B.—No. 5

Bills connected with the proposed Railway in Southland, and express my satisfaction that the views expressed in my former communications have received a favourable consideration. I have, &c, J. A. R. Menzies, Superintendent. The Honorable the Colonial Secretary, Auckland.

No. 9. THE SUPERINTENDENT, SOUTHLAND, TO THE HONOEABLE THE COLONIAL SECRETARY. Superintendent's Office, Southland, 2nd June, 1863. Sir,— I have had the honor in various communications in the course of the past summer to draw your attention to the great importance to this place of the trade with the Whakatipu District. In February last the Provincial Government proposed to the Provincial Council that a Loan should be raised for the purpose of forming a Tramway or Horse Railway northwards from this place towards Whakatipu, but the opposition was so decided that it was felt that it would be imprudent to press tin; measure through the Council by the aid of a small majority, and the Loan Bill was withdrawn, a resolution being readily agreed to at the same time that £20,000, if such a sum was available in the Treasury, would be applied to keep the North Road open throughout the winter. This road is now a source of great expenditure for a few miles out of Town, and for reasons stated in my letter of 4th February, it is obvious that until the Bluff Railway is in operation, there can be little hope of forming the road properly with broken stone. Under these circumstances, and seeing moreover that the experience of the winter is proving the anticipations expressed as to the condition of the road—a fact patent to all, I feel that it will be necessary to renew the proposal to the Council of raising a Loan to form a Railroad extending not more than thirty miles north from this. The line will be nearly a level, and inexpensive ; but prior to coming to a decision on this course, T am desirous to know whether your Government will be disposed to approve of the Province of Southland borrowing about £100,000 for this specific object. An Engineer of some experience and Contractor of great experience is confident that the line could be constructed with wooden rails, which he believes, from prior experience of such, would endure for seven years, at the cost of from £2700 to £3000 per mile, within six months from the commencement; and at even the present rate of traffic reimburse the whole cost within five years. I have, &c, J. A. R. Mekzies, Superintendent. The Honorable the Colonial Secretary, Auckland or Taranaki.

No. 10. THE HONORABLE THE COLONIAL SECRETARY TO THE SUPERINTENDENT, SOUTHLAND. Colonial Secretai-y's Office, Auckland, 27th June, 1863. Sie,— I have to acknowledge the receipt of your Honor's letter of the 2nd instant, in which you request to be informed whether the General Government will be disposed to approve of the Province of Southland borrowing about One hundred thousand Pounds (£100,000) for the purpose of forming a Railway northward from Invercargill for thirty miles. In reply, I have to inform your Honor that the Government recognise the propriety of such a Loan, and are disposed to give a bill for that purpose their favourable consideration. I have, &c, Alfred Domett. His, Honor the Superintendent, Southland.

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