A.—No. 1. SECTION 11.

Enclosure in No. 11. ME. PEEL TO SIB F. EOGEES. Treasury Chambers, 7th May, 1863. Sie, — The Lords Commissioners of Her Majesty's Treasury have had before them your Letter of the 30th March last, forwarding Copy of an Act passed by the Legislature of New Zealand, intituled, No. 16, "An Act for establishing Postal Communication with Great Britain by way of Panama." I am directed by their Lordships to acquaint you for the information of the Duke of Newcastle that they have had under consideration proposals made by Mr. E. Hamilton, on behalf of the Government of New South Wales, and by Mr. Crosbie Ward, on behalf of the Government of New Zealand, to the effect that Her Majesty's Government should assist in establishing a monthlv Mail to New Zealand vid Panama, by paying the cost of a Packet Service across the Pacific, and byagreeing to make no claim on the Colonies for the conveyance of the Australian and New Zealand Mails by the Packets between Southampton and Colon. Their Lordships have caused Messrs. Ward and Hamilton to be informed that this Board is unable to assist in the establishment of such a line, owing to the expense it would entail on this Country under the proposals above adverted to. With regard to the Act No. 16, passed by the Legislature of New Zealand, their Lordships see no objection to its being left to its operation. I have, &c, F. Peel Sir F. Rogers, Bart.

No. 59.

Vide p. 23.

No. 12. copy of DESPATCH fkom his grack the duke of Newcastle, k.g., to governor sir george GREY, K.C.B. Downing-street, 14th June, 1863. Sir,— With reference to the remarks contained in my Despatch, No. 2.3, of the 26th of February, respecting the Act of your Government " for raising a force for the internal defence of the Colony," I have the honor to transmit for your information the copy of a letter from the War Office, enclosing copy of one from the Horse Guards, stating the views entertained by His Eoyal Highness the Field Marshal Commanding in Chief upon the subject of this enactment. You will observe that His Eoyal Highness considers that the Act is a good one, but that he thinks that it would be advantageous if it was so far amended as to invest the Governor with power, under certain conditions, to increase the numbers of the force and to prolong its service on an emergency. I have, &c, Newcastle. Governor Sir George Grey, K.C.B.

Enclosure in No. 12. SIR E. LUGARD TO SIR F. ROGERS. War Office, 12th May, 1863. Sir, — With reference to your letter of the 30th March last, enclosing an Act, No. 32, passed by the Legislature of New Zealand " for raising a force for the internal defence of the Colony," I am directed by the Secretary of State for War to transmit to you for the information of the Duke of Newcastle the copy of a letter from the Horse Guards stating the views of His Eoyal Highness the Field Marshal Commanding in Chief respecting this Act. I have, (fee, Edward Lugard. Sir Fredk. Rogers, Bart., &c, &c.

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PAPEES EELATING TO