ENGLISH MAIL SERVICES, (PAPERS RELATING TO).

Appendix to the Journals of the House of Representatives, 1873 Session I, F-06

F.—6.

1873. NEW ZEALAND.

ENGLISH MAIL SERVICES, (PAPERS RELATING TO).

Presented to loth Houses of the General Assembly by command of His Excellency.

No. 1. Dr. Featherston to the Hon. the Colonial Secretary. 7, Westminster Chambers, Victoria Street, Westminster, S.W., Sir,— 6th September, 1872. I have the honor to enclose you copy letter from Earl Kimberley, covering copy letter from the Lords Commissioners of her Majesty's Treasury, respecting the mail service between England and the Australasian Colonies. I have not yet replied to Earl Kimberley respecting the proposals made by their Lordships. I have, &c., The Hon. the Colonial Secretary, Wellington, N.Z. I. E. Featheeston.

Enclosure in No. 1. Mr. E. G-. Herbert to the Agent-General for New Zealand Sin, — Downing Street, 20th August, 1872. With reference to previous correspondence respecting the mail service between this country and the Australasian Colonies, I am directed by the Earl of Kimberley to transmit to you a copy of a letter which has been received from the Lords Commissioners of the Treasury. Lord Kimberley will be glad to receive any remarks which you may desire to make on their Lordships' proposals in time to enable him to communicate with the Governors of the Colonies concerned, by the Brindisi mail on the 6th September. I am, &c, The Agent General for New Zealand. Robert G. Herbert. Sub-Enclosure to Enclosure in No. 1. Mr. Stronge to Mr. Herbert. Sir, — Treasury Chambers, 14th August, 1872. . lam commanded by the Lords Commissioners of Her Majesty's Treasury to request that you will state to the Earl of Kimberley, with reference to the correspondence that has recently taken place relative to the packet service between this country and the Australian Colonies and New Zealand, that my Lords have given this subject their attentive consideration. My Lords would observe that the several Colonies (with the exception of West Australia) having requested that an end should be put to the contract under which the Peninsular and Oriental Steam Navigation Company now convey the Australian mails between Point de Galle and Sydney, the necessary notice has been given to the Company, and the contract will expire at the end of next year, 1873. It therefore becomes necessary to determine in whab manner and by what route the postal communication should be maintained when the contract in question conies to an end. The several routes which have been suggested are, — 1. The present route via Suez and Point de Galle. 2. As an alternative route the route via San Francisco ; and 3. (Incidentally), the route via the Cape of Good Hope. The advantages, however, attendant upon the present route appear to my Lords to be so conclusive that they are decidedly of opinion that it should not be changed. The advantages are, first, that it is the shortest; and secondly, that by making use of the vessels under contract with Her Majesty's Government for the India and China service as far as Point de Galle, the carriage of the Australian mails is provided for a considerable portion of the distance over which they have to be conveyed. As several of the Australian Colonies have on repeated occasions complained of the manner in which the service between Point de Galle and Australia has been performed, and so much difficulty has hitherto been experienced by the Home Government in providing a service satisfactory to the I—F. 6.

