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No. 3. The A gent-General to the Hon. the Minister for Immigration. Sir, —• 7, Westminster Chambers, London, S.W., 10th September, 1878. In continuance of my previous reply to your letter of the 16th April, No. 75, on the subject of a direct steam service to New Zealand, I have to report that I have been in negotiation with several persons on the subject, and that I am disappointed I have not before this been able to communicate to you a direct proposal. Mr. Peter Denny and Mr. James Galbraith are preparing elaborate plans and estimates, but I regret to say lam not able to send the result out by this mail. Mr. Galbraith informs me he cannot be ready in time. I hope to be able to telegraph you the substance of the offer shortly In company with Mr. Larnach I saw one of the partners in the extensive and wealthy firm of Messrs. Green, and he promised us to submit a proposal, but he has not yet done so. We also saw Mr. Stringer, and he led us to believe he would make a further communication, but he has not yet done so. I also saw Mr. Anderson, one of the partners in Messrs. Anderson, Anderson, and Co., the founders of the Orient line. He seemed inclined to telegraph to his brother, who is now in Melbourne, to go on to New Zealand to see you. You may be sure I will not lose sight of this matter. I cordially agree with your own estimate of its importance to New Zealand. Excepting Mr. Galbraith and Mr. Denny, the other gentlemen proposed using steamers already built ; but Mr. Denny and Mr. Galbraith were of opinion that special, steamers, of not less than 5,000 or 6,000 tons, should be built for the purpose. My own opinion is that a line could only be made successful by the use of large and suitable steamers, and I believe it is difficult to exaggerate the benefit to the colony of a really first-class rapid steam communication. I have, <fee, The Hon. the Minister for Immigration, Julius Vogel, Wellington. Agent-General. Note.—This letter was published in D.-2, page 6, 1879.

No. 4. Sir Julius Vogel and Mr. Lanabch to the Hon. J Macandrew Sir, — 7, Westminster Chambers, London, S.W., sth December, 1878. In continuation of previous correspondence between you and Sir Julius Vogel on the subject of a direct steam service to New Zealand, we now have the honor to forward to you herewith the copy of a letter and enclosures received by Sir Julius Vogel from Mr. Galbraith, and separately a tin case of plans. We have jointly had several interviews with Mr. Galbraith and Mr. Denny The line these gentlemen propose will be equal to, probably superior to, any other line afloat. We think a service of the kind would be of enormous value to New Zealand. If the cost is too heavy a service every three months might be performed with two steamers. Probably the terms proposed would be relaxed if the Government give us authority to conclude an arrangement. We have, &c, Julius Vooel. The Hon. J Macandrew, Wellington. W J M. Laeach.

No. 5. Mr. James Galbeaith to the Agent-Geneeal. Sib, — 15, St. Vincent Place, Glaswow, 3rd December, 1878. I have now the pleasure to hand you tracings of designs for the class of steamers which. Mr. Denny and I think adapted to meet the requirements of the proposed service of direct steam communication between this country and New Zealand. These designs are, of course, subject to, and will receive the benefit of, further consideration and any suggestions which may be offered by the Government of New Zealand or others intrusted in the contemplated service. I have to express regret that what you may look upon as a somewhat unnecessary delay has taken place in this matter, but much time was neeeful in giving thorough consideration to the best means of fulfilling the several requirements of such a service, and in designing vessels capable of efficiently carrying these out. I enclose copy of communication addressed to me by Mr. Denny's firm, giving a full description of the steamers proposed for this service, which, with an average speed at sea of 12i knots, will make the outward voyage via the Cape of Good Hope in forty-two days, and the homeward voyage via the Suez Canal in forty days. I have gone very particularly into the details connected with the cost of working such steamers doing the voyages out and home in the periods of time mentioned; and I have made estimate of the income likely to be derived from passengers and cargoes. The accompanying statements appertaining thereto show the results arrived at. The rate calculated upon for first-cabin passengers is rather in excess of that at present charged by the steamers from England to Melbourne, but is relatively lower if the superior accommodation is taken into account. The number of and rate for third class passengers outward (emigrants) 1 am assuming the New Zealand Government will guarantee, modified from time to time by the number that may be offering of emigrants paying their own passage. I do not know what the views of the Government on the matter may be, but I apprehend that, for some time at least, an alternate month's service will meet requirements. At all events such is, in my opinion, quite as much as the colony can support in passengers and cargo towards realizing the data upon which my estimate of income is founded. By this arrangement only two full cargoes of wool per annum would be obtained ; during the remainder of the year the steamers would have to depend chiefly