THE PANAMA ROUTE.

Press, Volume III, Issue 335, 26 November 1863, Page 3

THE PANAMA ROUTE.

The Olago Daily Times of the 23rd instant,

We learn that tho negotiations for a Panama

wniceirfre progressing favourably at the time the mail left. The arrangements had not yet been concluded with the Company with which negotiation ma first opened, chiefly because another rirol for colonial favour had started up in the lltpe of the Intercolonial Royal Mail Company (better known as the Coleman line.) It appears the cooptnies know that a largp stream of emigration to thm ihores from Canada and the States would i*t in in the event of a line being opened aero* tlie Pacific, and this view has induced a

MOfidanble diminution of the subsidy required

Th* Company with which arrangements were first attempted to be made now offers to give a service for £70,000, of which sum New Zealand is asked to guarantee £55,000, conditional on Xcw South W*Jw firing the Company £15,000, and a further Mm of £15,000 to Xew Zealand, thus reducing the sew Zealand contribution to £25,000. The Comptny will go on for a year on the guarantee of the imeller amount. The Intercolonial Compmy have made an offer to run a 10 knot service for £60,000 all told, unconditionally.

This latter offer is considered more satisfactory, Wto Colonial Government would probably get for this line the £13,000 per annum which the Hone Government now pays for the Intercolonial Company's service as fiir as Sydney, and it would, in the event of the present offer being accepted, he Bade a part of the contract that the existing Intercolonial lines should be resigned by the Company altogether, or reorganised under a separate contract of short duration on lower terms, and chiming, in with the Panama service. Under such ■to arrangement there would, from tho £60.000 •iked for the Pannma service, bo deducted £13,000 (the amount paid for existing Sydney service), ■boat £10,000 for postages receivable in England, having £37,000, and from this sum would have to be deducted whatever the other colonies may give. We should thus get a ten-knot service •cross the Pacific for what the Intercolonial service to Sydney or Melbourne now costs.

Tho choice between the two offers depends upon the character of the steamers used. The first offer is for large boats, to do the distance in 80 days with auxiliary power. The boats proposed for this service are good large vessels, the only fear being that their auxiliary power is not sufficient The other Company offers to do tho service in 25 days, but the steamers proposed to be used for the service are small and not so well suited for passengers, and doubts are felt as to their capacity fcr carrying coal for the distance.

Buch are the offers now under consideration, and we understand Sir. Crosbie Ward is likely to dose with one or other of them.