D—No. Iα

FURTHER PAPERS RELATIVE TO THE STEAM POSTAL SERVICE. No. 1. UNDER SECRETARY, VICTORIA, TO COLONIAL SECRETARY, NEW ZEALAND. Victoria, Colonial Secretary's Office, Melbourne, 14th July, 1860. Sra,— I have the honour to forward herewith a Memorandum from the Honorable the Postmaster General of this Colony on the subject of the new contract for the conveyance of Mails between Point de Galle and Melbourne, with other papers relating to that contract ; and I am directed by the Chief Secretary to invite the earliest attention of the Government of New Zealand to the matter. I have, &c, J. Moore, The Honorable the Colonial Secretary, Under Secretary. New Zealand. Enclosure 1 in No, 1. MEMORANDUM FROM THE POSTMASTER-GENEBAL TO THE CHIEF SECRETARY OF VICTORIA OX THE SUBJECT OF THE NEW CONTRACT FOR THE CONVEYANCE OF MAILS BETWEEN POINT DE GALLE AND MELBOURNE. In consequence of the information contained in the accompanying Despatch and its Enclosure? , , respecting the new arrangement with the Peninsular and Oriental Company for the conveyance of the Australian Mails, it becomes necessary to communicate with New South Wales, South Australia, Tasmania, Western Australia, Queensland and New Zealand on the subject, in order to ascertain the views of the respective Governments thereupon. As will be seen by the Enclosures to the Despatch from the Secretary of State for the Colonies of 18th May, 1860, (copy herewith) an arrangement has been entered into with the Peninsular and Oriental Steam Navigation Company for a monthly mail service between Melbourne and Point do Galle, via King George's Sound, in concert with one of the lines of Postal Steamers conveying the India and China Mails. For this service the sum of £120,000 per annum, by way of subsidy, lias been agreed upon ; one moiety to be paid by the British Government, and the other by the Government of Victoria. The Mails will in future be conveyed under this new Contract ; the first outward Steamer leaving Point de Galle on the 22nd instant, and the first Vessel with the homeward Mails leaving Melbourne on the 26th. It is consequently of the utmost importance that an immediate arrangement should be entered into by this Government with such of the Colonies interested as intend to participate in the benefits of the new service. I have, therefore, the honor to suggest that the Concurrence of the Governments of New South Wales, South Australia, New Zealand, Tasmania, Queensland and Western Australia may be invited in the following proposals:— Ist. That each of the Colonies shall contribute to the moiety (£60,000) to be paid by Victoria, and to the cost of the transit of Mails through France and Egypt, and all other expenses in proportion to the number of letters despatched by each, to be ascertained at such periods as may hereafter be determined on. 2nd, That in the event of any of the Colonies declining to enter into any such agreement, the proportion that would be payable by such Colony or Colonies shall be charged to the Colonies contributing, according to the number of letters despatched by each. 3rd. That the cost of the Branch Services from Melbourne shall be borne exclusively by the Colonies requiring the same. I have further the honor to suggest that a copy of this Memorandum may be forwarded to the Colonies interested in this question, with an urgent request that the earliest possible attention may be given to the subject, and, in the case of New South Wales, South Australia and Tasmania, that the decision of the respective Governments may be communicated, if possible, before the sailing, on the. 26th instant, of the next homeward Mail. John K. Bailey. General Post Office, 11th July, 1860.

(No. 2183.)