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You will observe that the proposal is made on the basis of certain correspondence which has taken place between myself and Mr. Cummins, the Chairman of Committees of the Union Bank. A portion of that correspondence has been already transmitted to you. The continuation is herewith. The proposal of the Union Bank appears to me to be in accordance with the Terms agreed on. So far as the Colonial Government of New Zealand is concerned, I beg to express my assent, and I submit it to the favourable consideration of the Lords Commissioners of the Treasury, trusting that it will be accepted. I have &c, (Signed") HenkY Sewell. C. Fortes Cue, Esq., tn Sir C. E. Trevelyan, K.C.B. Downing Street, 7th Decemher, 1857. Sir,— I have received from Mr. Sewell copies of the correspondence which has passed between himself,' the Board of Treasury, and the Union Bank of Australia relative to the New Zealand Loan. As the terms proposed by the Union Bank are stated by Mr. Sewell to agree with those arranged at personal interviews between himself and Mr. Wilson, I am directed by Mr. Secretary Labouchere to request that you will move the Lords Commissioners to give their formal sanction to the arrangement referred to. I am to add, that as Mr. Sewell is anxious that their Lordship's sanction should be notified to the Governor of New Zealand by the Mail of the 11th December, Mr. Labouchere would wish to be favoured with an early reply to this application. I am &c, (Signed) C. Fortescce. Sir C. E. Trevelyan, X.C.8., to Mr. Merivale. Treasury Chambers, 20th January, 1858. Sir,— With reference to your letter of the 7th ultimo, I am commanded by the Lords Commissioners of Her Majesty's Treasury to transmit to you copy of a letter from the Secretary to the Union Bank of Australia, of their Lordships reply thereto, of the form of agreement to be made with that Bank for the negotiation of the Loan of £500,000 to be raised for the Colony of New Zealand, and of a further letter from the Union Bank assenting to the terms of the agreement, and I am to request that you will move Mr. Secretary Labouchere to cause my Lords to be informed at his earliest convenience of the receipt of any requisition from the Governor of New Zealand, for raising any portion of the Guaranteed Loan. I am, &c, (Signed) C. E. Treyelyax. The Secretary of the Union Bank of Ailslralia to James Wilson, Esq. Union Bank of Australia, 38, Old Broad street, London, 31st December, 1857. Sir,— I am desired by the Directors of the Union Bank of Australia to state for the information of the Lords Commissioners of Her Majesty's Treasury the arrangement made on the 16th October last, between Mr. Sewell, the agent for the Colony of New Zealand, and the Directors of this Bank, with! the consent and approbation of the Treasury, for the negotiation of the Loan of £500,000 (five hundred thousand pounds) to be raised under the Guarantee of the Imperial Government in terms of the Act 20 and 21 Vie. c. 51, entitled "An Act to guarantee a Loan for the Service of New Zealand," viz., that this Bank agrees to take the Loan at par, and is ready to pay and advance the above sum in; the following way: £170,000, or thereabouts, in London, on Ist April next, for payment of the New Zealand Company. £30,000,- or thereabouts, required at Auckland, New Zealand, say on Ist April, next. £90,000, or thereabouts, to pay the New Zealand Debentures, issued under the last Debenture' Act, and believed to be payable in Sydney, New South Wales. £25,000, or thereabouts, to pay off old New Zealand Debentures. £185,000, (the Balance) as may be required for the purchase of Native Lands to be paid in New Zealand. And with the further understanding that the New Zealand Government shall be at liberty to diminish the payments in New Zealand, and to increase those in London by an amount not exceeding £30,000 (thirty thousand pounds). All the Bonds to bear date and carry interest for a period of three months prior to the times foced respectively for the payments, whether in England, Sydney, or New Zealand.