D.—No. 1.

are .above detailed, and specifically requesting assistance and co-operation in the large enterprize which the Colony of New Zealand is undertaking. And I do myself the honour of laying the whole subject before you for the information of His Grace the Duke of Newcastle, and for the purpose of seeking His Grace's advice and assistance in recommending that the necessary steps be taken for aiding the exertions and fulfilling the desires of the Government and people of the Colony. I have, Ac, Crosbie Ward. The Under Secretary of State for the Colonies, Colonial Office, Downing Street. No. 23. Downing Street, 12th September, 1863. Sir, — I am directed by the Duke of Newcastle to acknowledge the receipt of your letter of the 2nd inst., in which you state that the New Zealand Government are now engaged in making arrangements for the formation of Alonthly Steam Postal Communication, via Panama, between this country and the Colony. I am to acquaint you, in reply, that His Grace has expressed to the Lords Commissioners of the Treasury his wish that you may receive every assistance which Her Majesty's Government can properly give in carrying out what appears to His Grace to be a very useful project. I have, Ac, Frederick Rogers. Crosbie AVard. Esq. No. 24. Inter-Colonial Royal Mail Steam Packet Company (Limited), Offices, 41 Aloorgate Street. London, E.C., September 9th, 1863. My Dear Sir,— Tour esteemed favour of the 7th instant is to hand. The next meeting of the Board will take place on Friday the 18th, and they will then go fully into the whole question of the Panama line, and on the following Tuesday and Wednesday there will be a special meeting to come to & final decision, which will be communicated to you without a moment's delay. The apprehension that if the service is undertaken by other parties, our interests may materially suffer, has all along stimulated my anxiety that the I.E. Al. Company should endeavour to secure the contract. You will doubtless remember that very shortly after your arrival in this country, I threw out the suggestion that in the event of the Home Government refusing to give the required assistance, and your being unable to establish a Special Service for the entire distance, wo might arrange to run some of our boats between New Zealand and Panama. Such being the case, I think we may be regarded as the first in the field, and therefore I feel sure the claims of the I. R. M. Company will receive due consideration at your hands. The impression conveyed to my mind from our conversation the other day, was that if the Board made a formal offer on terms similar to those sketched out in my letter, there was every probability that it would be accepted, if all the details could be satisfactorily adjusted. I feel more than ever convinced that the ' P. Alfred,'' Auckland' and ' Otago ' could do the work well, and there would be no difficulty in providing bigger boats the moment the traffic became developed. May I ask whether you propose making a contract in conjunction with Air Hamilton, or intend the New Zealand Government in the first instance to undertake the payment of the entire subsidy ? T believe you said you would be in town again about the middle of next week. I should much like to work out with you all the various details before laying the matter before the Board, if possible. I have, Ac, James Woeley. The Honourable Crosbie Ward, Esq. P.S.—I don't see what there would be to prevent our commencing the Service in February or March. J. W.

19

ESTABLISHMENT OF A PANAMA MAIL SERVICE.