E.—No. 2

PAPERS RELATIVE TO THE

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£ Victoria, l-4th ... ... ... ... = 13,750 New South Wales, l-4th ... ... ... = 13,750 New Zealand, l-4th ... ... ... ... = 13,750 Queensland, l-7th ... ... ... ... = 7,858 South Australia, l-12th ... ... ... = 4,584 Tasmania, l-50th ... ... .... ... = 1,100 If, therefore, during the provisional arrangement, the Colonies of New South "Wales and New Zealand take upon themselves the payment of the Imperial moiety, the contributions will stand thus :— New South Wales ... ... ... ... ... 41,250 New Zealand ... ... ... ... ... 41,250 Victoria ... ... ... ... ... ... 13,750 Queensland ... ... ... ... ... 7,858 South Australia ... ... ... ... ... 4,584 Tasmania ... ... ... ... ... ... 1,100 But these proportional contributions included the provisions for the branch services connected with this line. These branch services would be as follows :— £ Wellington to Melbourne ... ..... ... say 6,000 Sydney to Brisbane ... ... ... ... ~ 2,400 Melbourne to Adelaide ... ... ... „ 2,400 Melbourne to Tasmania ... ... ... „ 1,000 £11,800 to be defrayed out of the common fund. The proportion of the non-contracting Colonies, supposing the whole of this portion of the subsidy was credited to them, would be —■ £ Victoria, l-4th ... ... ... ... ... = 2,950 Queensland, l-7th ... ... ... ... = 1,685 South Australia, l-12th .... ... ... ... = 983 Tasmania, l-50th ... ... ... ... = 236 If therefore, these branch lines were not carried into effect during the provisional arrangement, and each Colony obtained its letters by the earliest opportunity, the proportion of each, founded on the joint agreement, would stand thus— £ Victoria ... ... ... £13,750 — £2,950 = 10,800 Queensland ... ... ... 7,858 — 1,685 = 0,173 South Australia ... ... 4,584 — 983 = 3,001 Tasmania ... ... ... 1,100 — 236 = 864 £21,438 Mr. Boucaut submitted the following Memorandum : — ■ • " If New Zealand is entitled to interior contribution for the Panama service, so is South Australia in an equal degree entitled to interior contribution for the cost of the King George's Sound branch service, which unjustly ignores her geographical position; although, in consideration of the general agreement assented to, South Australia waives her claim for any such interior contributions." Mr. Hall requested permission to withdraw the resolutions standing in his name in favor -of the following, moved by Mr. Ward: — That, until the amalgamated postal service proposed by the Conference shall be determined one way or other, it is reasonable and expedient that the Panama lino of mail steamers at present existing should be jointly made use of and supported, in addition to the Suez service, by all the Colonies. That it is desirable that the associated Colonies should use their joint endeavors so to arrange the Panama and Suez services as that the arrivals and departures of mails thereby at the several colonial ports shall fall as nearly as possible at equal intervals. That, in consideration of the varying circumstances and liabilities of the several Colonies, it is expedient that the contributions of the Colonies of Victoria, South Australia, Queensland, and Tasmania, should be fixed at the total sum of £12,000 per annum, in equal reduction of the sums paid by New South Wales and New Zealand respectively; and that the four first-mentioned Colonies should share such contribution between them in the following proportions, viz.:—Victoria, £9,000; Queensland, £2,000 ; South Australia, £550 ; Tasmania, £450. That the transit and. other incidental expenses of the conveyance of correspondence, and the cost of all branch services, should be borne by the Colony concerned in each case. Mr. Verdon moved the following amendment: — That pending the commencement of the new postal arrangements agreed to by this Conference, the Colonies which do not contract for the Panama service should contribute in proportion to the advantage thus derived from it, cither — Ist. On the understanding that the service be made to alternate with the service via Suez, and that the mails be delivered directly. 2nd. On the understanding that the service remain as at present. In either case the payments to be made either in proportion to the extent to which the non-contracting Colonies use the service, to be determined by the result, or iu fixed sum, to be agreed upon, in either case, between the contracting Colonies on the one hand, and the non-contracting Colonies individually on the other.