F.—6A.

1873. NEW ZEALAND.

ENGLISH MAIL SERVICES. (FURTHER PAPERS RELATING TO).

Presented to both Souses of the General Assembly by command of His Excellency.

No. 1. Copt of a Despatch from the Right Hon. the Earl of Kiubemey to Governor the Eight Hon. Sir James Fekgtjssoit, Bart., &c. Sin, — Downing Street, 13th June, 1873. Her Majesty's Government have had under their consideration the proceedings of the Conference held at Sydney in January last, with reference to postal communication between England and the Australasian Colonies. 2. When it became apparent from the telegrams conveying the Resolutions adopted by the majority of the Conference that there was a serious difference upon the question of the terminus of the line between Galle and Australia, Her Majesty's Government postponed their decision on the whole subject until the arrival by mail of full statements of the arguments relied upon by either side. 3. Upon examination of these arguments, it became clear that the question at issue was one in which Her Majesty's Government must decline to take any part, and I shall express no opinion upon the reasons adduced in favour of the adoption of either terminus. In order to make clear the position, of Her Majesty's Government in this matter, it is necessary to recur to the letter from the Treasury of 10th of August last, copy of which was transmitted in my Despatch of 4th September last. It was the object of the proposal contained in that letter to relieve Her Majesty's Government from all liability to be involved in the controversies between the different Colonies on the subject of the mail routes ; and in order, therefore, that the Imperial Government should not be a party to any future contract for the service between Galle and Australia, it was suggested that the Colonies should themselves in combination provide such service. On the separate question of a second monthly service a different condition was deemed advisable, and the Treasury offered to consider the question of an Imperial contribution to such second service if the Colonies should arrange for it conjointly, or by a substantial majority. 4. As the Colonies in Conference failed to agree upon a plan by which they should provide in combination for a service between Galle and Australia, and the difference which had arisen was one which Her Majesty's Government could not undertake to settle; while the time for making fresh arrangements in lieu of the service which is to terminate in December next was becoming short, I telegraphed to you on the 28th April as follows : — " The Colonies not being unanimous as to terms for the future monthly service, the offer by Her Majesty's Government of terms to be agreed to in combination has not been accepted. Sufficient time is not left before determination of contract for further consideration of permanent plan ; but P. and O. Company have offered to continue present service temporarily for two years at present rates, or for three years at reduction of £12,000 a year, steamers calling in both cases at Glenelg. We request concurrence of Colony in extension of contract for either two or three years as Her Majesty's Government may decide, but with intimation of Colony's preference. Reply by telegraph." 5. To this New South Wales, South Australia, and Western Australia replied that they agreed, and preferred the extension of the contract for three years; Queensland preferred the extension of the contract for two years; and Victoria declined to entertain the proposal. 6. On learning that there was again an absence of unanimity on the question of the temporary extension of the existing contract, Her Majesty's Government came to the determination that it would be expedient to adopt the arrangement which I explained to you in my telegram of 16th May, and the details of which are fully given in the correspondence, copy of which is enclosed herewith ; and I trust that it will be felt that this arrangement is liberal and fair to all parties. I am informed that the Colony of Victoria has already concluded a contract for a service from Galle to Melbourne, and that Queensland has also contracted for a line from Singapore to Brisbane. In the event of a service from San Francisco to Australia or New Zealand being established, its maintenance will be greatly assisted through the assumption by Her Majesty's Government of the whole cost of the transit of postal matter between this country and San Francisco. I have, &c, Governor the Right Hon. Sir James Eergusson, Bart., &c. Kimbebley.

Enclosure No. 1. Mr. Lingen to the Under Seceetaey of State, Colonial Office. Sir, — Treasury Chambers, 16th May, 1873. With, reference to your letter of the 13th instant, I am directed by the Lords Commissioners of Her Majesty's Treasury to transmit to you, to be laid before Lord Kimberley, the enclosed copy of