D.—No. 7

Enclosure in No. 16. GOVERNOR SIB H. BARELY TO THE DUKE 01' NEAVCASTLE. Govei-rnnent Offices, Melbourne, 25th November, 1862. My Lord Duke, — The enclosed letter from the Postmaster-General of New Zealand, together with a Minute thereupon by the Postmaster-General of Victoria, have just been handed to me by my Chief Secretary, as elucidating the views of my advisers on the subject of establishing postal communication, vid Panama. As the mail for England closes in a few hours, I have not time to say more than that I entirely concur in those views, so far as they affect the inexpediency of any contract being entered into for the purpose, Avhich Avould endanger the continuance of the Suez line. T have, &c, H. Babkly. His Grace the Duke of Newcastle, K.G., &c.

Enclosure (A.) in Enclosure in No. 16. THE POSTMASTEE-GENERAL OF NEW ZEALAND TO THE CHIEF SECBETABY IN VICTOBIA. Melbourne, 19th November, 1862. Sib, — I have the honor to inform you that by a recent act of the Legislature of NeAv Zealand, a sum of thirty thousand pounds (£30,000) per annum has been granted for five years towards the maintenance of a monthly steam mail service to and from Great Britain, vid Panama, and the Government of that Colony has determined to co-operate Avith the Government of NeAv South Wales in the task of organising such a service. In furtherance of this object, lam about to proceed to Great Britain, fully authorised to take such measures as may seem desirable to be taken on the part of the Colony of New Zealand. Having reason to believe that the united exertions of the two colonies named will be successful in establishing a steam Postal service vid Panama, 1 do myself the honor to enquire Avhether the Government of the Colony of Victoria are prepared to join them in guaranteeing the necessary subsidy in the proportion of Fifty thousand pounds (£50,000), by New South Wales, and Thirty thousand pounds (£30,000) by New Zealand, and, if not, whether they will agree to apply to the colonial contribution towards the expense of this line, when fixed, the same rate of apportionment as at present obtains Avith respect to the route vid Point de Galle and Suez. I need scarcely point out that, by the adoption of this rule, the Colony will not be called upon to contribute except for and in proportion to any advantage gained, and that, unless the rule be adopted, much difficulty leading to confusion will probably attend the conveyance of any correspondence from or to the Colony of Victoria along the route in question. I have, &c, Cbosbie Wabb, The Honorable the Chief Secretary. Postmaster-General of Ncav Zealand.

Enclosure (B.) in Enclosure in No. 16. MINUTE ON A LETTEE lEOM TUB UONOBABLE CBOSBIE WABD ON THE SUBJECT OF STEAM POSTAL COMMUNICATION VIA PANAMA. General Post Office, Melbourne, 25th November, 1862. The proposals contained in the letter from the Honorable C. Ward, on the subject of steam vessel communication with England, vid Panama, are such as I cannot recommend for the favourable consideration of the Cabinet.

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PAPERS RELATIVE TO THE

Number. Date. 25 Nov. 1862. j Description of Document. Copy of a Despatch from the G-overnor of Victoria, on the subject of establishing postal communication via Panama Description of Document. 114