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E.—la.

I believe there is no great demand at the present time for mechanics or labourers in the colony, and I did not propose to recommend such; but the proposed arrangement would permit of my sending out any class of persons whom the Government from time to time might consider required in the colony. With the exception of persons possessing capital, and persons having a special and practical knowledge of farming, the only other class which it seems to me the colony at present requires is capable domestic servants, and these, unless otherwise instructed, I should propose to encourage. It seems to me that the proposal made by the company might be accepted with great benefit to the colony, and I hope the Government will see its way to give me the necessary instructions. I have, &c, The Hon. the Premier, Wellington. W. B. Perceval.

Enclosure in No. 4. Sir,— 138, Leadenhall Street, London, E.C, 19th December, 1892. Since the company addressed to you their letter of the 29th September last, they have carefully considered whether they can extend the offer which they then made of giving some concession from their published rates of passage-money, in any special cases which may be recommended by you. It is understood, in the first place, that, provided the company take passengers approved by you by their Direct steamers to New Zealand at reduced rates, you will extensively advertise in the United Kingdom to that effect. And under these conditions, and provided also that the passengers thus approved are for a period of twelve months sent only through this company, I beg to inform you that the rates for passengers will be reduced, as follows, viz. : Saloon passengers, special terms, taking each case on its merits ; second-class, from £36 15s. to £28 per adult; third-class, from £16 16s. to £13 per adult. In addition to the above it is proposed to have an " intermediate " class, which would afford a larger amount of space per adult than is made available for third-class, and in which enclosed cabins and a more liberal dietary scale would be provided, and for this class of accommodation the passage rate will be £18 18s. to those passengers only who are approved by yourself. With regard to the space for " intermediate " passengers, the company are prepared to allot 25ft. per adult, it being remembered that under the Passengers Act the minimum space is 15ft. only ; and as regards the dietary scale the details could, no doubt, be satisfactorily arranged after a conference with yourself. In further reference to this matter, I would further add that the company are prepared to contribute towards the expense of advertising to the extent of 5 per cent, of the amount of passagemoney received by them on account of the passengers approved by yourself. It is also to be understood that the company will pay a commission of not less than 5 per cent, to you, or your shipping agent, to cover agency charges. Awaiting your approval of the proposals contained herein, I remain, &c, Thomas Johnson, Director, New Zealand Shipping Company. The Agent-General for New Zealand.

No. 5. (Telegram from the Agent-General to the Premier.) 6th January, 1893. Shipping Company offers reduced fares 25 per cent, passengers recommended Agent-General. We advertise and forward passengers Shipping Company only. Shipping Compa-ny offers 5 per cent. passage-money contribution advertising. Arrangement run for twelve months. Eecommend acceptance. Instruct whether may agree.

No. 6. (Telegram from the Premier to the Agent-General.) Wellington, 10th January, 1893. Shipping further conditions necessary. Writing.

No. 7. Sir, — Wellington, 31st January, 1893. Eeferring to your telegram of the 6th instant, stating the terms on which the Shipping Company will forward passengers to New Zealand who may be recommended by yourself, the Government views your proposal favourably, but is of opinion that the concession should be restricted to persons possessing capital somewhat as follows: Each head of a family should prove to your satisfaction that he is possessed of £100 in cash, and that he is also possessed of cash equal to the sum of £50 for each member of his family over twelve years of age. Subject to the above you may enter into an arrangement with the Shipping Company for twelve months, and advertise as you propose. I have, &c, John McKenzie, The Agent-General for New Zealand, London. For Premier.