¥.— 2

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6. In view of the fact that, whilst the mails from Australasia are carried by the accelerated train through Italy and France, those by Orient steamers are carried by ordinary mail-train, the time occupied being about the same in each case, we recommend that the accelerated train-service be abolished, as decided by the Adelaide Conference of 1890, especially as out of the postage of 2-J-d. per -Joz. letter, fifteen-sixteenths of Id. has to be paid for the Continental transit by such trains, against three-eighths of Id. by ordinary trains. We deem it proper to mention that the words in italics comprise alterations made by Ministers in the draft conditions submitted by us to the Brisbane Conference, and we have therefore considered that it would be out of place on our part to disturb them, with the exception of the one relating to the day of departure from Adelaide, which, in the interests of all parties should, in our opinion, be Thursday, in lieu of Saturday W Geay, Chairman. Charles Todd. S. H. Lambton John McDonnell. James Smibeet. E. A. Sholl. The Conference then proceeded to consider the report, paragraph by paragraph. Paragraph 1 read and agreed to. Paragraph 2. Subsection (a) read. Hon. Mr Wynne (Victoria) I suggest the term should be " five " years in the new tenders, as larger and faster boats are being built every year, and for that reason it would be a mistake to allow too long a term. I move that the term be " five" years. Hon. Mr Paekeii (Western Australia) I think, if tenderers were bound to " five" years, the subsidy asked would be considerably more than if the term were " seven " years. Hon. Mr Wynne (Victoria) withdrew his motion. Subsection (a) agreed to. Subsection (b) read and agreed to. Subsection (c) read. Hon. Mr. Wynne (Victoria) I suggest that, instead of fixing a time, tenderers should be required to state the time they would deliver the mails in. The colonies could get them delivered in less than thirty days, probably in twenty-eight or twenty-six days, and that would make a great deal of difference in the cost. Hon. Mr Paekee (Western Australia) I think the wording of the resolution is ample to cover what was intended. Subsection (c) agreed to. Subsection (d) read. Amendment proposed. In line 6, to omit " that port," and insert in lieu thereof " the port of call." (Hon. Mr Wynne, Victoria.) Amendment agreed to. Subsection (d), as amended, agreed to. Subsections (c) and (/) read and agreed to. Subsection (g) read. Hon. Mr Paekee (Western Australia) If Colombo were omitted from the contract, two or three days' time would be gained. Hon. Dr Cockbuen (South Australia) I support the clause, as there are certain advantages to be gained in the matter of trade between the Australian Colonies and India. At present there is a considerable trade in wines and copper, and we are endeavouring to extend the butter trade. There is also the advantage of the mail-service fitting in with the Eastern mail-service, and if the vessels did not call at Colombo that could not be done. The saving of time in not calling at Colombo is not sufficient to counterbalance the advantages I have named. Subsection (g) agreed to. Subsection (h) read. The Hon. Mr. Kidd (New South Wales) moved, and the question was proposed, That subsection (h) be struck out. Hon. Mr Kidd (New South Wales) I am of opinion this clause should be omitted for the simple reason, as already stated by the Hon. Mr. Wynne, that in their own interests the steamshipowners would make all the provision they possibly could to carry out the desire of the colonies in the matter If the company securing the mails had to make the provision required, the outside companies would simply do the same. If trade is to be obtained we would soon find shippers and others providing slow-going steamers that could more effectually overtake the trade than by putting in the conditions alluded to in the proposed tenders for the carriage of the mails. It would be a very great mistake to interfere in any way in this matter, or to make it a condition, because it is not right that the Postal Departments of the various colonies should have to bear the burden of anything in connection with a trade of the kind. The colonies would be charged a very much higher subsidy if they let a tender with a condition of the character mentioned than what they would under the present conditions of contract. I might state that my Government is very much opposed to any condition of the kind being inserted in any of the mail-contracts. It has been pointed out already at the Conference that if they could get vessels like the " Gothic " to come to New Zealand, where there was a large amount of trade, what is there to encourage such vessels if they gave a subsidy to one particular lino. It has been explained to mo that, although one voyage might not pay the owners for sending a large steamer like the " Gothic," the encouragement is sufficient without a subsidy, as it is considered the business will so enlarge that all these steamers would be continued. If a company would send a steamer like the " Gothic " without any subsidy, we shall have a good many " Gothics" sailing to the colonies to pick up the trade in the same way This trade is growing in New South Wales, and vessels will have to pick up what they