tf.—a

4

Imperial contract, the Company's steamers employed under this agreement shall run to and from Colombo, instead of Point de Galle. 17. That the Postmaster-General shall have full power whenever and as often as he may deem it requisite to survey by any of his officers or agents all or any of the vessels employed and to be employed in the performance of this agreement, and hulls thereof, and the engines, machinery, furniture, tackle, apparel, stores, equipments, and the officers, engineers, and crew of every such vessel; and any defect or deficiency that may be discovered on any such survey shall be forthwith repaired or supplied by the Company; and if any of such vessels or any part thereof, or any engines, machinery, furniture, tackle, apparel, boats, stores, or equipments shall on any such survey be declared hy any of such officers or agents unseaworthy or not adapted to the service hereby agreed to be performed, every vessel which shall be disapproved of, or in which such deficiency or defect shall appear, shall be deemed insufficient for any service hereby agreed to be performed, and shall not be again employed in the conveyance of mails until such defect or deficiency has been repaired or supplied to the satisfaction of the Postmaster-General. 18. That the Company and all commanding and other officers of the vessels employed in the performance of this agreement, and all agents, seamen, and servants of the Company, shall at all times punctually attend to the orders and directions of the Postmaster-General, his officers or agents, as to the mode, time, and place of landing, delivering, and receiving mails. 19. That all and every the sums of money hereby stipulated to bo forfeited or paid by the Company unto Her Majesty, her heirs and successors, shall be considered as stipulated or ascertained damages, whether any damage or loss have or have not been sustained, and shall and may be retained and deducted by the Postmaster-General out of any moneys payable or which may thereafter become payable to the Company. 20. And in consideration of the due and faithful performance by the said Company of all the services hereby agreed to be by them performed, the said Postmaster-General doth hereby agree that there shall be paid at Melbourne to the said Company by Her Majesty's Government of Victoria, so long as the Company perform the voyages and services herein contracted to be performed, a sum of money after the rate of eighty-five thousand pounds per annum in equal quarterly payments on the first day of April, the first day of July, the first day of October, and the first day of January in each year, and shall accrue due from day to day ; and the said payments shall be received by the said Company as full compensation for all costs and expenses which they may incur or be put unto by reason or on account of all and singular the services hereby contracted to be performed, subject, however, to the abatement or deduction of any sums of money in respect of forfeitures which the said Company may have incurred, or to the addition of any sums in respect of premiums as the case may be, as herein provided. 21. The contractors shall have no claim to any postage nor to any payment on account thereof for mails carried under this contract except as herein provided. 22. That this agreement shall commence on and from the first day of February, one thousand eight hundred and eighty, and shall continue until the thirty-first day of January, one thousand eight hundred and eighty-eight, and shall then determine if the Postmaster-General shall by writing under his hand have given to the Company, or if the Company shall have given to the Postmaster-General, twenty-four calendar months' notice that this agreement shall so determine; but if neither the Post-master-General nor the Company shall give any such notice, this agreement shall continue in force after the thirty-first day of January, one thousand eight hundred and eightyr-eight, until the expiration of a twenty-four calendar months' notice in writing as aforesaid, which may be given by either of the said parties hereto to the other of them, and which last-mentioned notice may be given on or at any time after the thirty-first day of January, one thousand eight hundred and eighty-six. This agreement shall then determine accordingly, without prejudice nevertheless to any right of action or other proceeding which shall then have accrued to either party for any breach thereof. 23. And it is hereby further agreed that in case the Company shall fail to commence the performance of the services herein agreed to be by them performed on the first day of February, one thousand eight hundred and eighty, or the first day thereafter which the Postmaster-General may fix as the day of sailing, then and in such case the Company shall forfeit and pay unto Her Majesty, her heirs and successors, the sum of five hundred pounds, aud also the further sum of one hundred pounds for every successive period of twenty-four hours which shall elapse until the actual and bond fide commencement of the performance by the Company of the services herein agreed to be by them performed: Provided always that the total amount of the penalties to be incurred by the said Company by reason of such failures as aforesaid respectively shall not exceed the sum of fifteen thousand pounds. 24. That if on the determination of this agreement any vessel or vessels should have started or should start with the mails in conformity with this agreement, such voyage or voyages shall be continued and performed, aud the mails be delivered and received during the same, as if this agreement had remained in force with regard to any such vessels aud services ; and with respect to such vessels and services as last aforesaid, this agreement shall be considered as having terminated when such vessels and services shall have reached their port or place of destination and been performed. 25. It shall be lawful for the Postmaster-General, by writing under his hand, at anytime and from time to time to delegate any of the powers vested in him by virtue of this agreement to such person or persons as he may think fit. 26. The Company shall not convey in any vessel employed by them in pursuance of this agreement any nitro-glycerine or any other article which shall have been legally declared " specially dangerous " either in England or Victoria. 27. The Company shall undertake for themselves all arrangements relative to quarantine. 28. That all notices or directions which the Postmaster-General, his officers, agents, or others, are hereby authorized to give to tho Company, their officers, servants, or agents, other than any notice of termination of this contract, may, at the option of the Postmaster-General, either be delivered to the master of any of the said vessels or other officer or agent of the Company in the charge or management