H.—27.

calling at any or all of the South African ports of call shall release the Contractor from the obligation imposed by clause 9 hereof, to despatch a steamer from the port of departure punctually upon the date fixed by the Government under the provisions of the said clause. Ocean speed to be maintained. 14. Each voyage shall be completed at an average ocean speed of not less than 13-J knots. In the event of any steamer failing to attain on any voyage an average ocean speed of knots, there shall be deducted from the subsidy payable in respect of such voyage such sum as the Government shall deem reasonable, not exceeding £100 for the first half-knot or less, £150 for the second halfknot or less, and £300 for the third half-knot or less, and £500 for each half-knot beyond one and a half knots by which the actual average ocean speed shall be below the average ocean speed hereinbefore mentioned. The actual average ocean speed for the purposes of this clause shall be ascertained over the whole voyage between the port of departure and Cape Town, and shall be calculated over such portions of the voyage as lie outside the limits of each of the ports mentioned. Rate of loading and discharge. Lay hours. 15. At all ports other than the port of departure the said steamers shall load at a rate of not less than 50 tons an hour, and shall discharge at a rate of not less than 50 tons an hour, and shall not remain in any port other than the port of departure or Gape Town longer than such a time (hereinafter called " the lay hours") as, calculated as aforesaid, may be necessary to load or discharge the cargo actually loaded or discharged at such port. There shall be deducted from the subsidy payable in respect of any voyage such sum as the Government may deem just, not exceeding £3 for every hour during which any steamer may remain in any port beyond the lay hours : Provided always that in calculating the time in respect of which a deduction from the subsidy may be made the time saved in one or more ports shall be set off against the excess of time occupied in any one or more ports. The lay hours shall commence when the steamer shall have arrived in any port, and shall end at the time when the steamer has finished discharging, but the time between midnight on Saturday and midnight on Sunday shall be excluded. Carriage of Mails. Mails to be carried. 16. The Contractor will convey all mails which the Postmasters-General, or either of them, shall at any time require the Contractor to convey between the said colony, Western Australia, Natal, and Cape Colony. No payment for mails. 17. No payment shall be made to the Contractor in respect of the carriage of mails, or of any service rendered in connection therewith, other than the subsidy hereinafter mentioned. Eesponsibility for mails. 18. The Contractor shall be responsible for all damage or injury to the mails placed on board, however the same may be occasioned, the act of God and the King's enemies always exeepted. Accommodation for mail officer. 19. The Contractor shall, if required by the Government, provide, without charge, for the whole voyage, from the port where he embarks, back to the port of departure, first-class accommodation for an officer in charge of the mails, appointed by the Postmasters-General, or either of them, and shall, without charge, victual such officer as a first-class passenger from the time of his embarkation to the time of the arrival of the steamer on the homeivard voyage at the port of departure. Cargo. Rates for cargo to South Africa. Horses and cattle. 20. The Contractor will receive and carry all cargo and live-stock which the steamers are able to carry between any of the ports in New Zealand and the South African ports at rates not exceeding those hereinunder mentioned, that is to say,— s. d. Wheat and flour ... ... ... 30 0 per ton of 2,2401b. Barley ... ... ... ... ... 32 6 „ „ Oats ... ... ... ... ... 35 0 „ Bran ... ... ... ... ... 40 0 Potatoes, in sacks ... ... ... ... 40 0 „ „ boxes ... ... ... ... 37 6 „ 50 cubic ft. Hay (oaten or meadow), pressed in bales ... 37 6 „ „ Frozen meat and dairy produce and all cargo carried in insulated chambers at current summer rates ruling between New Zealand and London. All other cargo at proportionate rates fixed by the Government, but not less than those current between New Zealand and London. Horses and fat cattle, £12 10s. per head on number shipped. Payment of Subsidy. Return of voyage to be forwarded. 21. The Contractor shall, within twenty-four hours of any steamer's arrival at her final port of discharge in New Zealand on the conclusion of each round voyage, forward to the Minister of Industries and Commerce, Wellington, New Zealand, a return in a form to be approved by the Government, which shall show the date of departure, the date and hour of arrival at and departure from each intermediate port, the amount of cargo discharged and shipped at each intermediate port, the distance run, and the date and hour of arrival at the port of final destination. Such return shall be verified by the production of the steamer's log or otherwise as the Government shall determine. The said Minister of Industries and Commerce shall, upon receipt of such return, issue his certificate showing the amount of the subsidy due in respect of such voyage after making the deductions (if any) proper to be made in accordance with the provisions of this contract.

14