F.—6

2

Colonies, my Lords have come to the conclusion that it is not advisable that the Imperial Government should any longer be parties to any contract for the service between Point de Galle and Australia, but that it would be better that the Colonies should, at the expiration of the present contract, themselves, in combination, provide such service, leaving it to the Imperial Government to provide for the conveyance of the mails between England and Point de Galle. A considerable sum has hitherto been contributed by the Australian Colonies and New Zealand towards the expense of the conveyance of their mails between this country and Port de Galle. My Lords propose, at the termination of the present Point de Galle and Australian contract, to relieve the Colonies from any payment on this account, and to undertake on the part of the Imperial Government, so long as the present contract for the India and China Mail Service is in existence—that is, until the 31st January, 1880—to convey the Colonial mails between England and Point de Galle and vice versa free of all charge to the Colonies, on the Colonies in combination providing an efficient line of packets fitted at Point de Galle to the Suez and China packets, to run once every four weeks (or once every fortnight, whichever the Colonies may deem most essential to their, own interest), between Point do Galle and whatever port or ports in Australia the Colonies may themselves consider most expedient, and vice versa; and my Lords will be prepared to contribute a sum not exceeding one-half of the expense of a four-weekly service between Point de Galle and the Australian Colonies and New Zealand (in the event of the latter Colony becoming a party to the arrangement), subject, however to the distinct limitation that the contribution to be made on the part of the Imperial Government in any one year shall in no case exceed £40,000, and on the understanding that the packets shall call at King George's Sound to land and embark the West Australian mails —that Colony being, however, called upon to pay her share, in proportion to her correspondence, towards the expense of the packet service between Point do Galle and Australia; and in tho event of the Colonies arranging conjointly, or by a substantial majority, for a fortnightly service, my Lords will be prepared to entertain tho question of further contribution. But this undertaking is given upon the express condition that any second service towards which the Imperial Government may render assistance is alternative with the other — i.e., that there shall be sufficient interval between the arrival and departure of the steamers for the purposes of correspondence. As it appears from the letter from the Colonial Office, dated the 24th ultimo, and its enclosures, that it is the wish of the Government of Queensland that the correspondence of that Colony shall be conveyed once every four weeks via Torres' Straits, my Lords have no objection, on the part of the Imperial Government, to conveying such correspondence between England and Singapore free of all charge, but they are not prepared to make any contribution towards a service between Singapore and Brisbane, which must be left to the Colony to provide. My Lords have only to state, in conclusion, that the arrangement at present in force as regards thedivision of the postage on the mail matter conveyed between this country and the Australian Colonies, should not be disturbed. I have, &c, E. G. W. Herbert, Esq., Colonial Office. Charles N. Steonge.

No. 2. Memorandum for His Excellency the Governor. The Postmaster-General has the honor to report upon the circular letter from the Earl of Kimberley, dated September 4th, 1872, and the enclosed copy of a letter from the Lords Commissioners of the Treasury, containing proposals for a new Postal Service with the Australasian Colonies on the termination of the present contract with the Pemnsular and Oriental Steam Navigation Company at the end of the year 1873 ; His Excellency having requested that he might be informed of the views of the Government on their Lordships' proposals. The Postmaster-General recommends that His Excellency should inform the Secretary of Stale that the New Zealand Government will willingly co-operate with the Governments of the other Colonies, in order to endeavour to give effect to the proposals of the Lords of the Treasury. The Postmater-Gencral thinks it necessary to express the regret which the Government of Now Zealand feel that support to the Californian Service—established and carried on by New Zealand at considerable cost and amidst great difficulties—is not promised in the letter of the Lords Commissioners of the Treasury. He supposes, however, that that letter was intended to deal more particularly with the question of the future service via Suez, and that the consideration of the support to be given by the Imperial Government to the Californian Service, is still an open question. Julius Vogel. Wellington, 11th November, 1872.

No. 3. Copt of a Despatch from the Eight Hon. the Earl of Kimberley to Governor Sir G-. P. Bowen, G.C.M.G. (Circular.) Sib,— Downing Street, 22nd January, 1873. With refcrerncc to my Circular Despatch of the 4th September last, transmitting proposals respecting the mail service between this country and Australia after the termination of the existing contract with the Peninsular and Oriental Steam Navigation Company, I transmit to you, in order to obviate any misapprehension which may have arisen with respect to the extra postage levied in the

3

P.—6.

Colonies on correspondence and newspapers sent by way of Brindisi, a copy of a letter which has been received through the Lords Commissioners of the Treasury from the General Post Office. I have, &c, The Officer Administering the Government Kimbeeley. of New Zealand.

