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not met with any success. As I before informed you, the notice of the proposed bonus received wide publicity—it appeared in hundreds of papers. It produced several applications for employment from those who were willing to give their services, if the Government found the capital. Of course applications of this kind could not be entertained. Three or four people called to talk over the terms with me, with some idea of going into the undertaking, and finding the capital; but not one has entertained the project. I was in hopes that Mr. Heritage would do so. He is the solicitor with whom I was in negotiation when I was in England in 1875. The correspondence with him appears, I believe, in the printed papers. He had, lately, a long interview with me, in company with the same gentleman for whom he acted before ; and we almost agreed upon a telegram to be sent to you, the cost of which he was to defray. But I have since heard nothing from him on the subject, and I fear he does not entertain it. There is no disguising the fact that the terms proposed do not constitute a sufficient inducement. At the present cost of labour in New Zealand beet-root sugar fit for use cannot be prepared so cheaply as imported cane sugar. After a time, I believe, it would, but in the meanwhile every ton would leave a loss, if there was an excise duty, or if the duty on imported sugar were remitted. Without a guarantee against the imposition of an excise duty, I do not believe you will find capitalists ready to embark in the undertaking. The bonus proposed on the first sugar produced would save loss and pay interest on capital for a very short term only. I think the fact has been quite lost sight of that beet-root sugar is utterly unfit for use unless refined, and that a refinery involves the employment of a great deal of capital. The capital for producing beet-root sugar is comparatively little, but without a refinery the sugar would be useless, unless I am very much misinformed. I shall contiuue to do the best I can to give effect to your wishes. I have, &c, Julius Vogel, The Hon. the Minister for Immigration, AVellington. Agent-General.

No. 13. The Agent-General to the Hon. the Minister for Imjiigeatioit. Sib, — 7, Westminster Chambers, London, 10th September, 1878. In continuation of my previous reply to your letter of the 10th April, No. 75,* on the subject of a direct steam service to New Zealand, I have to report that I have been iv negotiation with several persons on the subject, and that I am disappointed I have not before this been able to communicate to you a direct proposal. Mr. Peter Denny and Mr. James Galbraith are preparing elaborate plans and estimates, but I regret to say lam not able to send the result out by this mail. Mr. Galbraith informs me he cannot be ready in time. I hope to be able to telegraph you the substance of the offer shortly. In company with Mr. Larnach I saw one of the partners in the extensive and wealthy firm of Messrs. Green, and he promised us to submit a proposal, but he has not yet done so. We also saw Mr. Stringer, and he led us to believe he would make a further communication, but he has not yet done so. I also saw Mr. Anderson, one of the partners iv Messrs. Anderson, Anderson, and Co., the founders of the Orient Line. He seemed inclined to telegraph to his brother, who is now in Melbourne, to go on to New Zealand to see you. You may be sure I will not lose sight of this matter. I cordially agree with your own estimate of its importance to New Zealand. Excepting Mr. Galbraith and Mr. Denny, the other gentlemen proposed using steamers already built, but Mr. Denny and Mr. Galbraith were of opinion that special steamers of not less tlian 5,000 or 0,000 tons should be built for the purpose. My own opinion is that a line could only be made successful by the use of large and suitable steamers, and I believe it is difficult to exaggerate the benefit to the colony of a really first-class direct and rapid steam communication. I have, &c, Julius Vogel, The Hon. the Minister for Immigration, Wellington. Agent-General.

No. 14 The Aoent-General to the Hon. the Minister for Immigration. Sir, — 7, Westminster Chambers, London, 12th September, 1878. I have the honor to acknowledge the receipt of your letter of 11th July, Xo. 125,t in answer to my letter of the 21st May No. 419,J relating to the class of emigrants selected from Scotland and from Ireland. I am sorry to find that I somewhat misapprehended the meaning of your letter, to which mine was a reply. I have, &c, Julius Yogel, The Hon. the Minister for Immigration, Wellington. Agent-General.

No. 15. The Agent-General to the Hon. the Minister for Immigration. Sir, — 7, Westminster Chambers, London, 12th September, 1878. I have the honor to acknowledge the receipt of your letter, No. 118, of sth July,§ enclosing copy of letter from Mr. Horace Bastings, Chairman of the Tuapeka County Council, also copies of * No. 11, D.-1., 1878. + No. 24, D.-1., 1878. J No. 19, D.-2., 1878. § No. 23, D.-1., 1878.