THE Wellington Independent Friday February 10, 1860. THE NEW PANAMA PROPOSAL.

Wellington Independent, Volume XV, Issue 1404, 10 February 1860, Page 3

THE Wellington Independent Friday February 10, 1860. THE NEW PANAMA PROPOSAL.

Every proceeding in connexion -with the Panama route possesses so much interest for New Zealand colonists, that we need

offer no apology for drawing the attention of our readers to the correspondence |at foot, published in the Sydney papers i received by the last mail. I The whole question relative to estab(lishing a service via Panama, having been' submitted by the Imperial Government to the House of Commons' Committee on contracts, it was generally looked upon as shelving all further steps for the next eighteen months ; and Mr. Merewether, the agent specially accredited to London by the N. S Wales Government, seeing that his continued presence was no longer likely to be of use, accordingly returned to Sydney. On the eve of his doing so, an offer to run a line of steamers between Panama and Sydney was made on such favourable terms, that despite the drawbacks to which it is manifestly subject, it would be uuwise on the part of the Government of that colony hastily to reject. The offer is most spirited; we hope the answer will be equally so. The line once opened, even if it were closed again in a few months, would be of such practical service in helping to decide the many points on which nautical and other practical men 'differ, as to tend most materially towards paving the permanent way. The Australasian and Pacific Company is a new one, and there is no doubt a strong prejudice against having anything to do with other than an old established line ; but this prejudice may be carried so far as to give the Royal Mail and the P. and 0. Companies power to establish a defiant monopoly. In this case, the Company ask for a moderate subsidy contingent on a satisfactory performance of the work — a demand which, while it may involve the Company in pecuniary loss, insures to the colonies full moneys worth for whatever they may be called upon to pay. The Company offer to commence carrying, within three months, a mail between Queenstown (Cove of Cork), and Sydney in 55 days, for an annnal payment from that colony of £75,000, to be increased to £82,)00 provided the other colonies (Victoria, Tasmania and New Zealand) should join — the Company taking its chance of getting a similar amount from the Home Government ; failing which, one-half of the postage is to be given them instead. The service is only to be temporary, say for twelve or eighteen months, when the Company will be prepared to enter into a permanent contract, increasing the speed to forty-five days, or even lower for an extra consideration. - What fate this offer will meet with we cannot anticipate. The Colonial Secretary of Sydney has opened a communication with the other colonies ; but we much doubt whether they will be prepared to take so decided a step as entering into negotiations independently of the British Government, and yet the delays heretofore imposed by that Government in a matter of so much importance to the Australian Colonies, and the length of time which will probably elapse before it will again consider it, would be sufficient reason why the colonies should take the bull by the horns and meet the offer of the Australasian and Pacific Company with a hearty acceptance.

Australasian and Pacific Company (limited,) 88, Cannon-street West (E. C), * London, September 17,* 1859. Sib, — I bare the honour to inform you that, in consequence of arrangements which have been provisionally made by the engineers of this company, we are enabled to propose an early commencement of the westward mail service to Australasia via the Isthmus of Central: America, if the Colonial Governments adopt the.condition we venture to submit. From advices received from Victoria we feel satisfied that the new Melbourne Parliament will give its co-operation in the establishment of the postal route by the Pacific, and we have instructed our agent in that colony to urge the prompt concurrence of the authorities in the necessary measures to sanction the immediate opening of the line. Assuming that the advantages of the Pacific route will recommend it for the conveyance ol Victorian letters,- and those of theothercolonies at least in the same proportion as the Suez route, which has unfortunately, an<J so soon fulfilled the prediction of our engineers, the proposition we have made to the southern colonies will, instead of increasing theresponsibiiity of your colony, bring it much within the limits origanally intended. We offer to effect a temporary service say for twelve or eighteen months, on the following terms:— At the expiration of three months from the date of the contract (indispensable for stocking the coal depots in the Pacific), we shall commence the service by vessels of guaranteed capacity and speed, performing the passage from Queenstown to Sydney and Melbourne simultaneously, in fifty five days ; dining that temporary service subject to the terms of our tender, reducing that time to forty-five days under the permanent contract. For tins we shall be satisfied with the guarantee of the colonial Governments fur £82,000, as represent ing their half of the tequisite subsidy; and we shall take our risk for the remainder, subject to the resolution of the Imperial Parliament on the question of subsidies now referred to the Committee on Postal and Telegraphic Contracts ; that is to say, that the half of the postal receipts, in the event of a subsidy being refusal by the home Government, shall be held answerable for the residue of our claim. As a condition essential to cany out ibis plan, it will be necessary for us to stipulate that we shall be at liberty to carry the mail from the Cove of Cork to the American Isthmus in cod neclion with auothcr postal sei vice we are about to effect under a foreign flaar; but thc'responsi bilily of our Company will extend over the | whole contract from Cork to Australia, Ou the subject of ihe Company's responsibility and the capability of the ships, we aie satisfied lliut the couUaut shall be vouiiitional

on our submitting satisfactory proof of both. I reinaiu, Sir, your most obedient servant Geo. Clark, Secretary protein. Edward Merewethei, Esq , 14, King-street, St. James's.

