D—No. 3

9

2. Capital to be provided by the Contractors for purchase of said boats, and the necessary duplicates for machinery, steam winches, extra cabin accommodation, cost of establishing numerous agencies and offices, &c, &c, in the Colonies, say £80,000. 3. The Contractors bind themselves to despatch the Steamers "Lord Ashley" and "Lord Worsley" within one month from the signment of the Contract, and the remaining two within two months from the date of departure of the two first Steamers from England. 4. The Imperial and Colonial Governments to pay to the Contractors the following annual subsidies (£24»OOO) viz :— The Imperial Government for that portion of the service comprised between Sydney, New South Wales, and Nelson in New Zealand £14,000 The Colonial Government for the Inter-Provincial Service, embraced hi the six ports of Nelson, Auckland, Wellington, New Plymouth, Port Lyttelton, and Otago, the annual subsidy of £8,000 And 2J per cent additional to be a guarantee on the capital of £80,000 should profits not be so much as that amount £2,000 £10,000 £24,000 5. The sum of £25,000 to be at once advanced from the Colonial Government to the Contractors towards the purchase and outfit of Steamers above referred to, such advance to be repaid by the appropriating of 50 per cent, out of the subsidy before mentioned, and to be secured on the Steam vessels. 6. The agreement to be in force for 10 years, subject to determination by the Imperial or the Colonial Government at the expiration of 7 years, if they think proper, on giving 12 months' notice previously. 7. The details of the Contract to be hereafter settled and arranged to the full satisfaction of the Imperial and Colonial Governments. In submitting to you the foregoing proposals we beg to state that we are fully prepared to carry them out to the satisfaction of the Imperial and Colonial Governments, and beg respectfully to refer to James Clay, Esq., M.P., Lord Ashley, M.P., and also to Messrs. S. Smith, Brothers, Bankers of Hull as to our respectability. We could refer to others in case of need, but suppose that the above names will be sufficient for the purpose. We beg most respectfully to request your reply as early as possible, as two of the Steam vessel* are immediately available, and in fact lying unemployed pending the definite conclusion of the negociation. We are &c, (Signed) T. C. Peaeson, Coleman & Co: Henry Sewell, Esq. Downing-street, 25th February, 1858. Sib,— With reference to your letter of the 16th of September, and to my reply of the 23rd of the same month, lam directed by Mr. Secretary Labouchere, to transmit to you a copy of a letter which has now been received from Mr. H. Sewell on the subject of a further arrangement which is proposed for the establishment of the Postal Service between this Country and New Zealand, and I am to request that you will acquaint the Lords Commissioners, that under all the circumstances, Mr. Labouchere would recommend to their Lordships the adoption of the arrangement here proposed. In connection with this subject I transmit to you a copy of a despatch from the Governor of New Zealand, with copies of a correspondence which had passed with the local Government of Victoria relative to the establishment of the postal service between New Zealand and Australia^ I ara, &c, (Signed) H. Meeivale. Sir C. E. Trevelyan, K.C.B. Treasury Chambers, 27th February, 1858. Sic,— With reference to your letter of 25th instant, transmitting copy of a letter from Mr. Sewell, on the subject of a further arrangement which is proposed for the establishment of a Postal Service between this Country and New Zealand, together with copy of a despatch from the Governor of New Zealand with copies of a correspondence which had passed with the local Government of Victoria relative to the establishment of a Postal Service between New Zealand and Australia, I am commanded by the Lords Commissioners of Her Majesty's Treasury to acquaint you, for the information of the Secretary of State, that they concur in his opinion, that, under all the circumstances, the arrangement now proposed in regard to the establishment of the Postal Service between this Country and New Zealand may be adopted. Their Lordships will not object to the proposal to advance £25,000 out of the sum to be raised on account of the guaranteed loan to New Zealand, provided it be clearly understood that this sum