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PUBLIC RECORD OFFICE, LONDON

It is thought that under the proposed Canadian service, New Zealand will secure a fortnightly mail delivery at less cost than is at present paid for a disjointed monthly service, including a subsidy of 5,0007, (or whatever smaller amount may be desirable'; for the branch service between Auckland and Suva, Fiji. The amount at present paid for this monthly line appears to be 1,6907. per annum.

New Zealand may complain that at pre ent the main line steamers call at Auckland, whereas by this proposed service she is served by a branch line only. This may be true, but the steamers of the present American line merely call at Auckland for a few hours en route between San Francisco and Sydney, their detention being cut as short as possible, and it is impossible for the Canadian Pacific to give to both New Zealand and Australia a fast service by the mail lino steamers alone. If this fortnightly British lipe is established, it is thought the Imperial Post Office will cease to provide for the conveyance of mails between London and San Francisco. Could New Zealand, in such an event, afford to subsidise, by herself, the monthly American service?

In point of time New Zealand, by this new service, would be the most favoured of all the Colonies, ample margin being allowed for the transfer of mails, passengers and cargo at Suva.

The conveyance of mails by the Suez lines could therefore be

discontinued, saving postage.

Further, the vessels of the Union Steamship Company, a New Zealand corporation would have a direct share in this Pacific traffic which is now controlled by Claus, Spreckels, & Co., an American firm, and, this arrangement should result in a direct saving to the Colony,

It is understood that New South Wales does not desire to become a party to a new contract with the American line, in which event the entire cost of the service, if it were renewed, would fall New Zealand.

upon

AUSTRALIA—

Under the proposed new Suez contracts with the Orient and P. & (). Companies, the amount originally asked by each Company was virtually 100,0007. for ten years, but in their lafest amended tenders, it is said that these Companies have reduced their offer to 100,000/. each for a seven years' contract, and to 85,000. each for a 10 years' contract, for a service of about 34 days from London, via Brindisi and Naples, to

Adelaide.

Queensland at present pays 55,000 a year to the British India Steam Navigation Company for a service from Aden which delivers mails in Brisbane in about 44 days, and passengers in 7 days (the homeward voyage being three days longer), while according to the latest available reports (1885) of the Postmasters-General, New South Wales contributed 11,7607, Queensland 2,1607. 18. 3d., and Victoria 4,1777. to the San Francisco service.

The proportion which it is thought Australia might bear should, therefore, be forth- coming from the three Colonies of Queensland, New South Wales, und Victoria; and if Victoria refused to become a party to the contract, from the two former Colonies. Even if the Colonies were unwilling to give this amount for a postal subsidy, the Imperial, strategic, and passenger value of the proposed service, as alternate to those via Suez, is worthy of a small subsidy from each of the Australian Colonies,

The Colony that would, of course, derive the greatest benefit is Queensland. She would acquire a faster mail and passenger service than any one of the Colonies of Australia, and would consequently become, instead of the most remote, the nearest in point of time and distance to Great Britain and Europe. This would, without the slightest doubt, most materially assist in her settlement and development. connexion would be established with the Fiji and Hawaiian Islands, Canada, and the Direct United States. The pleasure-seeking public, who perhaps rarely visit Queensland at the present time on account of the difficulties of communication, would make Brisbane their port of arrival or departure. A great impetus would be given to the railway traffic, especially on the lines between Brisbane and Sydney; at the same time, first- class sea communication would be established between the two ports.

It has been shown that the British India Company receive a postal subsidy of 55,000/. a year for a service of 44 days and 57 days to Brisbane for mails and passengers respectively, and it is understood that they receive a further payment or guarantee on emigrant passages. While, from a commercial point of view, it may be politic to subsidise this line, it is surely of far more importance to Queensland to have this excellent Pacific mail and passenger service. The British India is an established line, and would not cease running were its postal subsidy somewhat reduced, nor would there

be any probability of rates of freight or emigrant passage being raised, since many cargo steamers run to Australia, and the Pacific line could if necessary carry emigrants from England at the present rate of 167. 16s. per head. As a mail service the British India

is practically useless; in 1885 only 42:38 per cent. of outward and 23:53 of inward letters going viâ Torres Straits, the bulk of the Queensland mails going by the Orient and P. & O. Companies. In 1885 net payment was thus made to New South Wales on account of mails by the Orient line of 6,5097. 11s. 7., uml to Victoria of 5,119/, 28. on account of the P. & O. line, or a total of 11,6587. 13s. 7d. in addition to the 55,0007. paid to British India.

By the establishment of this Pacific service affairs would be reversed, and Queensland, instead of paying out postages, would collect them from non-contracting Colonies.

As Sydney would be the terminal port of the line in Australia, and large disburse- ments would be made there, New South Wales would largely benefit from this source. In fact, the amount disbursed in the Colony would of course exceed the amount of the subsidy. Time for mails and passengers via Brisbane and rail, or via Brisbane and would be faster by Canada and the Pacific than by the contemplated Suez services.

The commercial development between the United States and Canada and New South Wales also calls for a Pacific line, which, however, be it remembered, cannot exist without a subsidy.

sea,

To Melbourne is offered the inducement of a mail service but slightly inferior in point of time and probably cheaper, and a passenger service a week faster than those via Suez. Victoria also has large commercial dealings with Canada and the United States, contributing, in 1885, 4,1777. to the San Francisco line for mails, and, further, cannot overlook the strategic and Imperial value of this proposed Pacific service.

Lastly, it is thought that this line of steamers, carrying the British flag each week through the island groups of the Pacific, would assist in the settlement of the Pacific Island question, and tend to render annexation by foreign powers of islands along the route impossible.

Australia desires to be master of the Pacific. Nothing will more assist the attainment of her desire than the establishment of this service.

No. 29.

PROPOSED CANADIAN MAIL SERVICE TO AUSTRALIA. MEMORANDUM circulated by CANADIAN REPRESENTATIVES.

The Canadian Pacific Railway Company offer to undertake a fortnightly mail and passenger service to Australia, to alternate with other mail services via Suez, in counexion with a fast Atlantic service for which the Government of Canada have advertised for tenders.

The service to be a fortnightly one cach way between Halifax or Quebec and Van- couver, British Columbia, and between Vancouver and Moreton Bay, Queensland, calling at Honolulu, Hawaiian Islands, and Suva, Fiji Islands.

The steamers to terminate the outward voyages and commence the homeward voyages at Sydney, New South Wales.

The Australian mails to be delivered and received at Moreton Bay, but mails for New South Wales and Victoria to be delivered and received at Sydney, if desired.

The New Zealand mails to be delivered and received at Suva, Fiji; the Government of New Zealand to provide the branch service between Suva and Auckland, (The Union Steamship Company of New Zealand now run a monthly mail service between New Zealand and Suva, and a monthly service between Australia and Suva.)

The maximum through time between Halifax or Quebec and Moreton Bay, to be 27 days, which, with a 15-knot Atlantic service, the lowest speed permitted under new tenders called for by the Canadian Government, will give through time between an English port and Moreton Bay of less than 34 days, which would in practice frequently be reduced.

Through time between England and Australia cannot be guaranteed until the details of the new Atlantic service are arranged.

With a 12-knot service between Fiji and New Zealand, time between an English port and Auckland would be less than 34 days.

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