D.—No. 1

No. 14. 3, Adelaide Place, London Bridge, 19th April, 1563. Sir, — I have the honor to report that Air. E. Hamilton and I were received by the Right Honourable the Lord Stanley of Alderley, Her Majesty's Postmaster-General, on Tuesday last, the 14th instant, and had the honor of a lengthened interview with his Lordship on the subject of the proposed Postal communication with New Zealand and A ustralia via Panama. His Lordship entered minutely into the details of the proposal as laid before him in the printed papers previously submitted to Air. Gladstone, copies of which I forwarded for your information by last mail. We urged upon his Lordship the fact that a conditional promise had been given by the Imperial Government to establish the Panama Line of Packets; and we pointed out that the conditions then required are now substantially fulfilled in the increased subsidy guaranteed by the Colonies. We further urged the serious injury done to New Zealand by the want of a speedy and reliable means of communication with the United Kingdom, and demonstrated the undue expense to which the Colony is subjected under the present arrangement. His Lordship referred to the fact that the Colony of New South Wales would obtain no greater advantage, and the other Colonies of Australia less from the Panama Service in a Postal point of view, than is already derived from that via Suez ; and argued that therefore the interests of the Australian group of Colonies as a whole demanded that the second service, if one should be constructed, should follow the same route as the present. AVe replied, that the injury done to any other Colony by the adoption of the Panama Route would be trifling compared to that endured by New Zealand at present; and that a fair division of advantages would be arrived at only by the maintenance of both services. Further, that the additional security of an alternative route in cases of interruption on one of them, and the communication to be opened with other fields of commerce, gave a decided advantage to the Panama line as a second monthly service. His Lordship, after referring to matters of minor detail, stated that the question was chiefly one of finance, and as such to be dealt with by the Treasury. I have further to report that the Chancellor of the Exchequer has not yet informed us on what day he will grant us an interview. I have, Ac, Crosbie AVard. The Honorable the Colonial Secretary. New Zealand. No. 15. Treasury Chambers, 7th May, 1863. Sjr,— AVith reference to your letter of the 20th March last, addressed to the Chancellor of the Exchequer, on the subject of the proposal made by you on behalf of the New Zealand Government, and by Mr. E. Hamilton on behalf of the Government of New South Wales, namely, that Her Majesty's Government should co-operate with those Colonies in establishing a monthly mail to New Zealand and Australia via Panama, I am directed by the Lords Commissioners of Her Alajesty's Treasury to acquaint you that my Lords are unable to assist in the establishment of such a line, owing to the expense which it would entail on this country under the proposals made by you and Air. E. Hamilton. I am, Ac. F. Peel. Crosbie AVard, Esq., 3, Adelaide Place, London Bridge, B.C. No. 16. New Zealand Government Agency Offices, 3, Adelaide Place, London Bridge, E.C., 19th May, 1863. Sir — I have the honor to enclose for your information, a copy of a letter * which I have received from the Secretary to the Treasury on the subject of the co-operation of Her Alajesty's Government in the establishment of a Mail Service to New Zealand and Australia via Panama. I am, Ac, Crosbie Ward. The Honorable the Colonial Secretary, Auckland. (* No. 15 of these Papers.)

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