10

For the Colonial Secretary of
New South Wales.

Memorandum by Mr. Sewell on the
part of the New Zealand Govern-
ment, relative to the contract for
the Steam Postal Service.

1. I understand the contract between
   the Imperial Government and the
   Glasgow Company to be, that the
   latter shall carry the mails of the five
   Australian colonies—viz., Victoria,
   New South Wales, South Australia,
   Van Diemen's Land, and New Zea-
   land, in consideration of an annual
   bonus of £175,000, of which half is to
   be paid by the Imperial Government,
   and half by the colonies, each to receive
   and retain its own postal revenue. The
   postage to be uniformly prepaid, the
   Imperial Government on its part, and
   each of the colonies on its part, to be
   obliged to forward letters to their
   destination without further charge,
   using the local posts for that purpose
   without payment.

2. The proportion of bonus payable
   by the colonies is to be apportioned
   between them according to the number
   of letters sent and received in each
   year to and from England, to be deter-
   mined by the Imperial Government
   from returns at the London Post Office.
   This to include letters sent and
   received through whatever channel, and
   whether by Post Office steamers or
   other vessels.

3. The tariff of rates for passage and
   freight to be regulated by the Company
   —the whole management to be with
   them, and the profit or loss to be
   theirs.

4. The steamers to make Melbourne
   their principal port of arrival and
   departure.

5. But to be at liberty, in compli-
   ance with the wish of the Company, to
   go on to Sydney.

6. In addition to the main service be-
   tween England and Melbourne, branch
   services to be maintained between Mel-
   bourne and the colonies of Van Die-
   men's Land, South Australia, and New
   Zealand. The mode of arranging the
   branch service is left by the Imperial
   Government to be settled by the colo-
   nies themselves.

7. The cost of such branch services
   to be added to the above sum of
   £175,000, and apportioned in the ag-
   gregate between the colonies, according
   to the above rule.

8. The Melbourne Government has
   issued circulars to the other colonies,
   stating proposed terms of tender, ask-
   ing opinions thereon, and proposing a
   conference at Melbourne,—but so far
   as I can learn nothing further has been
   done.

9. It appears to me, so far as I can
   judge, that the course taken by the
   Melbourne Government is correct, that
   such a conference should take place
   between persons properly authorized
   by the respective Governments, or that
   some one Government should be autho-
   rized to act on behalf of all.

10. If a conference be held, Mel-
    bourne seems to be the most convenient
    place of meeting.

11. For the general interest of all the
    colonies who are alike concerned in the
    branch service, no delay should take
    place in completing the arrangements.

12. From what I can learn it appears
    that the service for New Zealand may
    be more cheaply and better peformed
    from Sydney than from Melbourne, but
    this can only be tested by tenders.

13. I understand there are only two
    parties, the Australian Steam Packet
    Company, and the "William Denny,"
    capable of contracting for the service.
    I suggest that it will be desirable to
    test at once the terms on which they
    will perform it from Sydney and Mel-
    bourne.

14. If New Zealand should prefer
    Melbourne to Sydney, I assume that
    the right of choice is open to her.

NEW ZEALAND.
Colonial Secretary's Office,
Auckland, Nov. 20, 1856.

SIR,—I have the honor to acknowledge
the receipt of your letter of the 4th inst.,
with the accompanying copy of a Memo-
randum furnished by you to the Govern-
ment of New South Wales, on the subject
of the establishment of a steam mail ser-
vice for New Zealand.

2. As under this head is comprised both
   the extension to New Zealand of the Aus-
   tralian Mail contract lately concluded, and
   the further conveyance of the Mails be-
   tween the various Provinces, the main ob-
   ject to be considered is the establishment
   of such a steam service as will in the most