NORTHERN RAILWAY—ADDINGTON TO RANGIORA.

D.—NO.BA,

5

to obtain the opinion of the Provincial Council on the matter at its session to be held next month, when a further communication will he made to you on the subject. I have, &c, Walter Kennaway, T. W. Maude, Esq., Secretary for Public Works. Secretary, Resident Minister's Office, Christchurch.

No. 3. Mr. Kennaway to Mr. Maude. Provincial Secretary's Office, Christchurch, Canterbury, New Zealand, Sir,— 27th March, 1872. In reference to my letter to you of the 20th instant, on the subject of the taking over of the Northern Railway by the Provincial Government, I am directed by his Honor the Superintendent to request that the lease may be prepared in accordance with the terms of your letter of the Bth instant, in order that it may be signed on the handing over of the line. I have, &c, Walter Kennaway, T. W. Maude, Esq., Provincial Secretary. Secretary, Resident Minister's Office.

No. 4. Mr. Maude to Mr. Kennaway. Office of the Resident Minister for the Middle Island, Sir,— Christchurch, 3rd April, 1872. I have the honor, by the direction of Mr. Reeves, to acknowledge severally the receipt of your letters of the 20th March, 1872, and 27th March, 1872, approving of terms as embodied in a memorandum transmitted with my letter of the 11th ultimo, for the transfer of the Great Northern Railway. The Crown Solicitor has received instructions to prepare a draft agreement for the taking over of the Railway, which will be submitted for the consideration of his Honor the Superintendent as soon as ready. I have, &c, Thomas Wm. Maude, Walter Kennaway, Esq., Christchurch. Secretary.

No. 5. Hon. Mr. Reeves to his Honor the Superintendent. Office of the Resident Minister for the Middle Island, Sir,— Christchurch, 25th April, 1872. Referring to the correspondence that has passed between the General and the Provincial Governments on the subject of the transfer of the Great Northern Railway, I have to inform your Honor that I am advised that considerable time must necessarily elapse before the agreement, mentioned in my letter of the 3rd instant, can be prepared ; and further, that practically little advantage would accrue from such an elaborate document, compared with the simple form in which the memorandum of terms now stands. Should your Honor concur, I am prepared, on the part of the General Government, at once to hand over the Northern Railway to the Superintendent, in terms of the memorandum already acknowledged by your Honor as the basis of the agreement for the transfer of the Railway. In doing so, I should wish to be understood that while the terms as set forth are held by me to be binding on the General Government, especially in view of the payment of the half rates mentioned in paragraphs 7 and 8. I must press the request already made that these paragraphs should be reconsidered. It is further understood that if the Provincial Government at any time is desirous that the terms of agreement should be reduced to a more formal shape the General Government will accede to its request. I have, &c, His Honor the Superintendent of Canterbury. W. Beeves.