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being considered, I think it would not be wise to ask for a lower rate. I have therefore intimated to the companies, informally, that the arrangements between now and June will continue to be based upon the £15 rate as heretofore. I have, &c, The Hon. the Minister of Immigration, Wellington. F D. Bell.

Enclosure 1 m No. 23. Mr. Chas. Eitchie to the Agent-General for New Zealand. Shaw-Savill-Albion Company (Limited), Dear Sir,— 34, Leadenhall Street, London, E.C., 4th December, 1883. I have to express regret that your minute of the 6th ultimo, for the consideration of the New Zealand Shipping Company and Shaw-Savill-Albion Company, on the conveyance of Government emigrants and freight, has not had an earlier reply from this company The board of directors gave their full consideration to the matters which formed the subject of the minute immediately on its receipt, and, desiring to respond favourably to the invitation given to the New Zealand Shipping Company and Shaw-Savill-Albion Company to make proposals through you to the New Zealand Government for a more permanent service than that stated in the resolution of the Joint Committee of both Houses at Wellington, my co-directors deputed me to request a conference with Mr Coster, in the hope of being able to arrive at a satisfactory arrangement with the New Zealand Shipping Company for submitting proposals to you towards securing an object which appeared to us very desirable in the interests of both companies. After some delay awaiting the convenience of Mr Coster an opportunity was afforded me of laying before him the views of the Shaw-Savill-Albion Company directors on this matter, their wish being to learn his views and readiness to meet these as far as possible, in the desire to bring about an arrangement between the two companies necessary to secure the object to which the minute invited our attention. But I failed then, and at a subsequent meeting, to induce Mr Coster to enter upon negotiations for such an arrangement, succeeding only in eliciting from him his intention to intimate to you that the New Zealand Shipping Company is prepared to continue till June next the conditions upon which Government passengers and freight have been conveyed by the respective companies during the past year Being thus frustrated in their endeavour to carry out your desire, as expressed in the minute, that the companies could see their way to making alternative proposals to the Government of a more permanent kind than the one which is the immediate cause of, this minute, the directors of the Shaw-Savill-Albion Company have had to limit their subsequent consideration to the matter of the temporary service, and, in their desire to avoid any action which could be construed by the New Zealand Shipping Company as antagonistic in relation to the course Mr Coster indicated his intention to adopt in reference to the minute, they have decided to accept on behalf of this company until next session of the General Assembly, a continuance of the present position of the Government service as between the two companies, though the conditions of this service, in giving to the New Zealand Shipping Company the option of taking or refusing Government emigrants by their monthly steamer dependent upon what number of paying passengers they can obtain, as well as on the other points, are, as stated in the minute, manifestly to the advantage of that company compared with the apportionment of Government work which had previously existed for a period of years. We shall, as during this year, be ready to meet your requirements for tonnage, though the short notice of such which the indecision of the New Zealand Shipping Company frequently necessitates your giving us brings to us not only inconvenience but sometimes loss, as we have never hesitated at once to respond fully to your requirements whatever loss in paying passengers consequently shut out, this may involve to us. Before the expiration of this temporary service, this company will be in a position to approach the Government of New Zealand with reference to a contract for a fast monthly service of a permanent character by large and powerful steamers. I have, &c, Chas. Eitchie, The Agent-General for New Zealand, 7, Westminster Chambers. Chairman.

Enclosure 2 in No. 23. The Managing Director, N.Z. Shipping Company, to the Agent-General. N.Z. Shipping Company (Limited), Sir,— 138, Leadenhall Street, London, S.E., 4th December, 1883. Having reference to the minute which you were pleased to address for the consideration of this company and the Shaw-Savill-Albion Company (Limited) under date the 6th ultimo Without at the present time discussing the matter of that document, with much of which we are not in accord, I have the honour to inform you that, in the existing position of matters, and of the respective companies as regards steam, this company fails to see the utility of your proposal that it should, at this juncture, make a joint offer with the Shaw-Savill-Albion Company for the carriage of the Government emigrants and cargo. We are, however, prepared for the present to continue the arrangements under which we have worked with your department during the past few months and since the establishment of our monthly direct steam line. I have, &c, J L. Coster, The Agent-General for New Zealand. Chairman and Managing Director,