AUCKLAND.

Lyttelton Times, Volume VIII, Issue 490, 15 July 1857, Page 3

AUCKLAND.

The 'New Zealander' of June 10th gives the following resume of the results of the negotiations with the New South Wales Government on the basis of the propositions made by Mr. Wetton after his arrival in Sydney, when, it will be remembered, advices reached him from the Royal Mail Mail Company considerably modifying his former instructions. The original tender of the Royal Mail Company (for a rnaiu line between Southampton, Panama, and Sydney, and vice versd, via Auckland and Wellington, for £50,000) is now extended so as to include a branch line from New Zealand to Melbourne, should the Victoria Government require such line, at a total subsidy of £65,000. - . Sucli contract (in conseqvu awaiting Mr. Wetton at Syc to the ratification of the shari

in the Eoyal Mail Company, and also to that of ! the Colonial Parliaments contributing to the subsidy. Whichever service—'whether the originallyproposed, or the extended one—is established, the New South Wales Government to be the sole contractor with the Eoyal Mail Company, and to receive the proportions of the subsidy from the other subscribing Colonies, instead of those proportions being paid direct to the Eoyal Mail Company. The New South Wales Government invites the other Australian Governments to come into the project, and that of Victoria to say whether the branch line between Melbourne and New Zealand is wanted; in which case, the New South Wales Government will provide accordingly for a term of seven years. Such branch steamers to leave the Manukau for Melbourne on the arrival of the outward mail, and to take the homeward mail from Melbourne to meet the ocean steamer at Wellington on her return. Should the Victoria Government not require this branch line, the New South Wales Government to conclude the contract at the original tender of £50,000 a year for seven years,— Auckland being the port of arrival, and Wellington of departure, in New Zealand, for the steamers from and to Panama. The proportion of the total subsidy for New Zealand to pay (whether with or without the branch service to and from Melbourne) to be £15,000, subject to the approval of the General Assembly. Should the main (or originally proposed) service only be established, the New South Wales Government to have the power of negotiation with the other Australian Colonies for inter-colonial service from Sydney, and for their respective shares of the subsidy of £50,000 paid by New South Wales and New Zealand, —due care being taken, in such case, to guard the interests of New South Wales, as to the transit of mails through New Zealand, or New South v Wales to any colony not contributing to the subsidy.

On receipt of favourable replies from the other colonies, the New South Wales Government to enter into a provisional contract with the Agent of the Royal Mail Company, so as to obtain as early as possible the ratification of the English shareholders in that company, and to be able to bring the subject before the legislatures of New Zealand and New South Wales during their next sessions. In order to carry out these propositions, a conference of colonial delegates has been invited to meet in this month (June) at Melbourne; and should the proposals be agreed to at such conference, then the New South Wales and New Zealand Governments, at the next sittings of their respective parliaments, to propose the " appropriation" required to carry such contract into effect. As soon as the Provisional Contract has been exchanged, the Royal Mail Company to commence building vessels, so that the line may be at work in about eighteen months from that time. The New South Wales Government has communicated with the Home Government as to the propriety of its contributing to the subsidy, either directly, or by granting a fair proportion of the postal revenue received in England for mails sent by the Panama line ; but this reference home is not to interfere with the arrangements in progress in New South Wales for the service being established. We [are unable to say what arrangement the Government of Victoria may be willing to make; but we . find that the Chamber of Commerce in Melbourne is disinclined to join in the scheme proposed by New South Wales. At a meeting of that body on the Ist June, many exceptions were taken to the Royal Mail Company and its proposals, and resolutions were passed ' that any contract for the ocean steam postal service should be thrown open to public competition,' and that no scheme should be supported ' which does not make the trunk line come direct to Melbourne as a terminus.' Some of the Victorian journals also dwell upon the fact that two years must elapse before the Panama route is opened by the Royal Mail Company ; that during that period the time occupied by the route via Suez may be materially reduced ; that the isthmus may be cut through by a canal; and that, more than all, the Great Eastern may supersede both the routes in rapidity of carriage for letters. If the Victorian Government refuse to join the contract, it is still open for, New South Wales and New Zealand to establish the service. INTER-PKOTINCrAI. POSTAL SERVICE. As to this branch of the question we (' New Zealander') have to state that, after some negotiation with Mr. Bury (on the part of himself and the other owners of the Zingari), Mr. Bell's conditional offer was accepted by that gentleman, as follows :— That in the event of there being no eligible offer within fthree* months, * for the continuance of the service by means of two boats, the Government of New Zealand would gi%'e the Zingari, or other approved steam vessel, a subsidy of £5,000 for the first, and £4,500 for the second year, on condition of the Zingari ■' *at in thorough repair, and of a steamer being provided by the >f the Zingari, at the rate of £375

per month, while the vessel was undergoing repair. Otago to be included in this contract. (The < New Zealander ' here introduces an Auckland partizan sneer into its narrative.) Much correspondence and discussion took place between Mr. Bell and the acting partner in the Zingari, and also with'the Directors of the Australian Steam Navigation Company, as to the establishm ;nt of a two-boat inter-provincial service. Mr. Bury proposed to place a second boat on the line for a total subsidy of £10,000 or £11,000 ; but Mr. Bell did not feel himself warranted in holding out the prospect of a larger subsidy than £9,000 for such combined service. The terms proposed by the Australian Steam Navigation Company, as we showed the other day, were far beyond what Mr. Bell was authorised to entertain, although ; the directors freely exhibited to him all their calculations as to the cost of working. ! Mr. Bell endeavoured, we learnjto persuade the Company to send either the City of Sydney or the Wonga Wonga—both fine boats—to Auckland, on an experimental trip for the inspection of the New Zealand Government; but the Directors declined to do so unless they received a positive guarantee of the same rate of subsidy for the trip as the Denny had per month. As Mr. Bell could not give- this guarantee, the proposition fell to the ground ; and so, for the present, we must be content with a single steamer for our inter-provincial I service, unless the General Government should charter our little Wonga Wonga as the second steamer for inter-provincial communication; and, testing her by her recent voyage to Ahuriri in very tempestuous weather, we think the Government should secure her services until a larger and more powerful second boat than the Zingari can be obtained.