E.—No. 1

Secretary of tho Panama, New Zealand, and Australian Royal Mail Company (Limited.), intimating to me that the Postmaster-General had not received instructions from the Government of New Zealand in reference to the forwarding of letters, Ac, to the Australian Colonies via Panama, and to the rates of postage to bo levied thereon, and suggesting it would be advisable for me to communicate with the Colonial Office on the subject. I beg leave to claim your attention to copies of correspondence under mentioned :— May 9. Myself to Under Secretary for the Colonies. „ 11. Myself to Mr. AVorley. „ 17. Sir Frederick Rogers to myself, enclosing copy of letter from Mr. Hill, of 16th May. „ IS. Myself to Sir Frederick Rogers. „ 22. Sir Frederick Rogers to myself, with enclosure from Mr. Hill, of 21st May. Ariewing with much anxiety the loss it would entail in the event of the mails not being forwarded, and the unfavorable impression the circumstance might create against the service, I unhesitatingly acceded on behalf of the Government to the propositions of Mr. Cardwell and the Postmaster-General, although it was distinctly stated to the former that I had no authority from you to do so. The public notification by the Post Office has not yet appeared, but I am given to understand it will do so forthwith. Tho delay is owing to Treasury warrants having first to be issued. The rates of postage fixed, pending the receipt of your instructions, are, I trust, such as will meet with the approval of the Government, as well as the course I have adopted. I have, Ac., The Hon. the Colonial Secretary, John Mokhison. AVellington, New Zealand. Enclosure 1 in No. 33. Copy of a Letter from Mr. Jas. AVoeley to Mr. Moeeison. Panama, New Zealand, and Australian Royal Mail Company (Limited), Deae Sic,— Offices, 41, Moorgate Street, London, E.C, Bth May, 1806. I am desired to call your attention to the fact that the Post Office authorities here have not yet received any instructions from the New Zealand Government in reference to the forwarding of letters, Ac, to the Australian Colonies, via Panama, and to the rates of postage to be levied thereon. In order that proper mails for New Zealand and Australia may be made up for the packet sailing from Southampton with the AVest India and Pacific mails on the 2nd proximo, it is suggested that it might be advisable for you to communicate with the Colonial Office forthwith, intimating that the outward service between Panama, AVellington, and Sydney, will connect with the steamer leaving this country on the 2nd of each month ; and that it has been arranged for the first vessel to leave Panama on the 24th of June; and requesting the Colonial Secretary to convey that information to the PostmasterGeneral, and to direct that certain rates of postage, fixed by you, may be charged for letters, newspapers, Ac, on behalf of tho New Zealand Government. It is not the province of the Company to take any steps in this matter, it being entirely a question for arrangement between the Imperial and Colonial Governments ; but as the directors are anxious that no difficulty in regard to the despatch of the first mails by the new route should arise, they deemed it proper to address you on the subject. I have, Ac, John Morrison, Esq., Agent New Zealand Government. Jas. Woelet, Secretary. Enclosure 2 in No. 33. Mr. Moeeison to Sir F. Rogees. Office of the New Zealand Government Agency, Sic,— 3, Adelaide Place, King AVilliam Street, London, E.C, 9th May, 1866. I do myself the honor to inform you that the Secretary of the Panama, New- Zealand, and Australian Royal Mail Company (Limited), has intimated to me that no instructions are yet received by Her Majesty's Postmaster-General from the Government of New Zealand to forward mails to New Zealand and Australia by the Company's vessels, nor fixing the rates of postage to be levied; and unless instructions are given to the Post Office authorities to do so, the mails cannot be forwarded. By Mr. AVorley's letter, copy of which I herewith enclose, it will be seen that the contract for the postal service to New Zealand and Australia via Panama commences on the 2nd proximo. The mail expected to arrive about the 14th instant may bring instructions from the Government of New Zealand on the subject, yet as it is urgent that the Post Office authorities should notify without further delay when the service commences, and the scale of postage to be charged: I have to request, in the absence of instructions from the Colonial Government to the Post Office authorities and myself, that Mr. Cardwell will be pleased to instruct the Postmaster-General to take immediate steps to notify that proper mails for New Zealand and Australia via Panama will be made up for the packets sailing from Southampton with the West India and Pacific mails, on the 2nd of each month, and to direct him to fix the scale of postage to be charged on letters, newspapers, Ac. I have stated that lam without instructions from the Government of New Zealand. lam unable, therefore, to indicate to you what rates of postage the Government seek to establish, having regard, however, to the largo subsidy paid to the Panama, New Zealand, and Australian Royal Mail Company for the conveyance of the mails, and the high rates which arc charged by the Panama Railway Company for transit across the Isthmus, I submit that the rate should bo not less than one shilling for each letter weighing not more than half an ounce, and three-pence for each newspaper not exceeding in weight four ounces.

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THE PANAMA MAIL SERVICE.