter on the spot.

I have, etc.,

T. B. Cusack Smith.