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tion on the part of the Australian Colonies in this undertaking, still, the Government of New South AVales is fully prepared to act in concert with the Government of New Zealand in carrying out the contract, even if no assistance be extended to it by the neighbouring Governments. But it is thought, from the favorable views conveyed to Dr. Featherston in your letter of 27th March last year, that it is a step not less due to you than to the interest of this Colony, to submit the matter as it now stands, for tho further consideration of the Government of Queensland. I have, Ac, The Hon. Colonial Secretary, Queensland. Henbt Paekes. Enclosure 6 in No. 41. Copy of a Letter from the Hon. Colonial Seceetaet, Queensland, to the Hon. Colonial Seceetaet, New South Wales. (No. 66—152.) Colonial Secretary's Office, Sic, — Brisbane, Queensland, sth July, 1866. I have the honor to acknowledge the receipt of your letter of the 18th ultimo, submitting for the consideration of this Government, the subject of the Steam Postal Service between the Australian Colonies and Europe via Panama, which has recently been established, and further expressing a hope that this Colony will not be indisposed to bear a proportionate share of the expense of maintaining this new service. In reply, I have to inform you that this Government is not in a position to take any action in furtherance of the mail service above referred to, as the question of the Torres Straits route is one more immediately affecting the interests of Queensland, and to such this Government deems itself at present more specially pledged. I have, Ac, The Hon. Colonial Secretary, New South Wales. E. E. Mackenzie. No. 42. Copy of a Letter from the Hon. E. W. Staffobd to the Hon. H. Paekes. (No. 321.) Colonial Secretary's Office, Sic,— AVellington, 3rd October, 1866. I have the honor to acknowledge the receipt of your letter No. 66-85, of the Ist ultimo, returning the draft Articles of Agreement between the Colony of New South Wales aud New Zealand, relative to the Panama Steam Postal Service with certain amendments. This Government agrees substantially to those amendments, and an early opportunity will be taken to forward to you an instrument embodying the terms of agreement assented to between both Colonies, for execution by the Government of New South AVales. I have to express my regret that it should have appeared to you that any course suggested by me evinced a disregard of the interests of New South AVales in connection with the Panama Steam Service, as this Government has always considered that the two Colonies, New South Wales and NewZealand, have an equal interest in the success of that service. As that success would, however, to a great extent, be promoted by securing the cordial co-operation of all the Australasian Colonies interested therein, the suggestions of this Government were made with a view of avoiding a hostile attitude towards those Colonies who are as yet not parties to the contract, but rather, by friendly consultation, of inducing them to recognize that their interests, and especially those of A'ictoria required a definite agreement to be made with them for the transmission of their mails. If, however, as I infer from your last letter, those Colonies are so indifferent to the subject as to decline to enter into any such agreement, they must inevitably be subjected to the disadvantages which its absence will entail. In this matter the Government of New South AVales and New Zealand can have only one ultimate object; and, whatever differences of opinion may hitherto have existed as to the best means of attaining it, it is desirable that they should cordially unite in giving effect to those measures which they may both agree in believing to be most conducive to that end. The information to which you refer, in the ninth paragraph of your letter, as conveyed by telegram is incorrect. No mails, direct from Melbourne, except by the first steamer, the " Kaikoura," have been received here for transmission by r the Panama steamers, and strict directions have been given to the Chief Postmasters that no such mails are to be forwarded by the Panama mail steamers. Accordingly all such mails in future, if received in New Zealand, will be sent to Sydney for transmission thence, so soon as the necessary payment for their conveyance is made. It affords this Government much pleasure to reciprocate the anxiety expressed by His Excellency Sir John Young, on behalf of the Government of New South Wales, to continue in association with New Zealand in carrying out this important service, which we earnestly believe will largely promote the best interests and beneficial influence of the Colonies by which it has been established. I have, Ac, The Hon. the Colonial Secretary, New South AVales. E. W. Staffobd. No. 43. Copy of a Letter from the Hon. E. AY. Staffobd to the Hon. H. Paekes. (No. 320.) Colonial Secretary's Office, Sic,— Wellington, 3rd October, 1866. With reference to my letter No. 260, of the 13th August last, to which I have not been favored with any reply, I have now the honor to enclose a statement of account, showing the further

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