D.—No. 1

At latest, we must decide one way or other by noon on Saturday. 1 shall hope to hear from your Secretary before that time. I have. &c. Crosbie Wabb, Robert AVilson, Esqr., Director 1.C.R.A1. Company, 41 Moorgate Street, E.G. No. 33. Oriental Inland Steam Company, 9, Billiter Street, London, E.G., 14th October, 1863. My Dear Sir, — lam greatly obliged by your letter received yesterday. lam much afraid that clause 5 may introduce obstacles, because I have a strong conviction of the probability that profit in the working of the direct Panama service cannot be looked for at the outset of the undertaking. It is therefore essential, in my judgment, that the Company should be protected from the contingency of incurring serious loss on that line by such arrangements in regard to the inter-provincial services as would promise to break the force of such possible loss. On this account it is that I have pressed for a monopoly of inter-provincial services, and a mileage rate of 6s. Again, as AVellington is much out of the course to Sydney, would it not facilitate negotiations with Sydney and Queensland, as it would certainly facilitate communication with those colonies, if a northern port—as Auckland, or Port Fitzroy, in the Great Barrier Island —-were substituted for AVellington as the point at which the mails would be distributed by means of the inter-provincial steamers to the various Provinces of New Zealand. This arrangement would bring Sydney probably two days nearer Panama, and would give sufficient time, I imagine, for the return mails from the southern ports to meet the returning steamer. Practical men have remarked to me upon the greater inducement this would offer to the New South AVales and Queensland passengers to use the Panama route, amongst other reasons because it would relieve them from the rough weather and risks of the Cook's Straits passage. Will you kindly consider this point, and let me have a line if possible before Friday on it ? I am, Ac. Robert AVilsox. The Hon. Crosbie AVard, Postmaster-General of New Zealand, Ac. Ac. No. 34. Inter-Colonial Royal Alail Steam Packet Company (Limited), Offices, 41 Moorgate Street, London, E.G., October 16th, 1863. Sir, — With reference to the preliminary negotiations that have taken place respecting the proposed establishment by this Company of a Mail Service between Sydney, New Zealand, and Panama, and the re-adjustment of the present Mail Services performed by the Company, I have now the honour to inform you that the Board of Directors are prepared on the part of the Company to enter into a new contract embracing the performance of a monthly Alail Service between Sydney, New Zealand, and Panama, and vice versa; the continuance of the existing line between Sydney and Auckland, and the performance of the present and any additional inter-provincial services that may be required by the Government, on the following terms and conditions : — let. The new contract to take effect from the Ist .lanuary 1865, and to continue in force for five years from that period. 2nd — Panama Service. Ist. The Company to receive a subsidy of seventy-six thousand pounds (£76,000) per annum for twelve voyages a-year, between Sydney, Wellington, and Panama, and twelve voyages vice versa. 2nd. The Company to be allowed 30 days for the passage between AVellington and Panama, and 7 days for the passage between Wellington and Sydney. 3rd. The Company to provide three vessels of not less than 1250 tons builders' measurement, and 250 horse-power nominal, by the Ist January, 1865, and within twelve months from that time to supply a fourth steamer of similar capacity. 4th. If at the expiry of two or three years the Government should require the employment of vessels of larger dimensions than those specified above, then that a new contract shall be entered into by the Government with the Company for a further term of seven years, at an increased rate of subsidy, to be agreed upon. sth. That the boats to be employed shall each be fitted with a Post Office sorting room, with easy access to mail room, and shall carry a Post Office clerk and sorter, free of charge.

23

ESTABLISHMENT OF A PANAMA MAIL SEEVICE.