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Trusting that my proposals may meet with the favourable consideration of the Government of Queensland, and hoping shortly to have the honor of waiting upon you in person, — I have, &c, Alex. Fraseb. Enclosure 1 in No. 1. Memorandum from Mr. Alexander "Fraser (proposed Monthly Steam Service between Sydney and Batavia, via Moreton Bay and Torres Straits). A monthly steam service between Batavia and Sydney, via Torres Straits and Moreton Bay, and back, with liberty to call at Timor, Cape York, and one or more northern ports of Queensland. The steamers to be employed to be of a burthen of about 1,000 tons, and to be propelled at an average speed of nine knots per hour. The service to commence with January, 1872, or January, 1873, as may be determined by the several Governments. This line offers the quickest mail route between all the Australian Colonies and Java, Singapore, China, and Japan ; and opeii3 up to Australia the trade with those rich and important countries; with the Port of Sydney as the terminus of each voyage. The steamers would correspond at Singapore with the intermediate fortnightly mail steamer of the P. and 0. Company, on their London and China line, by which means the Eastern Colonies of Australia would obtain, as nearly as possible, a fortnightly postal communication with England, alternating with the present monthly service of the P. and 6. Company via Galle. The time occupied on the voyage between Batavia and Moreton Bay, exclusive of stoppages, would be about seventeen days, and between Batavia and Sydney about nineteen days. Allowing three days for the voyage between Batavia and Singapore, and three days more for stoppages at all ports, and following the Time-table of the P. and 0. Company from and to Singapore, the mails via Brindisi should be delivered at Moreton Bay from London in fifty-six, and at Sydney in fifty-eight days. Travellers with this lino would enjoy fine weather at all seasons, and at Batavia or Singapore might choose their route homewards by any of the numerous lines of steamers radiating from these ports, either via Galle or via Calcutta, through British India by rail to Bombay. The amount of annual subsidy required to establish and maintain the service is £37,000, of which the Government of Netherlands-India would contribute £10,000, if the Colonial Governments of Australia will provide the balance of £27,000. The undersigned is prepared to enter intft a contract with the Governments of New South Wales and Queensland, for establishing the proposed service on these terras and conditions, for a period of ten years, beginning with 1572 or 1873, subject to termination in five years by mutual consent, or on eighteen months' previous notice given by either of the contracting parties. The division of the part of the subsidy of £27,000 to be borne by the Australian Colonies, as regards the contribution of each Colony, to be left for mutual arrangement between the Governments of New South "Wales and Queensland, as well as all postal arrangements on the proposed lines with New Zealand, Tasmania, Victoria, and South Australia. Any agreement entered into on the footing of this memorandum with the several Governments interested only to be binding when the sanction has been obtained of the respective Parliaments in Australia and Holland. Sydney, Bth August, 1871. Alex. Feasee. Enclosure 2 in No. 1. (No. 15.) (Translation.) Extract from the Xtegitter of Resolutions of the Governor-General of Netherlands-India. Ijiparras, 21st May, 1871. Eead the letters. a., &c., Ac. 6. Of the Directors of the Internal Government of 16th May, 1871, No. 3,582, intimating that he had made Mr. Fraser verbally acquainted with the chief contents of the Ministerial Despatch above referred to, whereupon that gentleman had come to the resolution of again proceeding to Australia, entirely at his own expense, for the purpose of conferring with the several Governments there regarding the carrying out of a steam communication between Java and Australia. That for the success of his efforts, Mr. Fraser considers as indispensable the possession of a document from the Governor-General, embracing a communication such as is contained in this resolution. Heard the Council of Netherlands-India. Is approved and resolved: To inform Mr. A. Fraser, of Batavia, that the Indian Government take the greatest interest in the realization of the plan proposed by him for a steam communication between Java and Australia. And that the Minister of Colonies proposes to open a head in the Budget for the year 1872, for the " Costs of maintaining a regular steam communication with Australia," in order to prove that the Imperial Government also does not give up the idea of eventually being able to cooperate in obtaining a steam communication with Australia. Extract of this resolution shall be given to Mr. Fraser for his information. Agrees with the above Register. Stortenbekeb, Secretary of Government. (No. 2.) Memorandum from the Hon. A. H. Palmes upon the Proposals of Mr. Alexander Fbaseb. Memo.—Looking at the many great advantages to the Colony likely to accrue from a direct trade with Batavia, and, through her, with India, China, and the East, together with the facilities which would be 6—A. 3.