I am directed by the Colonial Secretary to inform you that as this Government desires to combine that service with the Inter-Provincial Steam Service in New Zealand, it has authorised the Honorable Henry Sewell, Esq., or in his absence, Dr. J. L. Campbell, lately a member of this Government, to represent its wishes at the proposed conference of delegates from the respective Colonies interested.

These Gentlemen have also been empowered to invite and accept Tenders on the part of this Government both for the Branch Service and the Inter-Provincial Service.

I have, &c.,
W. GISBORNE,
Under Secretary.

The Honorable
the Chief Secretary,
Melbourne.

Sydney, Nov. 4th, 1856.

Sir,—

On my arrival at this place I communicated with the Colonial Secretary on the subject of the Steam Postal Service. I found that no steps had been taken towards providing for the Branch Service to New Zealand. In order to move the question I left with the Colonial Secretary a Memorandum of which I transmit a copy, but to which I have not as yet received any reply. At a subsequent interview with his Excellency the Governor, I understood that the matter would be immediately taken into consideration.

In order to lose no time I put myself into communication with the owners of the William Denny, (through Captain Mailler,) and also with the Australian Steam Packet Company, and I learnt from them that they are desirous of undertaking the service. It will, however, be impossible to fix definite terms until the Contract for the Branch Service in connection with the main line shall have been decided.

I have indicated my individual preference for the following plan, which I recommend for the consideration of the New Zealand Government.

Two steamers to work the Branch Service in connection with the main line—to, and from Sydney—one to take the Mails monthly from Sydney to Auckland via the North Cape, thence to Wellington, and thence touching for a few hours, weather permitting, at New Plymouth—the other taking the converse route fortnightly, i.e. touching at New Plymouth, thence to Wellington, thence to Auckland and to return to Sydney via the North Cape. In addition to the above a small steamer of superior quality to the Zingari, to work between Nelson, Wellington, Canterbury and Otago, monthly, staying at each port a moderate time for passengers and cargo, and arranging so that the arrival at Wellington may be in time to meet the homeward Mail steamer.

If the William Denny and the Company would unite the service might be efficiently done. The William Denny, and the Wonga Wonga, (a vessel of greater power than the Denny,) would do the Service from Sydney, and the Bomerang, a small but powerful vessel would perform the Service for the Southern Settlements.

The cost of this would probably be about £15,000 or £16,000. Of this I suppose the General Contract would provide about £6000, leaving the residue to be borne by the Colony. In my opinion if such a Service were established, Auckland and Wellington, which would receive a greater share of benefit than the other Provinces, should contribute in an increased proportion, say Auckland £2000 a year, and Wellington £1500 a year.

The result would be a perfectly efficient Service monthly, and partly fortnightly, with direct access to the main line from all the Provinces, as well as communication between the Provinces themselves.

I think it would be better to regulate such a Service by fixed days of arrival and departure in preference to making it dependent on the accidental arrival of English Mails, as proposed by the Melbourne Government.

It is improbable that anything will be done before the next departure from Auckland of the William Denny, and I shall be obliged by your favoring me with the views and instructions of the Government in New Zealand, which I will endeavour as far as lies in my power to effectuate.

I have, &c.,
HENRY SEWELL.

The Honorable
The Colonial Secretary
Auckland.

For the Colonial Secretary of
New South Wales.

Memorandum by Mr. Sewell on the part of the New Zealand Government.