Enclosure in No. 3. Mr. Tilley to the Seceetaet to the Treasury. Sib,— General Post Office, 13th January, 1873. I am directed by the Postmaster-General to acknowledge the receipt of your letter of the 10th instant, enclosing copies of two letters from the Colonial Office, covering Despatches from the Governments of Victoria and South Australia on the subject of the proposals made to the Australian Colonies in the Earl of Kimberley's Despatch of the 4th September last, with reference to the arrangements to be adopted for the Mail Service between this country and Australia after the termination of the existing contract with the Peninsular and Oriental Steam Navigation Company. In the Memorandum of Mr. Langton addressed to the Governor of Victoria, which expresses the views of his Government, it is stated that the proposal of the Imperial Government is to carry the mails between London and Galle free o£ all charge, whether for conveyance by special packets between Dover and Calais or Egyptian transit rate, and to contribute one moiety, not to exceed the sum of £40,000 per annum, towards the cost of the service between Galle and Australia. Mr. Monsell is under the impression that this Memorandum correctly describes the intention of the Treasury, so far as relates to the whole cost of conveying the mails by sea between London and Point de Galle, and to the sum paid for Egyptian transit. But, in using the term "free of all charge," he hopes that there is no misunderstanding in Melbourne with regard to the additional postage of 3d. per half-ounce which is levied on all letters, and of 2d. each on all papers, sent via Brindisi. This additional postage represents the sum actually paid by this Depai'tment to the French and Italian Post Offices for the land carriage of that portion of the mails which is forwarded by the route of Brindisi. On the homeward letters and papers the additional postage is levied in the Colonies ; and being so levied should, of course, be accounted for to this office in the letter-bill accompanying each mail, as it has hitherto been accounted for. The transit postage in question has never appeared in the financial statements between the Mother Country and the Colonies, but has always been settled between the Post Offices. The concluding paragraph of the letter from the Treasury to the Colonial Office, of the 14th August last, states : — " My Lords have only to state, in conclusion, that the arrangement at present in force as regards the division of the postage on the mail matter conveyed between this country and the Australian Colonies should not be disturbed," and it is probable, therefore, that the matter is rightly understood in the Colonies; but to prevent any difficulty hereafter, Mr. Monsell would beg to suggest whether it may not be advisable that the Colonial Office should send a telegram in words to the following effect to Melbourne, specially pointing out that the additional postage levied on letters, &c, sent via Brindisi must continue to be accounted for by the Colonial to the Imperial Post Office: — " Treasury views as to Mail Service correctly stated in Mr. Langton's Memorandum, November 5, but additional postage collected on correspondence via Brindisi must continue to be accounted for." I have, &c, JonN Tiliet.

No. 4. The Hon. J. Yogel and the Hon. W. H. Eetnolds to the Agent-General. Sic — Sydney, New South Wales, 25th February, 1873. "We have the honor to forward to you by this mail, via Brindisi, a printed copy of the Report of the Intercolonial Conference at Sydney, the Minutes of Proceedings, and several Appendices, containing documents laid before the Conference. "We have also forwarded to you a copy of the Sydney Morning Herald of this day, containing reports of the proceedings in the New South Wales Parliament respecting the Suez Service Terminus; and a letter from Mr. Vogel to the Editor, upon the mail question generally. We have the honor to enclose copy of a letter from the Colonial Secretary of New South Wales, in reply to our letter of the 30th January, respecting the Califoruian Service; and wo also enclose a copy of our reply. These several documents will afford you full information as to the decisions of the Conference, and as to questions which have been discussed since the Conference terminated its labours. "We need only add, that, finding it impossible to come to any arrangements with New South Wales with respect to the Californian Service, we were compelled to take our own course. That course was to support Victoria ou the question of the Suez Service Terminus, as the only means of securing that Victoria should take part in the service ; and failing which it would not have been safe for New Zealand to undertake to contribute to its cost. But, as you will gather from our letter of the 30th January, before referred to, wo also offered to New South Wales most liberal terms respecting the Califoinian Service.

F.—6

Up to the present time, the Government of New South Wales have not shown any disposition to come into the arrangement we have proposed; but we shall exhaust every means of conciliation. We have to request that, after you have sufficiently studied the papers bearing on the subject, you will press upon the Imperial Government to grant a subsidy to the New Zealand service. We are, and have been, willing that the Californian steamers shall run on to Australia ; and we have proved our desire to co-operate with the Governments of those Colonies, with the view of arranging for such an extension. A great injustice would therefore be done to New Zealand if a subsidy were not granted. It will not in any sense be the fault of New Zealand if New South Wales docs not co-operate ; and we feel that the conditions laid down by the Conference have been sufficiently complied with to make it reasonable that Great Britain should grant to the New Zealand Service a subsidy to the amount recommended by the Conference. We have, &c, JITLITTS VoGEL. Wxliiam H. Eetnolds.

