D. —No. 1

No. 28. Oriental Inland Steam Company (Limited), 9, Billiter Street, London, E.C., 3rd October 1863. Mx Dear Sir, — Circumstances have arisen since. Lord C. Hamilton despatched the proposition relative to Panama service to you which render it necessary for me to ask the favour of your postponing the consideration of it officially until there has been time for the Board as a whole to consider it more formally. This need not delay the matter many days. lam exceedinglv sorrv to give you this inconvenience. I have, Ac, Robert AVilson. Crosbie AVard, Esq., Postmaster-General of New Zealand, Ac, Ac, Ac No. 2<). London, sth October, 1863. Sir — I had the honour to address you on the 15th August last, submitting for the consideration of the Lords of the Treasury certain questions relating to the construction of a Mail Service between the United Kingdom and New Zealand by way of Panama, which is about to be undertaken by the Colony. The negotiations with the intending Contractors are now nearly complete, but before proceeding further, I am very desirous to obtain the decision of their Lordships on the points submitted, and shall therefore be much obliged for as early a reply to my letter as may be possible. I have, Ac, Crosbie Ward. The Right Honourable F. Peel, AI.P., Ac, Ac, Ac, Treasury, Whitehall. No. ,30. Inter-Colonial R. M. Steam Packet Company (Limited). Offices, 41, Aloorgate Street, London, E.G., October 6, 1863. My Dear Sir, — The error in the distance having entirely disconcerted all our calculations, I fear we shall not be able to do anything more in the matter until the next Board meeting, appointed for Friday the 16th instant, when the whole question will be gone into. The aspect of the affair is certainly very much changed in other respects also, as the Board had no idea that w re should be expected to give up all our present subsidies, and to accept greatly reduced rates all round, in one case (the Auckland line), even less than half. I think the Board will hardly be prepared to agree to the terms proposed, as a subsidy of £87,000 a year would be too little for all the services ; and seeing the P. and 0. Company give merely a nine or nine and a half knot service over a distance of 5,400 knots for £134,600 a-year, it would not be prudent for us to undertake a ten knot service, where the distance is 2,200 miles greater, for a subsidy barely half that amount. It was understood that the new rate for the Inter-Provincial Services would not be much less than the present average rate, which is about seven shillings and sixpence per mile; but five shillings per mile, is thirty per cent. less. > I have taken a copy of the outline of proposed new Contract, and therefore return the original as desired. I have, Ac, James AVorley. The Honble. Crosbie AVard, Esq. No. 31. Oriental Inland Steam Company (Limited), 9, Billiter Street, London, E.C., 12th October, 1863. My Dear Sir, — I regret extremely that it was not in my power to write before 4 p.m. on Saturday, as I had hoped to have done, a diversity of pressing occupation hindering me.

21

ESTABLISHMENT OF A PANAMA MAIL SERVICE.