D.—No. 1. B

the postage on letters to the Australian Colonies was sanctioned from the month of July following1, and expressing- their concurrence in opinion with the Postmaster General that it would not be expedient, at least for the present, to entertain the proposal of the Peninsular and Oriental Steam Navigation Company to double the mail service between Point de Galle and Sydney. At a subsequent date to the above Minute, the proceedings of Mr* Crosbie Ward, the then Postmaster General of New Zealand, in entering- into a contract for a monthly service between Panama, Wellington, and Sydney, were, as my Lords have understood, disavowed by the Government of that Colony; and it now seems doubtful whether this service will be established. The question of a second service by way of Suez being thus re-opened, and objections having about the same time been taken to the measure for raising the postage without increase of accommodation, my Lords determined to suspend that measure, as well to give time for its beino- more maturely considered, as in order that if a second monthly mail, by way of Suez, should be about to be established, the two measures of raising the postage and doubling the communication might, if it should be thought expedient, come into operation at the same time. My Lords would now propose to communicate with the Secretary of State for the Colonies, according to the course .ecommended by the Postmaster General in his report of the 11th July 1863, but previously to doing so they desire to receive from Lord Stanley any remarks he may have to make upon the general subject or respecting Mr. Orosbie Ward's Colonial Contract, and they would also be glad if his Lordship would, if he should see no objection to thei nquiry, ascertain afresh from the Peninsular and Oriental Steam Navigation Company on what terms they would undertake the second service in question,—whether they would merely renew their offer of 1868, to establish it for an additional subsidy of £50,000 a-year —or whether they wotdd be willing to perform it for a smaller payment. Transmit copy of this minute to the Postmaster General for his Lordship's information and guidance. Enclosure 5 to No. 9. EXTRACT POSTMASTER GENERAL'S LETTER OF 19th SEPTEMBER, 1864. Under these circumstances it appears to me that the recommendations made in my letter of the 11th July, 1803, required some modification, and that it is not advisable at present to do more than communicate to the Governments of the several Australian Colonies and of New Zealand the offer made by the Peninsular and Oriental Company and the desire of your Lordships, if the second service be established, simultaneously to double the existing rate of postage from the United Kingdom to those Colonies : the right of your Lordships thus to raise the postage on letters despatched from this country, even though the additional monthly service be not established, being, at the same time, reiterated. I would suggest that each Government be requested to state, as early as possible, which arrangement they prefer, the present service, via Suez, once a month, with the existing rate of postage, or a service by the same route twice a month, with the increased charge on letters sent by packet and the reduced charge on letters sent by private ships ; on the understanding, of course, that the Colonies pay one-half of the additional cosr, as stated in mv letter of the 11th July, 1803. The Government of New South Wales, as your Lordships were informed by the letter from the Colonial Office which you 'orwarded to me on the 2?th ultimo, came to the determination, in April last, to raise, on the Ist July, to one shilling the half ounce, the postage of letters sent from that, (,'olony to the United Kingdom by packet, and to reduce to four pence the charge on ship letters ; and it is my intention to observe carefully the effect of this measure on the number of letters forwarded from New South Wales by each describtion of vessel. No. 10. MEMORANDUM FOR HIS EXCELLENCY THE GOVERNOR. His Excellency the Governor is respectfully requested to inform Her Majesty's principal Secertarj of State, in reply to the circular from the Colonial Office, dated 26th September, 1864, respecting the establishment of a second monthly communication between Great Britain and the Australian Colonies, via Point de Galle, it being understood that the existing rates of postage on letters would be doubled, that the Government of New Zealand would prefer that this service should remain as at present. J. Richardson, Postmaster General. General Post Office, Auckland, 29th December, 1801.

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PAPERS RELATING TO NEW ZEALAND MAIL SERVICE.