[copy.] Downing Street, 30th November, 1848

New Zealander, Volume 5, Issue 316, 9 June 1849, Page 3 (Supplement)

[copy.] Downing Street, 30th November, 1848

Sir— With reference to previous correspondence on the subject, I transmit to you herewith for your information and guidance the enclosed copy of a letter from the Assistant Secretary to the Board of Treasury intimating that, adverting to the advantages which may be anticipated from the acceleration of the Communication with the Australian Colonies by the establishment of steam conveyance, and looking to the aid which may be expected from the colonies towards the expence of the undertaking, the Lords Commissioners are of opinion that they will be justified in accepting a tender made by the India and Australia Steam Packet Company for the conveyance of the mails between Singapore and Sydney in three vessels ot two hundred horse power for £26,000 per annum for a period of not lest than six years, and that they have intimated to the Board of Admiralty their approval of such contract being concluded, provided that Board are satisfied of the ability of the Company to perform the service. You will further perceive that it has been intimated to the Board or Admiralty that as the colony of Ntw South Wales has already agreed to grant of £6,000 per annum for throe years in aid of that icrvice it will not ! bo necessary tg nitrite provision for. tiie navy estimates

for more than £20,000 on account of the contract. You will, therefore, take the necessary measures for the payment from time into the Commiisar/at Cheat of such sums as will accrue from the grant in question, in order that they may be applied towards the expcnce of the contract. I have further te acquaint you that a proposal for establishing steam communication with Australia via the Cape of Good Ilot-e ; still under the consideration of Her Majesty's Go.u-nment. I have, &c.| (SigncJ) Grey. Governor Sir C. A. Fitzroy.