HUTCHISON, Minister of Interior to Wm. M. Neilson, October 25, 1870

[Untitled]

Sir: In answer to your communication of October 24, touching the Australian steamship question, I have to say that the minister of finance, in whose department the matter more immediately rests, is out of town at present, and the attorney general is on the eve of departure, but I have consulted informally with His Majesty the King, and the minister of foreign affairs, and they concur with me, as I have no doubt will the minister of finance on his return, in saying that it is the intention of government to pay in good faith the subsidy recently voted by the legislature to a line of steamships running hence to the New Zealand and Australian colonies, which shall remain here sufficient time to take cargo which is ready for shipment, and which shall take the cargo at such rates as shall not render it impracticable for producers to avail themselves of that mode of transportation. You are not to understand that we propose to dictate the price of freight, but will pay the subsidy, if our people are able to avail themselves of the opportunity.

With regard to wharfage and other facilities, we see no reason why the same privileges should not be accorded as are now given to mail steamships arriving at this port.

Communications have already been addressed to the minister of finance by Mr. Hall, who is the pioneer in this business, whose efforts the administration regard most favorably, and feel that he (Mr. H.) has strong claims upon it for consideration.

With regard to your second question, as you say, the law gives no authority beyond two years, and a further grant of the legislature would depend upon the value of the service rendered to the material interests of the country. We do not doubt that if it should be made apparent that new markets are opened and property in creased by this means, the legislature will be liberal in continuing grants, and the executive government will certainly deem it their duty to urge such a course upon them.

I have the honor to be, your obedient servant,