7

Contract, and which may either facilitate the
arrangements you have been authorised to make,
or may, on the other hand, by specially naming
some agent for constituting the Branch Service,
prevent this Government from deciding wholly
upon the conditions of the service.

land under the recent Mail contract with the
Imperial Government. In accordance with
those views, it has been proposed to combine
the inter-Colonial service with the inter-Pro-
vincial communication between the several
Settlements, and to have both services per-
formed by the same steam vessels, and to in-
vite tenders in Sydney and Melbourne for
carrying this proposal into effect. But at the
last dates from Australia, no copy of the con-
tract entered into by the Imperial Government
had been received there, and until that neces-
sary information reaches the several Govern-
ments interested in the contract, no final steps
can be taken for the permanent establishment
of the Branch Service in New Zealand: in the
meantime, however, the gentlemen who repre-
sent this Government in Australia have been
authorised to enter into certain arrangements
for the present conduct of that service.
His Excellency's Government is therefore
unable to enter into a permanent contract with
the owners of the "William Denny" on the
same terms as that with the Provincial Go-
vernment of Auckland, or on any terms which
would confine the Steam Postal Service to this
Colony to one steamer, whilst it is not unlikely
that arrangements may have actually been
made on behalf of the Government for con-
ducting that service for the next twelve
months.
But as the Government is unwilling that the
Steam Mail Service between New Zealand and
Sydney should suddenly cease, at the very time
when it is established between the latter place
and Great Britain, they have to propose to you
that the same amount of subsidy hitherto paid
by the Provincial Government to the "William
Denny," and the existing conditions thereof
shall be continued for the period required to
make two trips of that steamer: Provided al-
ways that in the event of any other arrange-
ment for constituting the Branch Service under
the Imperial Mail Contract being effected before
the conclusion of these trips, the subsidy now
offered, or so much of it as shall not be due at
the time of giving notice, either here or in
Sydney, shall not be paid.
I have, &c.,
(Signed) W. GISBORNE,
Under Secretary.

J. A. Gilfillan, Esq.,
and
David Graham, Esq.,
Auckland.

3. Should, however, the Contract, when re-
   ceived, permit the Government of New Zealand
   to decide in this matter, it is desirable, from the
   difficulty which has been experienced in getting
   the Governments of the Australian Colonies
   to take action, that all the necesary arrange-
   ments for establishing the service should at
   once be made by yourself and Dr. Campbell
   on the general basis detailed in my letter of the
   20th ultimo, especially bearing in mind that
   the service must be productive of as equal
   an amount of benefit to all the Provinces as
   can be derived from the services of two
   steamers only, that being the maximum number
   which we believe can be subsidised for the sum
   voted by the General Assembly for a Steam
   Service.
4. Pending the existence of a permanent arran-
   gement, of this nature, the Government consi-
   dering that it would be most disadvantageous
   that steam communication between New Zea-
   land and Australia should, just when it has
   been established to the latter place from Lon-
   don, absolutely cease, owing to the termination
   of the contract with the "Wm. Denny," and
   that without a subsidy she would be placed on
   another line, has made an engagement, (a
   copy of which is enclosed) with the agents of
   that vessel to run two more trips on the
   same terms as heretofore, under her contract
   with the Provincial Government, subject to a
   proviso for the cessation of the subsidy, should
   Dr. Campbell and yourself have succeeded in
   establishing the Branch Service, or do so before
   these trips have been made.
5. Should you therefore have entered into any
   contract when you receive this, or should you
   do so before the two trips have been made, you
   will give immediate notice thereof to the agents
   of the "Wm. Denny" in Sydney, and forward
   to this Government a copy of the notice served.
   I have, &c.,
   (Signed) E. W. STAFFORD.

The Hon. Henry Sewell, Esq.
*NOTE. The Auckland contract with the
"William Denny" expired on the 25th De-
cember.

Colonial Secretary's Office,
Auckland, Dec. 17th, 1856.

GENTLEMEN,-

With reference to the interview which took
place this morning between his Excellency's
Government and yourselves on the subject of
the Steam Postal Service between this Colony
and Australia, I am now desired by the Colo-
nial Secretary to address you to the following
effect.

You have been made generally aware of the
views entertained by His Excellency Govern-
ment with regard to the Branch Service to be
established between Australia and New Zea-

Wellington Chamber of Commerce,
24th November, 1856.

SIR,-

Enclosed I do myself the honor to wait upon
you with two Memorials addressed to His Ex--
cellency the Governor on the subject of the
contemplated postal arrangements.

I beg léave also to bring under the notice of
His Excellency's Government the following cir--
cumstance in relation to the mail service which
has just occurred. On the 5th instant, the
ship "White Star" arrived in Port Phillip withs