B.—No. 3a,

Sub-Enclosure No. 3 in Enclosure No. 2. AftBEEMENT BETWEEN THE PROVINCIAL GOVERNMENT OF SOUTHLAND AND THE BANK OF NEW SOUTH WALES. Superintendent's Office, Southland, 13th May, 1863 Memorandum of Agreement between the Provincial Government of Southland, and the Manager of the Bank of New South Wales here, relative to the negotiation of the Debentures of the Bluif and Invereargill Eailway, and to the necessary advances thereon. On behalf of the Provincial Government, the Superintendent agrees that (so soon as they can conveniently be prepared), the whole amount of the Debentures, one hundred and forty thousand pounds sterling shall be placed in the hands of the Bank Manager here, to be by him transmitted to the Branch Office of the Bank in London, and the Directors of the Bank, shall in conjunction with the Provincial Government Agent, John Morrison, Esq., place the same on the Stock Exchange, in order to dispose of them by Public Tender. Transit of the Debentures to be at the risk of the Provincial Government. The Agent of the Provincial Government aforesaid shall fix the minimum selling price at which the Debentures sball be disposed of, and shall be present at the opening of the Tenders. In the event of the realization of all or any of the Debentures, the Bank in Invcreargill immediately on receipt of the intelligence shall allow Interest on the amount at 5 per cent. (five per cent.) Advances on said Debentures to be made to Provincial Government here at 7 per cent., and to the authorised London Agent at same rate. Should the Debentures not be realised within twelve months after having been placed for sale on the Stock Exchange, the Bank shall retain as security for any advances made, an amount of Debentures at par, such as in the aggregate, shall cover said advances, and all interest accruing thereon, and shall hand the remaining Debentures to the Agent. "When the unsold Debentures shall have been given over to its Agent the Provincial Government will make arrangements for the taking up of those held by the Bank as security for advances made by them. On receipt of funds the Bank to |>ay all Interest on Debentures, and Debentures themselves when due, charging -V per cent, on the transaction. Rates of Exchange to be ordinary rates. Commission, brokerage, and charge for negotiation 1 per cent. J. A. B. Mexzies, Superintendent. Enclosure No. 3. STATEMENT OF EXPENDITUKE BY PEOYINCE OF SOUTHLAND FROM 24TH JUNE 1864 TO 31ST JANUAEY, 1865. Statement of Amounts paid on account of the Provincial Government of Southland, from 24th June, 1864, to 31st January, 1865, both days inclusive. Payments under arrangements between the General Government and His Honor the Superinteadent: — £ s. d. To Bluff Harbour Eailway Contractors 22,065 4 9 " Oreti " " 15,334 6 2 " Eailway Station " 3,873 1 8 " Eoads and Bridges Department " ... 2,069 6 6 " Freight on Eailway Plant ... ... ... 4,757 17 5 " "Wages and Salaries of Eailway Department ... ... 1,010 3 4 " Expenses " " " 442 6 4 "• Drafts against Eailway Pkuit 9,035 9 11 " Harnett and Co.'s account Printing Contract ... ... 209 3 9 " Captain and owners of " Sevilla" account, Immigration Department 1.113 0 0 59,999 19 10 "■ Payment on account of Stewai-t's Inland. 2,000 0 0

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