D.—No. 1. A

No. 1. Panama New Zealand and Australian, Koyal Mail Company (Limited) Sydney, Melbourne, and New Zealand. Auckland, December 24th, 1864. Sir,— I have the honor to say that, with reference to the Panama Contract, this Company is prepared to make any reasonable modifications in it to meet the views of the Government of New Although I have no special powers to make new arrangements, I am able to state what the nature of those are which the Company would recog-nize. f The three Inter-Provincial services as mentioned in the Contract, and Clause 27, being objected to—the Company would, I believe, be prepared to waive these two points and carry out the Contract for the mails between Sydney and Panama, and vice versa, touching- at New Zealand, for the sum of £95,000 per annum, if allowed 30 days between Panama and New Zealand, (about 9 knots); or, for the sum of £120,000 per annum, if allowed only 27 days, or a 10 knot service. The dates of arrivals and departures, &c., to be arranged by Government. The Companv will also be prepared to give the fullest consideration to any other proposal, on the part of the New Zealand Government, which may enable them consistently to carry out the Panama Mail Contract. I have, &c, John Vine Hall, The Honourable Postmaster General, General Manager, New Zealand. ' P. N. Z. & A. E. M. Company. No. 2. Auckland, December 28th, 1864. Sir,— In reply to your enquiry relative to the "Coleman Contract," I beg to say, that looking ao-ain at the last communication received from the Company—written two days after I left London, and from the tenor of which I was enabled to state the money amount which might meet the difficulties of Clause 27, and the three Inter-Provincial services, I see no mention of the " Coleman

FURTHER PAPERS RELATIVE TO THE ESTABLISHMENT OF A MAIL SERVICE VIA PANAMA.