THE PANAMA SERVICE.

Lyttelton Times, Volume XXI, Issue 1192, 4 February 1864, Page 4

THE PANAMA SERVICE.

We understand that the preliminary agreement between the contracting parties is based upon the following terms: —A thirty days, service between Wellington and Panama, once a month each way, to be performed by vessels of 1250 tons and 250 horse-power, belonging to the Intercolonial Company. The cost of this to be £63,000 a-year. The intercolonial service to be paid for by the Imperial Government at the rate of £13,000 a-year, continuing the line on to Sydney, and to be performed by the same boats. Three interprovincial services are contracted for at a cost of £15,000. All other services to be stopped, unless the Colonial Government choose to carry them on. The whole cost of this service will not exceed by more than £7,000 a-year what we are now paying, even if New South Wales does not assist. With her help the change will, in fact, effect a saving. We hear that Prance has already offered to come to terms for a call at Tahiti, and, if they pay well, the request will be met. Her Majesty's Government are to carry the New Zealand mails to Colon free, and to account for all postages received except the inland rate of one penny.

The Intercolonial Company has lately introduced a fresh element into its direction, and is now known to be a perfectly sound concern in high credit; we think, therefore, that we are entitled to congratulate the colony oil an arrangement which, in England, is generally looked upon as most favorable for the future of New Zealand.