No. 5. Earl Kimberlet to the Goteenoe of New Zealand. (Telegram.) 28th April, 1873. The Colonies not being unanimous as to terms for monthly service offered by Her Majesty's Government of terms to be agreed to in combination has not accepted. Sufficient time is not left before termination of contract for further consideration of permanent plan, but P. and 0. Company have offered to continue present service temporarily for two years at present rates, or for three years at reduction of £12,000 a year. Steamers calling in both cases at Glenelg. We request concurrence of Colony in extension of contract for either two or three years, Her Majesty's Government may decide, but with intimation of Colonies' preference. Reply by telegraph. KIMBEBLEY.

No. G. The Acting Governor, South Australia, to the Acting Governor, New Zealand. (Telegram.) Adelaide, 24th May, 1873. Have received from Lord Kimbcrley telegram as follows : —" May 1G: Our proposal for temporary prolongation of present mail service not being unanimously accepted, is withdrawn. Wo have determined to carry mails to and from Galle, Singapore, and San Francisco, and this country free of charge. If service is established by any one or more Colonies from Galle, we will pay to each Colony contributing to such service postage received on outward mail letters conveyed by such route to the Colony so contributing, less transit charges and inland British postage, provided steamer touch each wav at port in Western Australia. Similar payment will be made in case of establishment of service from Singapore or from San Francisco. Arrangement to continue for five years." U. D. Hanson, Administrator.

No. 7. Memoeandum for His Excellency the Acting Goveenoe. Ministers have the honor to report to His Excellency the Acting G-overnor that they have given careful consideration to the cablegram from the Eight Hon. the Secretary of State for the Colonies, dated the 28th April; and also to the copy of cablegram from the Secretary of State, dated May 16th, forwarded by the Acting Governor of South Australia, upon the subject of mail services. It is not necessary to reply by cable to either of the two cablegrams. A cable reply would have been necessary to the first, but that the proposal it makes is recalled by the second cablegram. In explanation of Ministers not having moved His Excellency to reply to the first cablegram before the second was received, they have to state that, having acted in concert with the other Colonies at the request of the Secretary of State, they deemed it their duty, before replying to a new proposition, to ascertain what course those Colonies intended to take in consequence of the Secretary of State's cablegram. Now that the proposal in the first cablegram is withdrawn, it would answer no purpose to comment upon it or to indicate what answer the Ministers would have advised His Excellency to make to it. But since it superseded the proposal previously made, and which, at the Secretary of State's request, was considered by all the Australasian Colonies in Conference, it seems necessary that Ministers should express their opinion on the proceedings of the New Zealand Representatives at the Conference, in order that by their silence there would not be reason to suppose that they acquiesced in the necessity of the offer, which was under the consideration of the Conference, being withdrawn. It is to be regretted that the several Governments were not made aware that the offer of the Lords Commissioners of the Treasury depended upon the Colonies unanimously agreeing to the conditions of the Mail Service. The decision at which the Conference arrived was a much nearer approach to unanimity than might have been anticipated. The great point of dispute was whether the terminus of the Suez Service was to be at Sydney or Melbourne. The representatives of Victoria and New South Wales were so anxious to have the terminus as to determine that without it they would not respectively, for their Colonies, support the service.

