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be necessary, but they are not such as will interfere with your views in any material point. Mr. Wilson has full instructions from my Board, and he is now on his way to New Zealand. We have also been in communication with the Agent-General. He has informed you generally of the suggestions that have been made. It would be an advantage in this negotiation if my directors were enabled to confer with the Agent-General on points of detail, and if he received from you sufficient authority to assist them in their dealings with the financier who is prepared toadvance the requisite funds. I have, &c, .ZEneas E. McDonell, Secretary. The Hon. the Premier, Wellington, New Zealand.

No. 19. The General Manager, New Zealand Midland Bailway Company (Limited), to the Hon. the Premier. Wellington Club, Wellington, 19th June, 1894. Sir, — Midland Bailways : Proposals for a New Contract. Eeferring to our interview yesterday, I have the honour to submit, as you requested, the proposals of the company more in detail than those you received from London. The company has received an offer of the capital to finish and equip the line of railway between Patterson's Creek on the east, and Jacksons' on the west, of the main range of the South Island, and thus complete the connection between the east and west coasts. The new capital is to be £1,250,000, and is to be issued only for the specific purpose of connecting Jackson's with Patterson's Creek. It is intended that the stock of the new issue shall bear 4 per cent, interest. The following conditions are stipulated by the financiers : — (a). In exchange for the land at present locked up within the authorised area (not including lands still to be selected by the company) the company to receive New Zealand Government 3-|~ per-cent'. bonds amounting in value to £618,250, which bonds shall be placed in the hands of the Public Trustee of the colony, and will form a fund together with the annual 3|-per-cent. interest accruing thereon, out of which interest only will be paid to the holders of the new issue of capital. The Public Trustee to pay to the company in London each six months, until the fund is exhausted, a sum equal to the interest at 4 per cent, on £1,250,000, or, say, £25,000 half-yearly. All such interest payable to the company to be free from taxation. (b). Exemption of the railway from local taxation. (c). A maximum schedule of rates and fares to be agreed and attached to the new contract, which schedule may be modified from time to time with the consent of the company. (d). The construction of the Eeefton-Motueka Section of the railway to be the subject of future negotiations. (c). The Government to purchase the company's works at Belgrove at their cost price, namely, £60,000 ; or, if the Government so elect, the company are to finish the works to a point shown on the plans at the junction of Norris Gully and Motueka Valley, and when finished the Government will purchase the line at its cost price, say, £90,000. I have, &c, The New Zealand Midland Bailway Company (Limited).. Bobert Wilson, Engineer-in-Chief and General Manager. The Hon. the Premier, Wellington.

No. 20. The General Manager, Midland Bailway Company, to the Hon. the Premier, Wellington. Wellington Club, Wellington, June 25th, 1894. Sir, — Midland Bailway: Proposals for a New Contract. By last mail I received a communication from my directors to the effect that I was to inform you that time is a very important element in connection with the arrangements with the company's finances. I have, therefore, the honour to ask if you will be kind enough to let me know, approximately, when you anticipate the proposals of the company will come before the House. I have, &c, The New Zealand Midland Bailway Company (Limited). Bobert Wilson, Engineer-in-Chief and General Manager. The Hon. the Premier, Wellington.

No. 21. The Hon. the Premier, Wellington, to the Secretary, New Zealand Midland Bailway Company (Limited), London. Wellington, June 29, 1894. Sir, — Be New Zealand Midland Bailway. I have the honour to acknowledge the receipt of your letter of 19th ultimo, stating that your directors have received an offer of the amount necessary to complete the east to west coast route of the above-mentioned railway, and requesting that the Agent-General might be authorised to confer with you in dealing with the matter. In reply, I have to state that it would be inconvenient for negotiations to be carried on simultaneously in both England and New Zealand; and, as Mr. Wilson is already treating with the