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abandon the beet-root cultivation, in ordor to secure a high price for some of the land, and that the interest of the colony would not be served unless a bona fide experiment for a certain number of years was entered upon. He thought, upon consideration, that they might be willing to come under terms to carry on the cultivation for a period of five years. Ho has undertaken to consider the matter more fully with Mr. Neville, and to see us agfiin at the end of the week, with a more definite proposal. We have, &c, The Hon. Julius Vogel, C.M.G. John Mackbell and Co.

No. 6. Mr. Heeitage to Mr. Mackeeli. 28, Nicholas Lane, Lombard Street, E.C., 10th July, 1875. Dear Sic, — New Zealand Sugar Company. Referring to the conversation which I had with you some days since on the subject of the manufacture of beet sugar in the Province of Otago, I beg now to be permitted, for the information of Sir Julius Vogel, to present my views upon the matter. I understand that Sir Julius is disposed to ask his Grovernrnent, whether they would make a free grant of 10,000 acres of land in the province to a company which would undertake to expend, say, £125,000 in the erection of manufactories, labourers' cottages, machinery, plant, and implements of agriculture, and to continue the cultivation of beet-root during a period of seven years. I think it is reasonable that the sum mentioned should be expended on the manufactories, &c, but I would submit that, with so considerable an expenditure, the undertaking to cultivate the lands might be restricted to five years, and that, with reference to the quantity of land to be put and kept in cultivation, it would be sufficient for all purposes to fix a minimum of 3,000 acres, though it is probable that the greater part of the 10,000 acres would be required, as beet-root can only be advantageously grown on the same land in every third year. Over the period and with the quantity of land mentioned, the experiment would be, I think, quite sufficiently tried. If it were successful, then obviously the cultivation would be extended: if not successful, it would be no doubt abandoned in less than the time mentioned. With reference to the position of the land, I would suggest that it should be as near the city of Dunedin as the land at the disposal of the Grovernment will admit of, and that it should be on or near the banks of a river. Ido not personally know the country, but I think it possible that the land near the River Taieri would be suitable for the purpose. It is of course of the highest importance that there should be easy communication with Dunedin, or with a railway in the vicinity. If the Government should entertain the proposal favourably, we should ask them in the first instance to grant the use of a comparatively small quantity of land, in order that the experiment of growing the beet might be tried, for the solution of the problem seems to be in that. There can, I imagine, be no doubt that sugar can be manufactured as well in the colony as elsewhere, and that, if good beet can be produced at a moderate price, a market will be found for sugar at a profit, provided of course that the undertaking which it is proposed to ask of the Grovernment with reference to duties be given. Perhaps, when you have again consulted with Sir Julius Vogel on the matter, you will favour me with his views. I have, &c, John Mackrell, Esq. Fredeeick Heeitage.

No. 7. Mr. Heritage to the Hon. Sir J. Vogel. Sic, — 28, Nicholas Lane, Lombard Street, 11th November, 1875. In the month of May last I had the honor to communicate with you on the subject of the formation of an extensive beet-root sugar factory in the Province of Otago, in the Colony of New Zealand, and lat that time submitted to you my views upon the subject; but the negotiatiations with reference to the matter were suspended in consequence of your departure from England. I shall be glad to be informed whether you would still be prepared to receive proposals and suggestions from me on the subject, with a view to the business being carried out. I have, &c, Sir J. Vogel, 7, Sussex Chambers, Victoria Street, Fbedebick Heritage. Westminster.

No. 8. Mr. Fox to Mr. Heritage. Sic,— - 7, Westminster Chambers, Victoria Street, Westminster, 12th November, 1875. I have the honor, by direction of Sir Julius Vogel, to acknowledge his receipt of your letter of: November 11th, respecting the proposed formation of a beet-root sugar factory in Otago, N.Z., as to which you communicated with him in May last, and asking whether he is still prepared to receive from you proposals and suggestions, with a view to the business being carried out. I am to inform you, in reply, that Sir Julius Vogel regrets that he is not now prepared to re-open the negotiation. I have, <fee, Frederick Heritage, Esq. E. Fox.