D.—No. 7,

As regards the monopoly, as it is termed, of the Peninsular and Oriental Company, and the complaint that the payment to them for the Australian service is too high, I haA'e only to remark that the present contract was entered into in consequence of the failure of another Company to perform the service; that that other Company not only discharged its duties very ill, but received a much larger subsidy than the Peninsular and Oriental Company; that no better arrangement than that which was entered iuto Avith the Peninsular and Oriental Company was open to the Government; that this arrangement is terminable at any time on six months' notice; and that if Mr. Hamilton, or any other gentleman, can bring forward responsible persons ready to give security for performing the Australian service as well as the Peninsular and Oriental Company, and upon lower terms, I shall be prepared to give notice to terminate the present contract, and thus to put myself in a position for receiving a tender from these persons. I have, &c, Stanley of Aldeeley. The Lords Commissioners of the Treasury.

No. 22. MB. FEEDEKIC HILL TO SIB F. BOGEBS. General Post Office, Sth May, 1863. Sir, — With reference to your letter of the 30th March last, I am directed by the PostmasterGeneral to return to you the enclosed Act of the Legislature of New Zealand, entitled "An Act for establishing Postal Communication Avith Great Britain by way of Panama," and to state to you, for the information of the Duke of NeAvcastle, that, so far as this department is concerned, there is no reason why this Act should not be left in operation. I have, &c, F. Hill. Sir F. Rogers, Bart., Colonial Office.

No. 23. SIB F. EOGEES TO ME. HAMILTON. DoAvning-street, 30th March, 1863. SlE,— I am directed by the Duke of Newcastle to transmit to you copy of an Act passed by the Legislature of New Zealand, the number and title of Avhich is stated in the margin, and I am to request that you will move the Lords Commissioners of the Treasury to inform his Grace whether they see any reasons Avhy this Act should not be left in operation. Extract of so much of the explanatory minute sent homo by Sir George Grey from his responsible adA'isers on the Acts of the Session as relates to this enactment is likewise annexed. I have, &c, Ebedeeic Rooebs. G. A. Hamilton, Esq., &c, &c, &c.

Enclosure 1, in No. 23. NEW ZEALAND.

ANNO VICESIMO SEXTO VICTORIA REGINJI. No. 16.

ANALYSIS. Title. i. Sums to be issued by Treasurer under Governor's Preamble. Warrant. 1. jShort Title. 5. Treasurer to be allowed credit for all sums so 2. Governor may make contracts. paid. 3. Governor may make arrangements with Australasian Colonies.

An Act for establishing Postal Communication with Great Britain bi/ ivai/ of Panama. [15th September, 1862.] Wheeeas it is expedient to establish postal communication'^Avith Great Britain by way of Panama, and that this Colony should contribute towards the accomplishment of the said object:

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