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D-No. 1

New South Wales has decided upon its course of action j and the best course to adopt would probably be that of despatching a special envoy to Melbourne, with instructions to communicate with the Government there ; and should their views coincide with those of the Government of New South Wales, or be such as can be acceded to, the envoy can then proceed to Tasmania, while the Government of Victoria can send one to South Australia, for the purpose of seeking the concurrence of those Colonies, to the Governors of whom I can, in the meantime, address Despatches, embodying the propositions which, after a careful consideration, we may here determine upon. W. Denison. RESOLUTIONS OF LEGISLATIVE ASSEMBLY OF NEW SOUTH WALES, IN COMMITTEE OF SUPPLY. [Bih September, 1858.] This Committee having taken into consideration the Governor General's Message of 27 August, 1858, No. 26, respecting Steam Postal Communication, Resolves, — (1.) That a sum not exceeding £50,000 per annum be appropriated for ten years, towards defraying the cost of establishing Steam Postal Communication, monthly, between Sydney and Panama, under a Contract to be entered into by the Imperial Government and the Government of New South Wales, with parties willing and competent to undertake the service. (2.) That application be made to the Imperial Government to authorise the conveyance of the Mails for the Australasian Colonies, under the Contract already entered into for Steam Postal Communication between London and Aspinwall. (3.) That the Imperial Government be also requested to take the necessary steps for securing the conveyance of the Australian Mails, by the Railway, from Aspinwall to Panama. (4.) That the Colonies of Victoria, Tasmania, South Australia, and New Zealand, be also requested to co-operate with the Government of New South Wales, in undertaking to pay an equitable contribution for the advantages which may be afforded to them respectively by the establishment of such means of communication. (5.) That the Government of Victoria be invited to contract in a similar way for the establishment of a monthly Steam Postal Communication between Melbourne and Suez, or Point de Galle. (6.) That in the event of Victoria co-operating with New South Wales in defraying the cost of the Mail Contract via Panama, this Colony ought to co-operate with the Government of Victoria in paying an equitable amount for the conveyance of letters by the Point de Galle route. (7.) That the expense which may be incurred in establishing, either or both, of these Postal Services, should be borne in equal proportions by the Imperial Government and the Australian Colonies. (8.) That letters brought by either the Panama or Galle mail routes, be conveyed by each Colony for which they are directed, by such arrangement as may be respectively determined. COPY OP A DESPATCH FROM MR. STAFFORD TO MR. COWPER. New Zealand, Colonial Secretary's Office, Auckland, November Ist, 1858. Si*,— I have the honor to acknowledge the receipt of your Letter of the 17th September last, transmitting copies of the Minutes of the Executive Council of New South Wales, and also of the Resolutions which have since been adopted by the Legislative Assembly of that Colony, on the subject of the Steam Postal Service between the United Kingdom and the Australasian Colonies. In reply, I have to inform you, that the Government of New Zealand approves, generally, of the proposal conveyed in these papers, and will be happy to co-operate with the Australian Colonies in establishing efficient Steam Communication between Great Britain and Australasia. I observe, however, with reference to the proposed line via Panama, that it is not stated, whether it is intended that the Steamer on that line should call, both going and returning, at New Zealand, as was contemplated when Mr. Wetton's was made and agreed to. This condition would be necessary to enable New Zealand to receive an advantage from that route correspondent to the increased expenditure which it would entail. It is the more necessary that this should be stated as the amount of a contribution from New Zealand to any new Postal Service must of course depend on the advantage which it may receive. With respect to the amount of the subsidy to be borne by Great Britain and the Australasian Colonies respectively, it would appear preferable that an equal share of the whole amount should be paid by the Imperial Government, on the one part, and by the Colonial Governments on the other part, rather than that the former should pay for the mails to Point de Galle and Panama only, as by the latter arrangement Great Britain would, from being able to avail itself of the vessels of the Peninsular and Oriental, and Royal Mail Companies, be required to provide but a comparatively small portion cf

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