I have considered Mr Wade's*1' letter of 5 August 1909 as desired.

The passing of a Surrender Act would not place the State in an anomalous position. Under section 111 of the Constitution, surrender by a State does not take effect until acceptance by the Commonwealth; so that until an Acceptance Act were passed by the Commonwealth, the jurisdiction of New South Wales over the territory would not be in any way affected. In this connection, reference may be made to the Act passed by the Parliament of South Australia for the surrender of the Northern Territory of South Australia (1907, No. 946<2'). That Act surrenders the Northern Territory to the Commonwealth, but is expressed not to come into force until a day to be fixed by Proclamation. It thus operates merely as an offer of surrender-and would undoubtedly have only so operated even without the clause postponing its operation, because the Constitution itself makes the acceptance a necessary condition of the surrender taking effect. A State cannot divest itself of territory, or endow the Commonwealth with territory, except with the concurrence of the Federal Parliament. From a constitutional point of view, the course suggested-namely, the passing of a New South Wales Act to surrender the territory indicated by the Government of the Commonwealth-is free from difficulty.

It thus becomes unnecessary to discuss the questions of the construction of section 125 suggested in Mr Wade's letter. I think that the best way of obtaining a mutual understanding on the whole question would be by personal interview with Mr Wade-for which his visit to Melbourne to attend the Premiers' Conference will afford an opportunity.

[Vol. 7, p. 191]

(1) Premier of New South Wales.

(2) The Northern Territory Surrender Act 1907 (S.A.).