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(5.) (a.) From Aden to Colombo, Fremantle, and Adelaide, and vice versd. (b.) Ditto, with extension to Melbourne and Sydney, and vice versa, (c.) Ditto, with extension to Melbourne, Sydney, and Pinkenba, and vice versa. (6.) (a.) From Colombo to Fremantle and Adelaide, and vice versa, (b.) Ditto, with extension to Melbourne and Sydney, and vice versa, (c.) Ditto, with extension to Melbourne, Sydney, and Pinkenba, and vice versd.

APPENDIX B. Eastern Mail Service. Proposals of the Peninsular and Oriental Steam Navigation Company for an Extension of their Services after the 31st January, 1905. (Present Subsidy, £330,000.)

Approximate Cost of Paper.— Preparation, not given; printing (1,500 copies), £19 4s.

By Authority : John Mackay, Government Printer, Wellington.—l9os.

Price Is.]

Proposal No. Annual Subsidy. Conditions. 1 cj £ 320,000 330,000 Three years' extension of the contract on the present lines. Three years' extension on the present lines, but with an acceleration of twenty-four hours in the delivery of the outward mail at Bombay, the Homeward service to remain unchanged. In the event of this arrangement being subsequently extended for a further period of two years— i.e., five in all —the subsidy to be reduced retrospectively by £10,000 per annum. Three years' extension with an acceleration of twenty-four hours for the Bombay and China mails, both outwards and Homewards, the company to have the option of conveying the China and Australian mails via Bombay with relaxation of penalties on the Homeward voyage, unless the present contract time is exceeded. The south-west monsoon allowance to be increased from twenty-four to thirty-six hours. In the event of this arrangement being subsequently extended for a further period of two years— i.e., five in all—the subsidy to be reduced retrospectively by £15,000 per annum. this proposal the Hongkong mails would be accelerated in the outward direction by twenty-four hours during the fair season and twenty-nine hours during the north-east monsoon. In the Homeward direction the transit would be eight hours shorter in the fair season and four hours longer in the south-west monsoon. The Singapore mails would gain twelve hours outwards, and Homewards would be at a disadvantage of twelve hours in the fair season and twenty-four hours in the south-west monsoon. Similarly the Penang mails would gain fifteen hours outwards, and be at a disadvantage of eleven hours or twenty-three hours Homewards, according to the season. The Colombo mails would be sixteen hours longer in transit outwards, and thirty-six or forty-eight hours longer in the Homeward direction, according to the season. The Australian transit would remain as before.) Three years' extension with the substitution of Marseilles for Brindisi as the European port of departure and arrival of the mails. The company to have the option of conveying the China and Australian mails vid Bombay. The time of transit to be as now on the India and China sections, but twenty-four hours longer on the Australian line. In the event of this arrangement being subsequently extended for a further period of two years — i.e., five years in all —the subsidy to be reduced retrospectively by £25,000 per annum. Five years' extension on the present lines with an acceleration of twentyfour hours for the Bombay mails, forty-eight hours for the China mails, and thirty hours for the Australian mails in each direction, but with relaxation of penalties on the Homeward voyages as under proposal 3. Three years' extension with an acceleration of twenty-four hours to and from Bombay, Ceylon, the Straits Settlements, Hongkong, and Shanghai, under the present penalty clauses in both directions, but with a southwest monsoon allowance of thirty-six hours. In the event of this arrangement being prolonged for a further period of two years— i.e., five in all—the subsidy to be reduced retrospectively by £10,000 per annum. A further retrospective reduction of £15,000 per annum to be given in the event of the arrangement being maintained for seven years in all. or 320,000 3 330,000 or 315,000 330,000 or 305,000 330,000 5 6 340,000 or 330,000 or 315,000

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