4

E.—6

5

The representatives of New Zealand, in coming to a decision as to which terminus they would support, were mainly guided by two considerations. Ist. That if Victoria withdrew from the service, the cost to the other Colonies would be largely increased. The subjoined statement of the number of letters between the various Colonies and Great Britain (which is believed to be approximately correct), shows how large an interest Victoria has in the mail question, and how comparatively small is that of New South "Wales. Even the New Zealand correspondence, although the Colony has little over half the population, largely exceeds that of New South Wales. The Government of New South Wales wore very anxious for the terminus, but they were not prepared to offer an indemnity to the other Colonies in the case of Victoria withdrawing from the service. The Representatives of New Zealand, therefore, had no other course open but to agree to a service to which Victoria was willing to be a party. Any other course might have entailed very heavy pecuniary responsibilities upon New Zealand, which, next to Victoria, has the largest correspondence with the United Kingdom. As to whether or not Victoria acted in an arbitrary manner is perhaps not of much moment. Still it is but justice to that Colony to say that it asserted the control to which its large pecuniary contribution seemed to entitle it. The mails would be delivered in Melbourne or Sydney equally under either plan. The residents of the two cities respectively wanted the large expenditure and the convenience to passengers and freight incidental to the terminus, and it was natural that the largest contributor should gain the contest. As long as Great Britain cared to control the service, she did so in virtue of her large contribution ; and it is a significant proof of the preponderating interest Victoria has in the matter, that under the latest proposal of the Secretary of State that each Colony should receive its own outward postages, Victoria alone is in a position to contract for the service. The second considerai ion which had weight with the New Zealand representatives was, that in the absence of a spare steamer the service was more reliable with Melbourne than with Sydney as the terminus. Formerly the Peninsular and Oriental Company docked their vessels at Sydney, and the incoming steamer was not required to leave for more than a month. For some reason not explained the Company discontinued this practice, and the steamer arriving in Sydney has to leave in so few days that in case of repairs being required the time is exceedingly short to make them. The distance from Bombay, where the vessels are docked, to Australia is such that the longer the time the vessels have in port on their arrival in the Colonies, the better is their chance of effecting repairs, and obviously the 1,200 additional miles of stormy navigation between Melbourne and Sydney and back materially increase the chances of irregularity. In respect to the latest proposal of the Secretary of State, Ministers have to express their satisfaction with it. It substantially yields what New Zealand has asked before with reference to the San Francisco Service. It is to be regretted that only by reason of the quarrels of other Colonies can New Zealand obtain assent to its modest requests. Ministers respectfully urge the claim of the Colony to payment during the last three and a half years for the San Francisco Service on the principle now conceded. Wellington, 7th June, 1873. Julius Vogel.

Enclosure in No. 7. STATEMENT showing the TOTAL NUMBER of LETTERS RECEIVED from and DESPATCHED to the UNITED KINGDOM by the under-mentioned Colonies, from 1863 to 1872.

No. 8. The Hon. J. G-. Feancis to the Hon. the Colonial Seceetaet. Sir,— Chief Secretary's Office, Melbourne, 12th May, 1873. I have the honor to forward copy of a telegram transmitted on the Bth instant to the AgentGeneral for Victoria, acquainting him that this Colony declines to accept Lord Kimberley's proposal for extending the existing contract with the Peninsular and Oriental Company on the terms his Lordship has suggested. I have, &c, The Hon. the Colonial Secretary, Wellington. J. G-. Francis.

Colonies. 1863. 1864. 1865. 1866. 1867. 1868. 1869. 1870. 1871. 1872. Gross Total. Victoria 1,210,384 1,216,108 1,187,643 1,094,668 1,076,799 965,193 964,624 990,164 1,012,860 982,600 10,701,043 Sew South Wales ... 479,996 461,136 461,047 475,302 468,494 390,355 313,937 414,446 404,240 394,830 4,263,783 South Australia 251,423 267,711 216,727 224,695 208,610 197,880 1,618,982 N>w Zealand 643,616 764,206 756,197 750,245 683,978 659,699 558,701 565,913 588,024 567,061 6,528,640 rasmania 82,176 79,421 75,410 70,438 71,206 70,678 70,340 519,669 Queensland 242,124 251,032 203,635 175,153 178,351 176,225 179,445 1,405,965 iVest Australia 34,644 35,442 35,693 35,490 35,774 34,248 33,375 244,666 2,338,996 2,441,450 2,404,887 2,930,582 2,862,877 2,567,712 2,338,038 2,477,790 2,494,885 2,425,531 25,282,748

