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addressed for transmission by another route, is included in the mails for Mexico, despatched hence to New York every Wednesday evening and Saturday afternoon. The time of transit from London to Salina Cruz is approximately thirteen days and a half. I am, &c, The High Commissioner for New Zealand. E. W. Farnall.

Enclosure 5 in No. 257. [Extract from Diplomatic and Consular Reports on Trade and Commerce in the Consular District of Mexico for the Year 1905.] Tehuantepec National Railway. Recognising the necessity of terminal ports at Salina Cruz and Coatzacoalcos, if the Tehuantepec route was to become a highway of the world's commerce, the Government entered into negotiations with the British firm of S. Pearson and Son (Limited), who had already carried to a successful conclusion two very large undertakings in Mexico—viz., the drainage canal of the Valley of Mexico and the port works at Vera Cruz—the result being that this well known firm of contractors undertook to bring the railway up to the requisite standard of solidity, and to construct harbour-works and provide all modern facilities for shipping at the terminal ports. In addition, the Mexican Government entered into a partnership agreement with the said firm for the joint exploitation of the Tehuantepec Railway and the ports of Selina Cruz and Coatzacoalcos for the period of fifty-one years, counting from the Ist July, 1902, this being probably the first instance on record where the supreme Government of a rich and independent nation has made such an arrangement with a firm of contractors, and is an eloquent testimony to the high reputation for integrity, efficiency, and business capacity which this British firm has acquired in the Republic of Mexico. The work undertaken by the contractors virtually amounted to the rebuilding of the railway, which is of the standard gauge of 4 ft. 8J in. The grades and curves have been considerably reduced, the ruling grade now being 1"6 per cent, compensated, except on Chivela Hill, where the gradient, with compensation, amounts to 2'B per cent. All the bridges have been substantially rebuilt, using steel trusses of modern type on concrete or masonry piers and abutments, whilst culverts of adequate capacity have been put in where required in solid masonry. A new five-span steel bridge, over 600 ft. long, has been constructed over the Jaltepec River, replacing the old structure, which had become too light for the new heavy rolling-stock and engines. New sleepers of creosoted pine, native hardwood, and Californian redwood have been laid down, all provided with steel tie-plates: and at the end of the year 1905 about 120 miles of line had been relaid with 80 lb. steel rails, the remaining 56 lb. rails being replaced by 80 lb. rails as rapidly as the latter arrived. At present date (September, 1906) about 156 miles have been relaid. The remainder of the distance from the 156 th mile to the 190 th mile being on the south end of the line, the drier portion, already laid with 56 lb. steel, and practically a tangent, good road-bed, &c, there is no necessity for any change to be made. At the end of 1905 the line had been ballasted with gravel and crushed rock, excepting miles. All this has now been completed. The tropical vegetation along the line is destroyed by the use of a special chemical which is sprayed from a tank car under steam pressure by means of an atomizer. The siding-accommodation at each terminal port will be nineteen miles. The company at present owns fifty-seven locomotives of standard American types, all of which have been adapted for burning crude oil as fuel. At present the oil is imported from Beaumont, Texas, but it is confidently expected that the local oil-wells will soon be able to supply more than all the oil needed. The oilfield is situated about thirteen miles from Minatitlan, on the main line, and the oil will be brought to the storage-tanks by pipe-lines. Capacity. xr Ilm w The rolling-stock at present consists of — Tons. iNumDer. Box cars (covered wagons) ... ... ... -j „- „_„ Stock cars (cattle-trucks) ... ... ... ... ] on __ v ' (30 50 d<l i 25 35 Hatcals --130 100 Gondolas (open trucks) ... ... ... ... 30 43 Tank cars ... ... ... ... ... 30 15 Cabooses (guards' vans) ... ... ... 21 Passenger-coaches ... ... ... ... 14 Officers' cars ... ... ... ... 5 Tourist car ... ... ... ... 1 Baggage, express, and mail cars ... ... 5 All the above rolling-stock is of American type, and in good condition.