E.—No 1

CORRESPONDENCE WITH THE SECRETARY OP STATE. No. 1. Copy of a Despatch from Governor Sir Geoege Geet, X.C.8., to the Eight Honorable Edwaed Caedwell, M.P. Sic, — . Government House, Wellington, 7th September, 1866. In my Despatch No. 72, of the 24th of July last, I reported the complete and successful establishment of a line of steamers between Panama and Australia, by which a new and short line of postal communication was opened between Great Britain, New Zealand, and New South "Wales. 2. I have since received a letter from the General Manager of the Panama New Zealand and Australian Mail Company representing that they are most anxious to place a small depot of coal and stores at some suitable island in the Pacific, and that they aro of opinion that the Galapagos Islands, or the Island of Opara, would bo the most convenient and suitable point for the proposed purpose, but that they require further information regarding these islands, and, if practicable, a survey of the latter island. 3. I have the honor to enclose a copy of the letter from the General Manager of the Company, and I should feel much obliged to you if you would request the Lords Commissioners of the Admiralty to supply the information which the Company require. I have, &c, The Right Honorable Edward Cardwell, M.P., &c. G. Ghet.

Enclosure in No. 1. Copy of a Letter from H. B. Be> tso>~, Esq., to Governor Sir Geoeoe Geet, K.C.B. Panama New Zealand and Australian Boyal Mail Company (Limited), Sydney, Melbourne, and New Zealand. Sib,— "Wellington, 4th August, 1866. I have the honor to acquaint you that my Directors are most anxious to place a small depot of coal and stores at some suitable island in the Pacific for the accommodation of their steam ships employed in the mail service between this port and Panama. After much consideration they are of opinion that Galapagos or Opara are the most convenient. As only one station is required, I think Opara the best; and your Excellency would confer a very great favour on the Company if you could procure for us a survey and information of this island. Its position, according to Eaper, is latitude 27 ° 38' south, longitude 1U ° 13' west. I have, Ac, H. B. Bensox, His Excellency Sir George Grey, X.C.8., &c. General Manager.

No. 2. Copy of a Despatch from Lord Caiwaeyok to His Excellency Sir Geoege Geet, K.C.B. Sic, — Downing Street, 11th December, 1866. I have the honor to acknowledge the receipt of your Despatch No. 87, of the 7th September last, forwarding a copy of a letter addressed to you by the General Manager of the Panama New Zealand and Australian Mail Company, in which ho represents the desire of the Company to establish a depot for coal and stores either at the Galapagos Islands, or the Island of Opara ; and requests your assistance in procuring for the Company a survey of the latter island. I have to request that you will inform the Directors that Her Majesty's Government cannot detach a man-of-war to make inquiries at Opara, but that it would seem possible for the Company, without much inconvenience, to cause one of their own steamers to touch at the island, and ascertain both its capabilities as regards the Company's requirements, and also whether or not it is at present inhabited, and, if so, by what number of persons, and of what race, and under what jurisdiction. You wiil be pleased at the same time to inform the Directors that they are not to infer from this communication that Her Majesty's Government would be prepared to establish a Colony at Opara, or to render it a subject of any expense to the British Treasury. I have, <&c., Governor Sir George Grey, X.C.8., &c. Caenabtox.

No. 3. Copy of a Despatch from Lord Caenaevon to His Excellency Sir Geoege Grey, K.C.B. Slß,— Downing Street, 11th October, 1866. I have tlie honor to transmit to you for your own information and for that of your Eesponsible Advisers a copy of a letter from the Postmaster-General stating that in compliance with the request of the Postmaster-General in New Zealand, the necessary measures have been taken for authorizing the assimilation of the rates of postage charged upon correspondence sent to New Zealand by the route of

FURTHER PAPERS RELATIVE TO THE PANAMA MAIL SERVICE.