D.—No. 7.

the group, numbering about 1,181,000 persons, was 2,155,500 letters, or less than tAvo letters per head of population per year. In other words, the population of New Zealand Avas 8 per cent, and its correspondence 16 per cent of the whole. The charge on New Zealand for the year ended 31st March, 1862, for its share of subsidy to the main line was nearly £10,000 out of a total on all the colonies of £67,336. This proportion Avas based on the correspondence of the year 1860, when the per-eentage of New Zealand was 11-6 of the whole. The introduction of the element of distance therefore raised the contribution to be paid by NeAv Zealand from IT6 to above 14 per cent. The application of the same process to later returns will give a proportionately increased charge as that to be made for the year now current. This charge is for the main line subsidy alone, and is quite irrespective of the cost of any branch line connecting New Zealand Avith Australia. To sum up this vieAV of the case, and to show at the same time with Avhat rightNNcrw r Zealand calls attention to her requirements, it follows from the foregoing figures, that a population numbering only 8 per cent, is liable to a contribution of little less than 20 per cent, for the general advantage, in Avhich it participates in a very inferior degree. The maintenance by the Imperial Government at a cost of £13,000 a year, of a branch service from Australia to New Zealand, without expense to the latter colony, has not been either forgotten or undervalued in making the foregoing observations, which are not effected by it. But it must be said that the Colony cannot look forward to much longer exemption from this additional burden, and already it is a charge of a more than equal sum each year to render this portion of its communication with Great Britain tolerably efficient. The Colony of Noav Zealand therefore urges that, in consideration of the serious postal disadvantages under which it now labours, and still more in expectation of its largely increasing requirements for the future, immediate steps should be taken to establish a monthly mail service, uniting it with Great Britain by the direct route vid Panama. In furtherance of this object, the colony undertakes to guarantee a contribution by Avay of subsidy, not exceeding £30,000 per annum, for five years, from the first January, 1864. And this guarantee is given without Avithdrawing from the engagement, together Avith the Australian Colonies, to contribute to the expense of the Suez service in proportion to the number of its letters carried by that route. Crosbie Ward, Postmaster-General and Special Representative of New Zealand, in the United Kingdom. London, 16th March, 1863.

Table (A.) Comparative Statement, showing the White Population, the Value of Imports and Exports, the Correspondence with the United Kingdom, and its Proportion to the whole Australian Correspondence, of the Colony of New Zealand, between the years 1857 and 1862 inclusive, compiled from Official Returns.

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PANAMA MAIL SERVICE.

LET :ers. YEAR. Number of White Population. Value of Imports I Value of Exports Number sent to and Received from the United Kingdom Per-centage on whole Australian Correspondence. .857 .859 860 861 .862 £77,900 5694 •58,788 98,394 £1,551,030 1,548,333 2,493,811 12,291,217 £551,484 588,953 1,370,247 t6S4,462 266,700 11-586 420,200 16314 * Census taken at the end )recedin| ear. t For six moi iths on! to 30th June, 1862.