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3rd. That on arrival of the said Vessel in New Zealand, the Company will, in addition to their present services, perform a monthly service between Auckland, Napier, Wellington, and Nelson, and vice versa, according to a time table to be approved by the Government, for a subsidy of Three Thousand Pounds per annum, and the Company undertake, until the arrival of said Vessel, to perform the said service by means of the White Swan, or some other steam Vessel, if the same can be obtained for the sum, and on terms referred to. I have, &c, (Signed) Edward Coleman, General Manager. The Honorable The Postmaster-General, &c, &c., &., New Zealand. DESCRIPTION OF STEAM VESSEL TO BE PROVIDED BY THE COMPANY. To be about 500 tons nett register, or about 850 tons Builder's measurement; and not less than 120 Horse-Power, Nominal, and Engines to be of the best description of geared Engines. Saloon accommodation to be provided for not less than 40 passengers, and Steerage accommodation for 36 passengers. Vessel to be fitted with Sifting Screw. Patent Superheating Apparatus. Condenser for Distilling Salt Water. Cabins to be not less than seven feet high, to be of the best description, and well ventilated. Machinery to be placed amidships. The Vessel to steam not less than 9 knots, and to be in every respect suitable for the Inter-Colonial Service, and in the highest state of efficiency. (Signed) Edward Coleman. POSTMASTER GENERAL) TO MR. COLEMAN. General Post Office, Auckland, 27th September, 1859. Sib,— I do myself the honor to acknowledge the receipt of your letter of the 12th instant, containing certain proposals for extending the Service at present performed by the Vessels of the Inter-Provincial Royal Mail Company, such extension to be effected by providing a fifth Boat, in addition to those already upon this Coast. In reply to your proposals, I have the honor to state that, without the sanction of the Legislature, the Government would not feel themselves at liberty to comply with the two first conditions annexed by you to that proposal ; if however, you can make a temporary arrangement, for the efficient performance, during the ensuing twelve months, of the East Coast Service, so as to effect a Bi-Monthly Communication between Wellington and Auckland ; the Government would be willing to entertain the matter. With this view, they are willing to allow the sum of £3000, for a service between Auckland and Wellington via Napier ; so arranged, that the Boat employed should start from Wellington on the Ist of every month, taking up the Mail brought on from Nelson by the Inter-Provincial Boat on her way South ; and should arrive again at Wellington from' Auckland, on the 12th, in time to meet the Inter-Provincial Steamer on her way Northward by the West Coast. In this case, the Government will be prepared to lay your proposals before the General Assembly, and to recommend them for adoption. Of course any subsidiary conditions with the owners of the " White Swan " will not be interfered with, so long as the service is punctually performed. I have, &c, (Signed) Henry John Tancred. Edward Coleman, Esq, Manager, Inter-Colonial Royal Mail Steam Company. MR. COLEMAN, TO POSTMASTER GENERAL. Inter-Colonial Royal Mail Steam Ship Office, Sydney, 11th October, 1859. Sir,— I have the honor to acknowledge the receipt of your communication, dated 27th September last, in reply to mine dated 12th ulto., containing certain proposals for extending the Service at present per-