economical manner possible ensure a rapid
and certain means of communication be-
tween the several ports of this colony and
Australia and Great Britain.

3. This object will most certainly be at-
   tained if the two services were combined,
   and the same vessels ran the whole route;
   the mails for each port would thus, without
   delay, be forwarded by the same boat which
   conveyed them to the colony; while at the
   same time, passengers between Australia
   and the several Provinces would be saved
   the expense, inconvenience, and delay,
   otherwise attendant on a change from one
   vessel to another.

4. With this view it is advisable that
   tenders for the conveyance of mails—first
   from Sydney to Manukau or Auckland,
   and secondly from the latter ports to
   the ports specified in the draft adver-
   tisement herewith enclosed—should be
   called for simultaneously, with an intima-
   tion that it is the desire of this Govern-
   ment that the two services should if possi-
   ble be combined. Were this accomplished,
   two boats could convey the mails from
   Sydney to Auckland or Manukau, and
   thence round the colony and back to Syd-
   ney; to which port, rather than Melbourne,
   it is desired that the New Zealand steam-
   ers should ply, as being at the same time
   cheaper, ensuring a communication both
   with Melbourne and Sydney (through the
   the English steamers), and affording a
   means of getting direct from New Zealand
   to Sydney, which will in a few months,
   from the cessation of the subsisting ar-
   rangements with the William Denny, be
   otherwise wanting.

5. The three routes specified in the ad-
   vertisement, for the Inter-Provincial Ser-
   vice, would, in the order in which they are
   respectively numbered, afford the most
   rapid medium for the distribution both of
   the English and New Zealand Mails. Of
   these the first route would effect a saving
   of four days in time over the second, and
   of nearly a fortnight over the third. But
   as some disinclination may be felt on the
   part of the contractors to engage that the
   steamers should leave Manukau at stated
   periods, owing to the possible state of the
   bar during the prevalence of strong west-
   erly gales, the second route may possibly
   be preferred. The third route, although
   affording somewhat more communication
   between the Southern Provinces, is objec-
   tionable from the additional time which
   would be required, thus delaying the trans-
   mission of replies to letters from England
   or Auckland, and increasing, from the time
   involved, the expense of transit. At the
   same time it is advisable that tenders should
   be invited for it in order fairly to test the

question of expense by the various routes
which have been at different times pro-
posed. For the same reason you will per-
ceive that the advertisement invites tenders
for any other route which contractors might
desire to take.

6. The route indicated in your letter
   would require three boats, none of which,
   however, would be fully employed; while,
   therefore, no one boat would be doing as
   it might, some inconvenience and expense
   would be incurred by passengers, especially
   to and from the southern ports, from the
   necessity of changing from one boat to an-
   other, and of waiting for the arrival of that
   boat in which they were finally to proceed.
   In a smaller degree this objection would
   also apply to the transmission of letters.

7. As the Government, from the cir-
   cumstances that the decision as to one of
   the two services does not altogether rest
   with it, is precluded without further infor-
   mation from determining absolutely in this
   matter; and as it is most desirable that
   an efficient steam service for New Zealand
   should be secured at as early a period as
   possible; it does not desire that, unless
   unavoidably necessary, any further refer-
   ence should be made to it here, but relies
   on your judgment, after a full considera-
   tion of all the circumstances, to effect
   that arrangement which may be the most
   advantageous to all parts of the colony.
   Should your departure from Australia
   occur before an arrangement can be effect-
   ed, Dr. Campbell, who will remain at
   Sydney and Melbourne for some time, is
   authorised to act on behalf of this Govern-
   ment, either at the Congress of Delegates,
   or otherwise, as occasion may require.

8. The Government of Victoria has ac-
   cordingly been informed that you, or in
   your absence Dr. Campbell, will represent
   the New Zealand Government in this mat-
   ter.

9. In concluding any contract it should
   be borne in mind, that with a view to any
   necessary modification of the terms, the
   contract should not be taken for a longer
   period than twelve months; nor must the
   cost of the Inter-Provincial Service ex-
   ceed the sum of £10,000, being the
   amount voted for that service.

10. It remains to observe that the Go-
    vernment of Victoria may possibly have
    been led to expect, or may for other rea-
    sons desire, that Melbourne should be the
    port of arrival and departure for the New
    Zealand branch service; as this, for the
    reasons stated in paragraph 4, would be
    disadvantageous to New Zealand, it must
    be insisted that Sydney is to be the Port.
    On this question, Tasmania and South Aus-