13

P.—2.

Copt of Tbeasury Minute, dated Ist August, 1874. Mi Lords have again before them the contract, dated Bth July, 1874, between the PostmasterGeneral and the Peninsular and Oriental Steam Navigation Company, for the conveyance of the East India, China, and Japan mails. My Lords have also before them the minute of the Board of 13th July, 1874. These two papers have already been laid before the House of Commons. Their Lordships' attention is particularly directed to the Bth, 17th, 18th, 19th, and 20th clauses of the contract. Their Lordships have also before them an amended contract between the same parties, and for the same object, dated Ist August, 1874, in which words have been inserted in the clauses referred to, specifying more particularly the time to be allowed for passages between certain ports on the respective voyages, and providing that all the penalties payable under the amended contract shall be increased as provided, therein, and shall be absolute except in cases of shipwreck and damage to machinery. My Lords consider that the amendments proposed are advantageous to the Public Service, although they are aware that it was distinctly understood that the terms of the contract of Bth July, 1874, would be construed as binding the Company to the time-table now more specifically set forth. They are pleased, therefore, to approve of the amended contract now submitted to them, and they desire that a copy of the amended contract, together with copy of this minute, may be laid on the table of the House of Commons.

Memorandum: by the Postmaster- General relating to the foregoing Contract. The following are the only points in which the contract with the Peninsular and Oriental Steam Navigation Company of the Ist August, 1874, differs from the contract executed on the Bth July, 1874, and now on the table of the House of Commons. In clause 8, the number of hours to be allowed for the carriage of the mails over several of the routes, omitted in the first contract, are inserted in the second. In clause 11, the provisions with respect to stranding in the Suez Canal are made applicable to voyages out and home. In clause 19, the penalties imposed for failure to perform within the appointed time the voyages from Bombay or Point de Galle to Brindisi, are extended by the second contract to the voyages from Calcutta or Shanghai to Brindisi, and the amount of such penalty is in each case quadrupled. Further, the penalty is made absolute. Clause 20 in the second contract applies to the routes between Hong Kong and Yokohama, and between Bombay and Shanghai, the same quadruple penalty which is fixed by clauses 17 and 18 to other routes, and makes the penalty absolute. General Post Office, Ist August, 1874. John Manneks. By Authority : George Didsbubt, Government Printer, Wellington.—lB7s. Price 9d.]