Chapter 181: The Australia and New Zealand Federation
On March 20, 1904, officials from the governments of Australia and New Zealand formally met in Sydney, Australia, and began a ten-day period of peaceful negotiations.
This so-called period of peaceful negotiation was, in reality, a time for both governments to discuss the process of forming a federation, how much influence each nation would hold within it, and what the future relationship between the two governments would look like.
While the formation of a federation between New Zealand and Australia had become inevitable, the questions of who would lead the federation and how the two regions would be integrated were still worth deliberating.
Many participants attended the meeting, with the main players being the government of the Principality of Australia and the newly restructured government of New Zealand, which had transitioned from the colonial government.
In truth, aside from a change in name, the new government of New Zealand was virtually identical to the former colonial administration—aside from Arthur's role.
In addition to the two regional governments, the meeting also included members of the upper and lower houses from both Australia and New Zealand.
Yet in reality, whether it was government or parliament, whether in Australia or New Zealand, all were essentially under Arthur's control.
Therefore, this so-called meeting about establishing a federation was in essence a conversation among Arthur's subordinates.
If Arthur had wished, the meeting might not even have been necessary. After all, he already held executive power in New Zealand. General Pierce, who had controlled the military during the referendum, had returned to the British Empire, and the New Zealand garrison had been renamed the New Zealand National Defense Force—its commander appointed directly by Arthur.
Still, once the federation was established, it was necessary to clearly define the division of powers between the two regions.
Any small oversight or error could eventually lead to national disintegration, potentially threatening the foundational stability Arthur had worked so hard to build in Australia.
The meeting continued for more than ten days, during which the participants discussed everything from legislative and executive authority to future scenarios and contingencies for the federation.
On April 11, 1904, Australia and New Zealand jointly issued a statement declaring the formation of the Australia and New Zealand Federation, with Sydney as its capital.
That same day, following widespread petitions from the New Zealand public and requests from numerous senior officials, Arthur agreed to become Duke of New Zealand, ruling the Principality of New Zealand as an elected duke.
Although both Australia and New Zealand were monarchic principalities, there were significant differences in their systems.
Australia was a principality akin to a territory, with all of its land essentially being Arthur's private property.
However, the title of Duke of Australia was a fief granted by the British royal family, binding the Principality of Australia and the British Empire together.
If Arthur's royal line ever became extinct, the title of Duke of Australia would revert to the British Empire, since it had been originally granted from there.
New Zealand, however, was different. The title of Duke of New Zealand was considered an elected title, based on the will of the people rather than an imperial grant.
As long as Arthur retained the support of New Zealanders, the title would persist—and could even be inherited by someone outside his family.
Using this opportunity, the Australian administrative regions were slightly reorganized. The area surrounding Sydney within a few dozen kilometers was designated as the Federal Capital Territory.
This territory became an administrative unit equivalent to a state, with its highest official titled Governor-General, holding the same status and authority as any state governor.
New Zealand was also split into two states: North New Zealand (the North Island) and South New Zealand (the South Island).
Thus, the administrative and geographic scope of the Australia and New Zealand Federation was clearly defined. The federation consisted of three parts: the Principality of Australia, the Principality of New Zealand, and the Colony of New Guinea.
The Colony of New Guinea held a special status—it was directly subordinate to the royal household, its governor appointed by Arthur, and enjoyed independent administrative powers.
Government officials from Australia and New Zealand were elected by their respective lower houses. Together, these officials formed the Federal Upper House (Royal Council) and the Federal Lower House (House of Commons).
The Royal Council and House of Commons represented royal and civilian power, respectively. The former was composed of members appointed by Arthur as federal monarch, and the latter was elected throughout the federation (including the Colony of New Guinea). Eligible voters were legal federal citizens who had lived in any part of the federation for at least twenty years.
The new federation was a classic dual-state structure—Australia and New Zealand retained their independent governments but shared a unified federal government.
The current federal government was primarily composed of Australian officials, with only a few from New Zealand in relatively minor positions.
The Australian governmental election model was replicated in the federal system. If New Zealand officials were capable and confident, they could participate in the next federal elections—and potentially become Prime Minister.
To appease New Zealand's leadership, officials from both North and South New Zealand states were almost entirely selected from New Zealanders. They could choose their posts and remain until the next round of state elections.
This arrangement calmed any initial dissatisfaction. Most officials understood that they couldn't match the Australians' political clout—at least not yet.
Being part of a state government was enough to satisfy them. After all, they retained their original roles and gained new ones within the state governments.
The least-changed institutions were the Royal Council and House of Commons. These were essentially mergers of the Australian and New Zealand upper and lower houses.
As a result, the Royal Council now had over twenty members, and the House of Commons over 240 members.
All current parliamentarians from Australia and New Zealand were incorporated into the federal House of Commons.
At least until the next general election, they would retain their positions.
The House of Commons was composed of representatives elected from each state. Australia's six states held 198 seats, and New Zealand's two states 42 seats.
These 240 representatives formed the legislative body.
The House of Commons held legislative, supervisory, and impeachment powers over all non-cabinet officials. All cabinet positions were filled through elections within the House of Commons.
The Royal Council's members included current cabinet ministers, adult male royals, monarch-appointed members, colonial governors, and territory governors. Apart from royal family members, all other members served terms equivalent to their appointed office.
Arthur's appointed members served slightly longer, but no more than five years—unless reappointed, they would lose their seats after five years.
In other words, the Prime Minister and ministers, as well as governors of New Guinea and the capital territory, would automatically become members of the Royal Council.
If they ceased to hold those positions, they would also lose their council membership.
The Royal Council had broad powers: legislation, judiciary, oversight, impeachment, and veto power over House of Commons proposals.
Yes, the House of Commons held substantial authority—but its proposals required Royal Council approval to be enacted.
And Arthur effectively controlled the Royal Council.
He personally appointed the governors of colonies and the federal capital, ensuring their loyalty.
Though the House of Commons elected cabinet members, official appointments still required Arthur's confirmation.
Without Arthur's appointment, they were not legally considered cabinet members—neither in name nor in practice.
Thus, regardless of their ambitions, officials had to remain loyal to the monarchy-dominated federation, and above all, to Arthur himself.
Moreover, beyond the Royal Council, Arthur held one last trump card—the monarch's supreme authority.
With the establishment of the federation, the Australian Constitution was officially renamed the Federal Constitution, becoming the supreme law of the entire Australia and New Zealand Federation.
It granted the monarch absolute authority to dissolve the Royal Council and House of Commons, dismiss the cabinet, and appoint a temporary government entirely of his choosing under emergency conditions.
This meant Arthur could, in theory, dismantle all branches of government and rule as a complete autocrat during crises.
But such power was a last resort—using it would plunge the nation into chaos and destroy the monarchy's credibility.
In reality, Arthur, who held military power and immense popular support, had little to fear from such scenarios.
Not now, nor in the foreseeable future, was there likely to be any force within the federation capable of challenging royal authority. Arthur's confidence stemmed from his knowledge of future history.
(End of Chapter)
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