D.—No. 7

The tenders must specify the maximum number of days to be occupied on the voyages out and home, which must not exceed 55 days on the Avhole, exclusive of the transit across the Isthmus, and the times of arrival and departure must be so arranged as to alternate fortnightly with the Suez route. My Lords propose to allow a period of two months, say until the Ist of July, for the delivery of the tenders.

No. 12. THE EIGHT HONORABLE H. T. L. COBBY TO THE SECEETAEY TO THE TBEASUBY. Admiralty, 3rd May, 1859. SlE,—--1 am commanded by my Lords Commissioners of the Admiralty to request you will lay before the Lords Commissioners of Her Majesty's Treasury the accompanying draft tender, prepared in accordance with the instructions forwarded in your letter of the 20th ultimo, for the Australian Mail Service, vid Panama; and my Lords desire me to call attention to the circumstance, that no invitation is contained f herein for tenders for a service, subsidiary to the existing line between this country and Panama. I am, &c.j H. Cobby. The Secretary to the Treasury. TBEASUBY MINUTE ON THE ABOVE LETTEE. Refer to Postmaster-General. W. H. Stephenson. sth May, 1863.

No. 13. THE POSTMASTEE-GENEEAL TO THE TBEASUBY. General Post Office, 12th May, 1859. My Loeds,— I have examined the draft tender for the Australian service, vid Panama, referred to me on the sth instant, and have the honor to submit the following suggestions for your Lordship's consideration:— 1. That the blank left for the term of years should be filled up before the form is issued. 2. That in addition to the tenders for the Avhole service, tenders should be invited for so much of the service as lies Avest of Panama, as suggested in Mr. Corry's letter. 3. That an addition be made to the form of tender, Avith the view of securing the insertion of the number of days, as required by condition No. 9. 4. That the number of days allowed for the service should reckon to and from Port Adelaide ; tho draft tender names " Melbourne;" but I gather from your Lordship's Minute of the 19th April, that it was intended the time in question should include the whole service. Strictly speaking, this would comprehend King George's Sound; but I presume it is not your intention that the remote and comparatively unimportant Colony of Western Australia should be included in the scheme. I have suggested Port Adelaide, rather than Kangaroo Island, because, as South Australia would be the last Colony reached, there appears to be no reason for stopping short of its principal port. By allowing for the Panama route the same time for reaching Adelaide as is allowed by the Suez route for reaching Sydney, the tAVO routes will, I think, be brought fairly into comparison. I 5. But the most material point is the amount of the maximum time allowed. In naming 55 days, your Lordships have taken the time allowed for the Suez route, vid Gibraltar; but I would suggest whether, for the reasons stated in my report of the 4th of October, the time allowed should not be that required for the Despatch via Marseilles. This would reduce the maximum to 50 days; the route through France having proved someAvhat quicker than I anticipated. I have, Ac, COLCnESTEB. The Lords Commissioners of the Treasury.

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PANAMA MAIL SERVICE.