H.—l7

13

that effect, determine this contract, and thereupon the Contractors hall not be entitled to any subsidy for the service under this contract for such twelve months. 27. The Government will pay to the Contractors the subsidies following, chat is to say,— (1.) At the expiry of the period of twelve months from the date hereof (if the Contractors shall not have exercised the power of determination provided for in the preceding paragraph) the sum of thirty thousand pounds (after making the deductions or additions, if any, authorised by this contract) : (2.) During the residue of the said term of three years, a subsidy at the rate of £30,000 per annum payable proportionately on the departure of each steamer on each voyage from the final loading-port in New Zealand. 28. This contract shall not be assigned, underlet, or disposed of unless the consent of the Government (by some Minister thereof) in writing has been first obtained. 29. From all the provisions of this contract there shall be excepted the act of God, the King's enemies, restraints of princes rulers or people, fire, shipwreck, and dangers and perils of the sea and of navigation of every kind. 30. Any notice which may be given to the Contractors under the provisions of these presents shall be deemed to have been duly served if it has been sent to the Contractors or to their agents at the port of departure by registered post, addressed to the Contractors' or their agent's last known place of business. 81. Any right, power, authority, or privilege conferred on the Government by this contract may be exercised or enjoyed by the Minister of Industries and Commerce for the time being, or the person from time to time performing the duties of that office, and any written instrument or notice required to be served upon or given to the Government under or in pursuance of any provision herein contained shall be deemed to have been regularly served or given if the same is delivered or given to such Minister, unless express provision is made to the contrary. 32. The Government may at any time, and from time to time, delegate all or any of the powers vested in them by virtue of these presents to such person or persons as they may think fit. 33. If any doubt, dispute, or difference of opinion touching any matter arising out of this contract, or in anywise connected therewith, shall arise between the Government and the Contractors the same shall be referred to arbitration in accordance with the provisions of " The Arbitration Act, 1890," of New Zealand. 34. This contract shall be subject to confirmation by the New Zealand and African Steamship Company, which confirmation shall be obtained within three months from the date hereof, otherwise this agreement shall be cancelled and determined. As witness the execution hereof by the parties hereto. j. G. Waed, Minister of Industries and Commerce. Kinsey, Babns, and Co., As Agents for the New Zealand and African Steamship Company. Signed in the name and on behalf of His Majesty the King by the Honourable Sir Joseph George Ward, K.C.M.G., Minister of Industries and Commerce, in the presence of—Lbod. G. Eeid, Solicitor, Wellington, N.Z. Signed by Messrs. Kinsey, Barns, and Co. as Agents for the NewZealand and African Steamship Company. C. P. Skebeett, Solicitor, Wellington, N.Z.

B.—ANNUAL BBPOET OF THE NEW ZEALAND PEODUCE COMMISSIONEE IN LONDON. Westminster Chambers, 13, Victoria Street, London, S.W., Sir,— 15th April, 1903. I have the honour to submit my annual report on the work done by me as Produce Commissioner during the past twelve months. Bepoets. As in previous years, reports on matters affecting the several lines of produce exported from New Zealand to this country have been regularly made by me, and forwarded to the colony. Of these fifty-three were submitted, the subjects treated being of great variety. Included were the following : Mutton, lamb, beef, butter, cheese, wool, tallow, hemp, cocksfootseed, poultry, feathers, eggs, fruit, and fruit-pulp. Special reports were also made on milkblended butter, colonial exhibits at dairy show, Siberian butter trade, fraudulent meat-sales, condemned mutton-consignments, distribution of New Zealand meat, defrosting of New Zealand meat, standard grain samples, South African cold-storage, and War Office contracts. Cablegeams. Weekly cables have been sent to Wellington giving the prices for the various lines of New Zealand produce, together with information concerning the state of the markets therefor in this country. This year the particulars supplied by these cables have been to some extent increased, and new items of interest have been furnished. Statistics of the quantities of meat and dairy-