E.—No. G,

36. That all notices or directions which the Postmaster-General his officers agents or others are hereby authorized to give to the Company their officers servants or agents other than any notice of termination of this contract may at the option of the Postmaster-General his officers agents or others cither be delivered to the master of any of the said vessels or other officer or agent of the Company in the charge or management of any vessel employed in the performance of this agreement or left for the Company at their office or house of business in London or at their or any of their last known places of business or abode and any notices or directions so given or left shall bo binding on the Company Provided always that any notice of termination of this contract shall bo served on the Company their officers servants or agents at their office or last known office in London. 37. That the Lords Commissioners of the Admiralty for the time being shall at any time during the continuance of this agreement in case of great public emergency have power to purchase all or any of the said vessels at a valuation or to charter the same exclusively for Her Majesty's service at a rate of hire to be mutually fixed and agreed on by the said Commissioners and the Company but if any difference should at any time or times arise as to the amount of valuation or hire so to bo paid or as to the amount of damages consequent upon such purchase or hiring such difference shall be referred to two arbitrators or an umpire to be chosen respectively as aforesaid and that the said Commissioners in the case of hiring any such vessel shall return the same to the Company in the same state and condition as she was in at the time of any such hiring reasonable wear and tear excepted and if any difference should arise upon that point the same shall be settled in the same manner as the amount for the hiring is to be settled in case of difference. 38. That in case of such purchase or hire the service hereby agreed to be performed shall be performed by other vessels of the Company if the Company can in due and proper time furnish them such other vessels as to construction machinery equipment officers and crew to be subject to the like approval as other vessels employed under this agreement but in case the Company be unable to furnish such other vessels it shall be lawful for them to determine this agreement from the date of such purchase or hire but the same shall be considered as in force until the completion of any voyages then already undertaken. 39. That in the event of the Company being allowed by the Postmaster-General to continue to perform only a portion of the service there shall be paid to them such annual sum of money as shall be agreed upon by the Postmaster-General and the Company and in case of their differing as to the amount such difference shall be settled by two arbitrators or an umpire to be chosen respectively as aforesaid. 40. That any submission to arbitration in pursuance of this agreement shall be made a rule of any of Her Majesty's Courts of Record pursuant to the Statute in that case made and provided on the application of cither party. 41. That in pursuance of the provisions contained in the Act of Parliament passed in the twentysecond year of the reign of King George the Third intituled "An -Act for restraining any person concerned in any contract commission or agreement made for the public service from being elected or sitting and voting as a member of the House of Commons," no member of the House of Commons shall be admitted to any share or part of this agreement or to any benefit to arise therefrom. 42. That this agreement shall not be binding until it has lain upon the table of the House of Commons for one month without disapproval unless it be previously approved by a resolution of the said House of Commons. 43. And for the due and faithful performance of all and singular the covenants conditions provisos clauses articles and agreements hereinbefore contained and which on the part and behalf of the said Company their officers agents or servants are or ought to be observed performed fulfilled and kept the said Company do hereby bind themselves and their successors unto Her Majesty the Queen in the sum of £25000 sterling to be paid to Her Majesty Her heirs and successors by way of stipulated or ascertained damages hereby agreed upon between the said Postmaster-General and the said Company in case of the failure on the part of the Company in the execution of this contract or any part thereof. In witness whereof the said Edward John Lord Stanley of Alderley Her Majesty's PostmasterGeneral hath hereunto set his hand and seal and the said Peninsular and Oriental Steam Navigation Company have caused their common seal to be hereunto affixed the day and year first above written. The Stanley op Aldehley. (1.5.) "r^o" Compy. Signed sealed and delivered by the within-named Edward John Lord Stanley of Alderley Her Majesty's Postmaster-General in the presence of J. L. Dv Plat Tatxob, Private Secretary General Post Office. The common seal of the within-named Peninsular and Oriental Steam Navigation Company was hereunto affixed in the presence of P. D. Hadow, } Alex. Nairue, >• Directors. ¥m. H. Hall. ) C. W. Howell, Secretary. Z. Brooke, Solicitor's Department General Post Office.

8

CORRESPONDENCE RELATIVE TO THE