P.—G

6

Enclosure in No. 8. The Hon. J. G. Feancis to Mr. Michie. (Telegram.) Bth May, 1873. Infobji Lord Kimberley, in reply to telegram of 2Sth April, this Government was informed in Treasury letter of August last that Imperial Government would no longer be parties to contract for service Galle to Australia, and in telegram November 2nd was requested to confer with other Colonies on new arrangement. Six out of seven Colonies represented at Conference authorized Victoria to make contract Galle to Melbourne. Having accepted in good faith proposal of Imperial Government, and having no hope that now or at any future time absolute unanimity can be secured, this Government declines to entertain Lord Kimbcrley's new proposal, and cannot refrain from expressing regret that if unanimity was deemed indispensable, the Colonies were not so informed at outset. J. G. Feancis.

No. 9. , The Hon. J. G. Feancis to the Hon. tho Colonial Seceetaet. Sic, — Chief Secretary's Office, Melbourne, 4th Juno, 1873. Adverting to previous correspondence, I do myself the honor to inform you that this Government has made a provisional agreement with the Peninsular and Oriental Steam Navigation Company for the carriage of the mails between Galle and Melbourne, calling at King George's Sound, and at Glenelg if desired, for a period of seven years, at £90,000 per annum. We are anxious that all the other Colonies should share in the advantages of this contract, and are prepared to carry out the arrangement as to branch services and distribution of cost, entered into at the late Intercolonial Conference. I shall be glad of a reply at your earliest convenience. I have, &c, The Hon. the Colonial Secretary, Wellington, N.Z. J. G. Francis.

No. 10. The Hon. W. IT. Betnolds to the Hon. the Chief Seceetaby, Melbourne. Sib,— Colonial Secretary's Office, Wellington, 10th June, 1873. I have the honor to acknowledge the receipt of your letter of the 4th instant, in which you state that tho Victorian Government has made a provisional agreement with the Peninsular and Oriental Steam Navigation Company for the carriage of the mails between Galle and Melbourne, calling at King George's Sound, and at Glenelg if desired, for a period of seven years, at £90,000 per annum. In reply, I have to thank you for that communication, and to state that this Government agrees to join in the above contract on the terms determined at tho late Intercolonial Conference held in Sydney. I have, &c, The Hon. the Chief Secretary, Melbourne. William H. Reynolds.

No. 11. The Hon. Mr. Vooel to the Hon. the Chief Seceetaey, Victoria. Sib, — General Post Office, Wellington, 2nd August, 1873. Since the receipt of your last official communication, offering to New Zealand the use of the Suez Service upon the terms agreed to at the Conference, and the reply of this Government accepting the same, I have gathered from the negotiations which have taken place, that consequent upon the withdrawal of New South Wales and Queensland from the use of the Suez Service, you feel that by carrying out the proposed Suez Service on the basis indicated in your letter, Victoria would be exposed to the risk of New Zealand's contribution, on the correspondence basis, not even covering the cost of the branch service, not to speak of a contribution in aid of Victoria's payment to the contractors for the Suez line. Such a contingency, however, could only arise in case New Zealand committed itself to a Californian Service. As long as New Zealand continued to send its letters by way of Suez, there would be no risk that there would be wanting a considerable contribution towards the cost of the main line, as well as the whole cost of the branch service, supposing the correspondence basis to be taken for the apportionment of the cost. I understand that what you propose is, that there shall be a double arrangement —Victoria to have the use of the Californian Service subsidized by New Zealand, and New Zealand to have the use of the Suez Service subsidized by Victoria. That New Zealand should at its own cost provide the branch service to connect with the Galle line, and should undertake that its contribution towards the cost of that line should not be less than £5,000 a year. On the other hand, I understand that Victoria is willing to contribute a rateable proportion, based upon correspondence, of the cost of the Californian Service, and to undertake that that proportion shall be not less than £15,000 a year. It would be idle, after all that has taken place, to discuss whether your proposals are liberal or fair : I have to say, however, that it is not probable we shall be able to arrange a Californian Service, making connections with Victoria, on such terms as would justify our accepting from Victoria a contribution of £15,000 only. We desire, therefore, not positively to decline your offer, but to consider it as separate

