D.—No. I. A

November 1865 ; and that within a reasonable time after that date as may be absolutely necessary for the Company to commence the Panama line, and for the Government to make new arrangementsconsequent upon the Panama service—say not later than January Ist, 18(36, all the Company s lines now in operation may continue to be performed as at present. I need scarcely say, that it is the Company's interest to commence operations at the earliest possible period after the terms are finally agreed upon. I have, &c, I John Vine Hall. The Honourable Postmaster General, New Zealand. No. 5. Panama, New Zealand, and Australian Royal Mail Company, (Limited,) Sydney, and New Zealand. Auckland, December 29th, 1804. Sir,— I send accompanying the letter—which I trust is sufficiently explicit—a proposal for the consideration of Government, which I would submit is but fair and reasonable and will certainly not " a S n receive a satisfactory reply from the New Zealand Government, the sooner can they complete their preparations. It was in England confidently anticipated that the Atlantic telegraph will now be a success. If so, New Zealand, by the Panama scheme, will be brought within 40 days, of England. I trust sincerely some satisfactory arrangement may be arrived at. Another proposal might (it has just struck me) meet all views Expunge Coleman Contract" altogether/say £100,000 instead of £95,000, and extend the five years to seven. I would advise this" but I do not believe the Company could make ,ends meet by any further concession. I have, ifec, John Vine Hall. The Honourable Postmaster General, New Zealand. No. 6. Auckland, December 30th, 1864. Dear Sir, — In acknowledgment of your letter of yesterday's date, I have the honor to state that there is now no misapprehension of your views, though I cannot see how an arrangement can be ntf'pcted should the Company adhere to the sums stated. I shall lose no time in endeavouring to ascertain what amount of assistance I may reasonably hope to receive from the different Provinces, and lrom the Australian Colonies, and having ascertained this, I shall be prepared to address you more definitely at an early date. With'respect to the concluding paragraph of your letter, I would State that there is no intention on the part of the Government to determine tne contracts during the recess More than t s I am not in a position to promise, but this, at least, I consider to he but an act of justice to the ComPan^ Yours, &c, J. Richardson. To Captain Vine Hall, Auckland. No. 7. Wellington, February Gth, 1865. Sir,— I beg herewith to hand you extracts from my last advices from the Directors of the Panama, New Zealand, and Australian Royal Mail Company, which I think will shew I have now sufficient power to treat with the New Zealand Government on the Panama question.

3

ESTABLISHMENT OF A PANAMA MAIL SERVICE.