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No. 7. The Agent-General to the Hon. the Minister for Immigration. Sir, — 7, Westminster Chambers, London, 2nd July, 1879. I have the honor to transmit herewith copy of a correspondence which has taken place with Mr. Henry Jepson concerning certain propositions he makes with regard to the supply of steel rails and ironwork in New Zealand, and the establishment of a company in connection therewith. I have, &c., Julius Vogel, The Hon. the Minister for Immigration, Wellington. Agent-General.

Enclosure 1 in No. 7. Mr. Jepson to the Agent-General. 146, Cross Lane, Salford, 14th June, 1879. Sir,— The Supply 100,000 Tons Steel Rails in New Zealand. I beg leave to make certain propositions to you respecting this matter —namely, that the supply of these rails may be undertaken at the market price prevailing in England at the time each lot is delivered, less the cost of freight; that, as there are unforeseen risks and losses to be provided against in the purely speculative character of the undertaking, it is desirable that for the cost, loss of time in bringing out capital and labour to New Zealand as a permanent establishment (the New Zealand Government and colony would derive possibly all the benefit of the enterprise), a grant of land should be made in proportion to the amount of capital and labour, skill, &c., sent out by the firm obtaining the contract, to meet the drawbacks that may be encountered in labour, finance, and numerous other ways, owing to the crude condition of the science in relation to New Zealand, and to the imperfect knowledge pertaining thereto in this country. I beg to ask if you would consider a proposition to form a company in England, having at the head experts from all the principal iron-making districts in the kingdom, and to establish the firm under your own auspices; to obtain grants of land for the company according to the amount of capital subscribed, and the amount of skilled labour, &c, sent out—to each shareholder according to his shares. By those means the development of the iron industry may be assured, and the industrial and agricultural interest will both grow together and support each other. The establishment of the plant, being permanent, will need a future development of the demand for iron, and the agricultural interest will need a demand for the products of the soil and the farms, both of which will be furthered and developed by the other. The interested shareholders in the land and industries will do all they can to increase the population of the colony and send out labour to New Zealand instead of to the United States and other parts abroad, both to the industrial and farming establishments. It would be further inducing if the Government Avould undertake to purchase the whole requisite amount of rails at a market price for an indefinite time, and other ironwork of the company. Trusting you will give the proposition your consideration, 1 have, &c., Sir Julius Vogel, Agent-General for New Zealand. Henry Jepson. P.S.—This scheme would be both advantageous to New Zealand and England alike : it would insure the necessary capital and skill being got, and also a return and equivalent for the same.

Enclosure 2 in No. 7. Mr. Kennaway to Mr. Jepson. Sir, — 7, Westminster Chambers, London, 18th June, 1879. I am directed by the Agent-General to acknowledge the receipt of your letter of the 14th instant, and to inform you that no discretion is given to him in the matter to which you refer. Any proposition of the kind should be submitted to the Government, with references, to show the ability of the proposer to give effect to the proposal. The Agent-General cannot say, however, how such a proposition would be received. I have, &c, Walter Kennaway, Henry Jepson, Esq. Secretary.

Enclosure 3 in No. 7. Mr. Jepson to the Agent-General. Sir,— 14G, Cross Lane, Salford, 23rd June, 1879. I beg leave to respectfully request yon to forward my letter of the 14th instant for the consideration of the New Zealand Government. I have, &c., Sir Julius Vogel, Agent-General for New Zealand. Henry Jepson.

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