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the Albion Company free of cost, and, if I am not mistaken, much of the German emigration from Hamburg to the other colonies has been conducted in this way. lam not prepared to say how far this could be clone now as regards New Zealand. It is a subject, however, deserving of your consideration, and it would undoubtedly simplify matters if the Government had nothing to do with the business excepting to approve the immigrants, and pay so much a head on all immigrants landed and approved. There is a strong wish on the part of the people at Invercargill and Oamaru to have all emigrants for those districts landed at the Bluff and Oamaru direct; it is a wish to which the Government desire to give effect so far as this can be done without involving the colony in additional expense. As to this I shall addresss you more fully in a separate letter. The substance of this letter has been communicated to the New Zealand Shipping Company, Christchurch, and the Agent of the Albion Company, Dunedin. I have, &c., The Agent-General for New Zealand, London. J. Macandeew,

No. 10. The Hon. the Minister for Immigration to the Agent-General. Sir, —■ Immigration Office, Wellington, N.Z., sth April, 1878. Since writing to you on the 19th October last, I have carefully perused tho whole of the correspondence which has passed between the Government and yourself since your arrival in England in respect to the departmental arrangements of the Agency, and I may say that I feel somewhat to blame for not having communicated with you more fully on the subject than has yet been done. I would observe that the Government entirely concurs in the terms of my predecessor's letter to you of date, as.per margin (20th June, No. 122), with the important exception that, instead of limiting the expense of the Agency, as indicated by him, to £4,000 a year, we desire to reduce the cost so as not to exceed £2,000 to £2,500 a year, exclusive of Agent-General's salary and advertising expenses. In your letter of 20th August last you enter very fully into details, showing that the establishment cannot be reduced under £4,114 without seriously impairing its efficiency. In this I regret to say that the Government feels constrained to differ from you, and it is of opinion that the figures may be reduced to the amount above referred to —viz., £2,000 to £2,500 a year —without detriment to the service of the colony. It is obvious that, in curtailing the expenditure of the Agency within the limits now prescribed, you must be the best judge as to the particular directions in which services may be dispensed with. It is therefore deemed inexpedient to fetter you in any way in the exercise of your discretion ; at the same time I cannot but feel that the task now imposed upon you is an invidious one, and, if called upon to indicate the specific heads under which savings may be effected, I would point out those of "Private Secretary," "Secretary to Edinburgh Agency," "Despatching Officer," "Accountant;" indeed I may say that it is not clear to the Government that there is any necessity for a Secretary at £800 a year; at all events, if that office is to be continued, the duty of Private Secretary may well be combined with it. In expressing this opinion I desire it to be distinctly understood that the Government in no respect undervalues the importance of Mr. Kennaway's services. We cannot, however, disguise from ourselves the conviction that the Agency, looking at the amount of its business, is much overmanned, and that the circumstances of the colony imperatively demand retrenchment in this as in every other branch of tho public service. I feel assured that, when you reflect upon all the circumstances of the case, you cannot fail to recognize the expediency of the decision at which the Government has arrived in respect of the subject of this communication. I have, &c, The Agent-General for New Zealand, London. J. Macandrew.

No. 11. The Hon. the Minister for Immigration to the Agent-Geneeal. Sir, — Immigration Office, Wellington, N.Z., 16th April, 1878. Reverting to the subject of the passage of emigrants from Europe to New Zealand by steam, I now desire to draw your special attention to this question, with a view to your taking whatever action may be deemed most likely to influence those who may feel disposed to embark in such an enterprise. 1 feel persuaded that a payable, unbroken steam line between the mother country and this colony can be established, and that such line would do more towards attracting a steady stream of suitable emigrants to New Zealand than aught besides. When it is considered that the voyage would be accomplished in less than half the time now occupied by sailing vessels, I do not think that the conveyance of emigrants need cost much, if any, more than it has hitherto done. It is, in my opinion, to be regretted that, after the colonial immigration policy was initiated, advantage thereof was not taken towards the establishment of a direct steam line. Even a portion of the money which the colony has expended on immigration would have gone a long way towards subsidizing such a service. Indeed, it is not very clear to me that we ought not to have applied the large sum now paid annually towards the Californian line to the subsidizing of a direct line of steamers, of sufficient power and capacity to have combined both a postal and emigration service.