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interview of yesterday, I regret that I am not in a position to give this information definitely until I am in possession of the draft deed of contract. A limited company, with an underwritten capital of £200,000, is being formed to carry out the service, and will be prepared to execute the bond. The chairman of this company is Lord Teynham, with an efficient board of directors. If, however, the New Zealand Government prefer to have the bond executed by an independent concern I shall arrange with one of the large guarantee societies to give the required bond, but, as verbally stated to you yesterday, I am not in a position to proceed with my negotiations to this end until the actual contract which will form the basis of the bond is in my hands. My solicitors are Messrs. Ashurst, Morris, Crisp, and Co., of Throgmorton Avenue, E.C., to whom I refer you, and I shall be obliged if you will kindly request Messrs. Mackrell, Maton, Godlee, and Quincey to send the drafts of contract and security bond to them as soon as prepared. I am, &c, The Agent-General for New Zealand. H. C. Sleigh.

No. 19. The Agent-Geneeal to Messrs. Mackrell, Maton, Godlee, and Quincey. Sirs,— South African Steam Service. 9th May, 1902. I am directed by the Agent-General to transmit herewith copy of letter received from Mr. H. C. Sleigh since Mr. Maton was here this afternoon, and in reference thereto to request you in communicating with Mr. Sleigh's solicitors to inform them that the New Zealand Government will require the bond to be executed by sureties outside any company formed to carry out the service, such sureties to be approved by the Government. I am also to say that the Agent-General -will be obliged by your forwarding the draft contract and bond to him before submitting it to Mr. Sleigh's solicitors. I am, &c, Messrs. Mackrell, Maton, Godlee, and Quincey. Walteb Kennaway.

No. 20. South African Steam Services. Gables. To Agent-General, London (sth April, 1902). Sleigh's tender, reported posted seventeenth February, not arrived. What has become of it ? To whom was it addressed ? From Agent-General to Premier (6th April, 1902). Sleigh's tenders enclosed in my despatch of the fourteenth February, No. 4504. From Premier to Agent-General (17th April, 1902). Cabinet decided accept tender conditionally his making cash deposit £3,000 within seven days, and give you satisfactory security, £20,000, to exist during currency contract for performance thereof. On sureties signing bond, deposit £3,000 to be returned. Other conditions generally on lines of Sleigh's letter 11th February. Only point is question calling Australian ports to fill up. Government are of opinion this should be confined to one port, Westralia. Cable what you do. Agent-General to Premier (25th April, 1902). Have received deposit £3,000 from Sleigh on condition that contract is to contain clause permitting steamers to call at three Australian ports to fill up with cargo for South Africa. From Premier to Agent-General (28th April, 1902). Eeperring to your telegram of 25th April, close with Sleigh thirteen-knot service. Steamers to have right to call in three Australian ports after loading New Zealand, for purpose of filling up, but for no other. Steamers to commence contract early. Premier to Agent-General (29th April, 1902). South African steamboat service : One port in Western Australia must be included in contract, as well as right to call at two Australian ports, providing this colony has not been able to load steamboats.

No. 21. Cablegram to Agent-Geneeal. Agent-General, London. —South African steam service should stipulate that Fremantle be port of call Western Australia. One port gives option Albany, which would be useless for trade purposes. Apd. Cable sent accordingly.—26th June, 1902.

No. 22. First Proof of Draft Contract. This indenture, made the day of , one thousand nine hundred and two, between His Majesty the King, in right of his Colony of New Zealand (who with his heirs and

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