D.—4a

2

The Colonial Teeasueee to the Agent-Geneeal. Wellington, 22nd July, 1885. Ask delegates if intended Government liable for more than ninety-seven, supposing receipts not equal working expenses.

The Colonial Teeasueee to the Agent-Geneeal. Wellington, 24th July, 1885. Tell Scott unless guarantee limited to total ninety-seven thousand, including working expenses, and unless excess receipts applied reduction guarantee, approval hopeless. Reply quickly.

The Agent-Geneeal to the Colonial Tbeasueee. London, 24th July, 1885. Delegates. Your three last. Firstly, reply on second question on third question. Eeport begins: Treasurer's message to-day means contribution not guaranteed as asked. Net amount receivable by syndicate must be ninety-seven, Government paying also any deficit in working expenses. All profits from land must belong to the syndicates, these profits being chief inducement investors. Payments under guarantee during twenty years recouped from profits line. Probably built three or more portions by separate issues, land being allocated here rateably, therefore necessary provide guarantee divided rateably, and failure one portion not entail forfeiture others. Saving clause present contract also necessary. Nothing less than these terms any use whatever. Eeport ends. Secondly, instruct whether shall, because Fell and Dodson return " Tongariro."

The Colonial Tbeasueeb to the Agent-Geneeal. Wellington, 7th August, 1885. Parliament refuses sanction delegates' agreement.

Authority: Geobge Didsbuet, Government Printer, Wellington.—lBBs.