5, Cannoii-street, City, September 14th,* 1859 Sir, — I have to acknowledge the receipt ol your letter 61 the 18th* instant, submitting for the consideration of the colonial Governments, a proposition from the Australasian and Pacific Company to commence a temporary steam postal service to Australasia via the American Isthmus, upon certain conditions. In reply I have to infovm yon that lam not in a position tv treat with your Company, but I shall bring your proposal under the netice of the Govern inent I represent as soon as I return to Syndey. I leave England on Friday next, en. route to Australia, and I have to request that any further communication which you may make upon the subject of your offer, may be addressed to Edward Hamilton, Esq., at this office I am, Sir, your most obedient servant. (Signed) Edward 0, Merbw&ther. George Clark, Esq. 88, Cannon street West, London. \ Sir, — Owing 1 to arrangements which have been recently provisionally made by our eugineers, Mossis. Moore & Co., tins' company is now prcp.ircd to submit terms for the conveyance of mails to Sydney via the American Isthmus, whi'Wi, if approved by the G.-vern inent nf New South VVales, will 'obviate delay iv commencing this important line of communication. It is ceit'in that the Imperil! Government will give no decision on the subject till the Committee on Postal and Telegu:ph Contracts shall have repoitcd ; and as there arc other mallei 1 !; of priority, involving the tedious investigation of subnunne telegraph and subsisting contracts, it may be probable that the next session will close without any resolution on the question. As Mr. Morewether informed our. Mr. Moore that the New South Wales' Government was prepared to largely increase the in tended con tribution of £50,000, we assume, t\>v the s:i s -e of this pro forma proposal, that for an immediate opening of tiie line £25,000 would not be an exorbitant addition, to b.? equally increased in case the other colonies should contribute their qioia in proportion to the amount of their respective mails. This ine're <se would be with the view to diminish the c >mpany's risk when that of the col-.uy of N.-w South. VVales would be lightened by tlie coalition. We therefore propose, on a guarantee of £75,000 per annum, to undertake the conveyance of mails from Q.ieenstown to Sydney without regard to the delivery of mails at any other port, unless the colonial Governments shall give their adhesion to that of New South W.iles for a j >int interest in the service. Should the other colonies (Victoria, Tas rianiu, and New Zealand) j.<in in the arrangement, the contribution should be inuieated to £90,000 yearly, which would be again decreased to £82,000 iv case the British Government advanced the corresponding annual subsidy (making the total £164,000) of £82,000, of which this company takes the responsibility until the question of Imperial contribution is settled. One half of the postal receipts woula be telained by the Government of New South Wales as Against its liability on guarantee, and it is computed that there will be two millions of rates (an increase on last return — 1,368,000) at 9d. the rate, which would be fully justified by the regularity of the service, £87,500 would be received, leaving thus only £37,000 to he provided. The remaining half <»f the receipts, would be for this company, to cover the additional risk and cost of transit across the American Isthmus. At the expiration of eighteen months, the accelerated service would be commenced, to deliver the letters in forty five days, both ways, taking as the remuneration £164,000 per annum, one half to be chargeable to the colonies. But if the sum be augmented to £200,000 per annum, of which £100,000 should be provided by the colonial sb vention, we would undertake to convey the mails outwards in forty days, and homewards in forty-two days. The increase of speed has been "well considered, and our shipbuilders are prepared to guarantee the desired efficiency of our ships. In this we assume that we shall be allowed to make arrangements with foreign governments for the conveyance of their mails, but in no wise to prejudice the colonial mail service, which shall be made paramount to all other considerations; and subject to the sanction of the New South Wales Government; and also that we shall be allowed to carry the mails (rum Q"fiens- . town to the American Isthums in conjunction with foreign mails under a foreign fl ig. T tis will be obviously a neccessity under the circumstances of starting the line independently of a contract with the home authorities ; for, otherwise, the mails might be forced on the company as a ship's mail, for which the statutory remu neration would pass to the captains of the ships and be of no benefit either to the colonial Government or the Company, as nu compact with the captains can be valid against a legislative provision. Although we have computed the revenue on the subsisting rate would lead to a more rapid development of correspondence, and the company will be ready to assent to the corresponding risk of that reduction, without discussing any speculative result in seeming the early adhesion of the other colonies. Considering that no advance is required, that no engai>ement is to be made beyond the temporary contract for eighteen months and that without this temporary measure that period must inevitably elapse from the time the Cobden Comruittee shall deliver their judgment on thequestion of subsidy (which may or may not be favourable to this lint;) before the establishment of any effective service under a permanent contract, thus risking a period of from two to two and a half years, we trust that the Sydney Government will promptly accept this proposition, for there is no risk and no delay to prejudice the case if we do not satisfy the Government by opening the line effectually. They will be bound to the guarantee and to the stipulated term of service only so long as' it is performed in accordance with the conditions. Without doubt the Sydney Government will look beyond the narrow calculation of postal revenue in consideiing that the development of correspondence must be commensurate with increase of business, and that the ostensible sacrifice in this outlay will be met by enlarged income under General taxation iv Customs. In addition we hare to state that, as the company cohtomplates extensive demands for inter-comrauniuation by- tint route, they will be prepared to bind themselves to accept 75 per cent, of the mileage now to be gratited for the conveyance of mails fortnightly, when the traffic shall demand a semi-monthly departure, and 50 per cent of this additional mileage for mails

conveyed weekly in the same manner, when circumstances shall require it. 1 have the honor to be, &c, Georgk Clark, Secretary. Thn Hon. the Colonial Secretary, New South Wales. * * There is a confusion of dated here, sic ' in Sydney Momma Hti-ahl. — 'Ed. W. I.