3

D.-2

you wish insured against, in conjunction with an insurance in passage-money paid in advance, by the admission of a clause in the policy to cover all risk of loss legally incurred (except mortality), including the return«of the moiety of passage-money arising in consequence of the ship's return from any cause after sailing from Plymouth, and not covered by the liability of the shipowner under the Passenger Act. The policy covering passage-money advanced, and the risk contemplated by you, the underwriters would take at 225. Gd. per cent., and at this very low rate of premium, we think it likely you may desire to insure the advance made by you against the risk of the loss of the vessel, in such casualties as might arise in consequence of the ship's putting back. We are, &c, The Agent-General for New Zealand, Gr. D. Txsee AND Co. 7, Westminster Chambers, London.

No. 4. The Agent-General to the Hon. the Minister fob Immigration. Sir, — 7, Westminster Chambers, London, 18th July, 1878. In continuation of my letter No. 509, of 17th June,* in reply to yours of 16th April, 1878,f on the subject of a steam service to New Zealand, I have the honor to inform you that 1 requested Mr. Galhraith to see me as soon as he conveniently could; and, in response to this invitation, I have had a long interview with Mr. Galbraith and Mr. Peter Denny, whose name will be familiar to you as the well-known constructor and owner of steamships, and a large proprietor in the Albion and Union Companies. I enclose you the copy of a letter since received from Mr. Galbraith, by which you will see he and Mr. Denny are going into the whole matter, and I hope they will shortly make me proposals which I can communicate to you. In the course of our conversation it appeared that both Mr. Galbraith and Mr. Denny considered that steamers should be specially built for the purpose, of from four to five thousand tons ; that until you required the service for mail purposes there should be only six voyages a year ; that there should be besides a subsidy, or guarantee of a certain number of emigrants yearly. Mr. Galbraith and Mr. Denny both expressed the opinion that a considerable subsidy would be necessary for some time to come, as there would not be paying cargo sufficient, with the other sources of revenue, to pay the expenses, interest on money, and depreciation. I urged, of course, the constantly progressive prospects of the service, and pointed out that, even if no profits were made to commence with, the enterprise would yearly improve, and that if they did not occupy the field some one else would. On the whole, I. think Mr. Galbraith and Mr. Denny seriously entertain the project; indeed, this is proved by their coming specially from Scotland to see me, and I believe they will lay before me a proposal which I shall be able to submit to you. I have, &c., Julius Vogel, The Hon. the Minister for Immigration, Wellington. Agent-General.

Enclosure in No. 4. Mr. Galbbaith to the Agent-General. Dear Sir, — 8, Austin Friars, London, 17th July, 1878. Deferring to the interview which Mr. Denny and I have had with you on the subject of direct steam communication between this country and New Zealand, and the information we have derived from our conversation with you, and our perusal of the despatch addressed to you by the Hon. J. Macandrew on this matter, Mr. Denny and I will at once go into the details connected with the carrying out of such a project, in the view of being able to place a proposal before you. This we will endeavour to do with as lit tie delay as possible, but, as the steamers suitable for such employment will have to be designed, and the whole details in relation to the service well considered and thought out, it will be some little time ere we can lay anything definite before you. It is the desire equally of Mr. Denny and myself to heartily endeavour to carry out the views of the Government of New Zealand ou this important matter, as far as such can be done by us with prudence and safety. I have, &c, The Agent-General for New Zealand, Jas. Galbeaith. 7, Westminster Chambers, London.

No. 5. The Agest-Genekal to the Hon. the Minister for Immigbatiox. Sic, — 7, Westminster Chambers, London, Bth August, 1878. I have the honor to acknowledge the receipt of your letter of 15th June, No. 108, in which you request me to grant passages to such operatives as may be selected by the agent iv Britain of the Mosgiel Woollen Factory. In reply, I have to inform you that your instructions in the matter shall have due attention. I have, &c, The Hon. the Minister for Immigration, Wellington. Julius VoGEt, Agent-General.

No. 6. The Agent-General to the Hon. the Minister for Immigration. Sib, 7, "Westminster Chambers, London, 9th August, 1878. I have had a long and interesting conversation with Mr. Bayley, managing director of Brown, Bayley, and Dixon (Limited), a Company having very large manufacturing works in Sheffield. * No. 2, D.-2A., 1878. t No. 11, D.-l, 1878.