FURTHER PAPERS RELATIVE TO

E.—No. 3,

4

service should be undertaken without payment to the Company. They would at least require the same rate per mile as for the existing service. But, while the proposed deviation would directly involve an increase of some fifteen or twenty hours only at sea on each trip, it must be borne in mind that casual delays from making the land at night or in thick weather would not unfrequently be superadded to that disadvantage, so that the length of the mail voyage would often be increased by twenty-four hours, and occasionally by even a longer time. Looking to the importance of the interests in the other Colonies, and to the short interval for replies from New South Wales, even under existing circumstances, the Directors feel doubtful whether the detention of the mails, inseparable from the' proposed arrangement, would meet with public approval; and in these uncertainties on that point, thejr would be reluctant to act upon the suggestion contained in your letter. They will, however, communicate with their agents in Sydney and Melbourne, with a view to ascertain what may be the feeling upon the question, and will subsequently do themselves the honor of again addressing you on the subject. I am to add that although the detour to Kangaroo Island or Victor Harbour would involve the performance of a shorter additional mileage than the deviation to Holdfast Bay, and consequently retard the delivery of the mails in Melbourne and Sydney to a less extent, yet as the disadvantage would still be considerable, the Directors could not adopt either plan without ascertaining beforehand the opinion of the public of the Colonies. I have, &c, C. W. Howell, The Secretary, General Post Office. Secretary.

Sub-Enclosure 2 to Enclosure in No. 1. Mr. Howell to the Secretary, General Post Office. Peninsular and Oriental Steam Navigation Company, S IBj 122, Leadenhall Street, London, E.C., 22nd September, 1871. I have the honor to acknowledge the receipt of your letter of 12th instant, enclosing one dated 4th idem, addressed by the Agent-General for South Australia to the Colonial Office, in which Mr. Dutton states that the Colony of Victoria has expressed its acquiescence in the proposal of South Australia, that this Company's mail packets should call at Glenelg to land and receive the South Australian mails ; that New South "Wales will not object, provided the periods of arrival and departure from Sydney are not interfered with, and the Colony is not made liable for additional expenditure; and that South Australia is prepared to incur the necessary expense for increased mileage caused by the deviation from the existing contract. In reply, I am desired most respectfully to submit that the condition above set forth, viz., that the packets should deviate from their present voyage to an extent which, in the opinion of the Directors, would cause a delay of twenty-four hours, and yet be bound to the present dates of arrival at the terminal ports, involves an obligation of an unreasonable character. More particularly would this be the case upon the Australian line, where the weather is frequently too boisterous to admit of any packet, however powerful, making up for lost time. Nevertheless, the Directors, feeling anxious to meet, as far as possible, the interests of all the Colonies with regard to the Mail Service, and having recently placed larger vessels on the Australian line, are prepared to undertake the desired service as an experimental one, on the following conditions :— 1. That the service may be terminated at six months' notice by either side, if found to interfere with the general working of the line, or the postal interests of the more eastern Colonies. 2. That for the purpose of adjusting premiums and penalties, the contract time for the performance of the voyage in each direction shall be increased by twenty-four hours. 3. That the steamers shall not be bound to remain longer at Glenelg or King George's Sound than six hours. 4. That the payment for the proposed service shall be at the same mileage rate as under the present contract. The additional distance to be performed is 190 miles on each trip, or 4,940 miles per annum, which, at 19s. 1-^d. per mile, will amount to £4,724. With reference to the last-named, condition, the Directors feel bound to state that, in their opinion, the extra consumption of coals in driving and deviating the steamers, and other expenses, will certainly not be covered by the proposed contribution. Should the Postmaster-General see fit, in the general interests concerned, to enter into an arrangement based on these conditions, the Directors will do their utmost to maintain the interval between the arrivals at and departures from Sydney, prescribed in the Contract, and they have reason to hope their efforts will, as a rule, be successful. I have, &c, * C. W. Howell, The Secretary, General Post Office, London. Secretary.

Not published.

No. 2. Memorandum for His Excellency the Goveenoe. "With reference to the Despatch from the Eight Hon.'the Secretary of State for the Colonies, of the 20th October last, in which it is requested that the Government of South Australia may be informed whether this Government has any objection to offer to certain proposals of the Peninsular and Oriental Steam Navigation Company for their mail packets to call and deliver mails at Glenelg, the Postmaster-General has the honor to inform His Excellency that, as the proposed deviation of the

No. 1 of this series.