7

]?.—0

from the arrangement to be made respecting the Suez Service, and as not preventing us, should wo find such a course desirable, from making other arrangements with respect to a Californian Service. But as to the Suez Service, we have no objection to agree to what we understand you to require, and what we consider fair, namely —That our contribution in return for the use of the Suez Service shall be not less than is sufficient to cover the cost of the branch service and to leave £5,000 a year towards the cost of the main line. It would be well at once to fix the cost of the branch service ; and we suggest for your consideration that it should bo fixed at £5,000 a year —or if it costs more, New Zealand to pay the excess. The agreement between the two Colonies would then stand thus : —£5,000 a year for the branch service to be added to the cost of the main line ; New Zealand to share in the cost in proportion to the correspondence sent by the line, but undertaking that its contribution should be not less than £10,000 a year, being £5,000 for the branch service and £5,000 towards the main line. It was decided at the Conference that the basis of contribution should be the number of letters sent home from each Colony. Although the circumstances are somewhat altered through the Imperial Government not making a direct contribution towards the cost, I am inclined to think it would bo better to adhero to the Conference basis, as rendering it easier to make up the amounts promptly; but if you prefer that the number of letters out and home should be taken together as the basis, we should be happy to entertain a proposal to that effect. It is of course to be understood that each Colony is to retain its own postages, and to receive from the Imperial Government those collected in England, as offered by Lord Kimborley ; any sums received from New South Wales and Queensland to be distributed pro rata amongst all the contributing Colonies. I have, &c, The Hon. the Chief Secretary, Victoria. Julius Vogel.

No. 12. Mr. Eussell to the Hon. J. Vogel. (Telegram.) New Yoek, 21st June, 1873.—Pending Samuel's arrival, negotiations with Scott Burnside adjourned to London. I leave for London to-morrow. Two services proposed. One, the boats to proceed to Sydney from Auckland, subsidy £65,000. Other service, boats from San Francisco to Navigators and Sydney. Branch boat same size from Navigators to New Zealand. On the following month, main boat to go via Navigators to New Zealand coastwise, and the branch boat to go from the Navigators to Sydney. They call this a " fork " service. Price, seventy thousand. New special boats to be built for both services. Twelve special services, twelve knots, meanwhile, chartered boats. Better service most likely secure Sydney co-operation.

I^__^^___^________ BUS SELL. No. 13. Estimated Cost or Proposed Mail Seetice. If New Zealand mails carried by way of Victoria only:— Estimated proportion payable, including cost of Branch Service to Middle £ Island, and Wellington ... ... ... ... ... 30,000 Branch Service, Wellington to Auckland ... ... ... ... 3,000 £33,000 Less estimated postages ... ... ... ... ... ... 15,000 Estimated cost ... ... ... ... ... ... ...£lB,OOO New South Wales offer by Branch Service to Kandavau: — £ Minimum payment on account of Suez Service ... ... ... 10,000 Branch Service from New Zealand to Kandavau ... ... ... 15,000 £25,000 Estimated postages on letters by Suez, receivable by New Zealand* ... 3,000 Estimated cost ... ... ... ... ... ... ...£22,000 Mr. Eussell's proposal, supposing line via San Francisco proceed to Melbourne instead of Sydney : — Dr. £ £ Minimum payment on account of Suez line ... ... 10,000 Cost of proposed San Francisco Service ... ... ... 70,000 80,000 Or. Contribution by Victoria to proposed Californian Service ... 15,000 Estimated postages ... ... ... ... ... 15,000 30,000 . Estimated cost ... ... ... ... ... £50,000 * This will leave £12,000, which New South Wales would receive on account of postages for carrying New Zealand Mails between England and Kandavau.

i\—c.

8

Instead of connecting at Kandavau, a Califoruian Service from New Zealand to Honolulu, or through to San Francisco :— £ Supposed cost of Service ... ... ... ... .., ... 40,000 Minimum payment to Suez Service ... ... ... ... ... 10,000 £50,000 Loss estimated postages ... ... ... ... ... ... 15,000 Estimated cost ... ... ... ... ... ...£35,000 By Authority : Ulukuk Didsbubi', Government Printer, Wellington.—lB73. Price Qd.']