The Australian Governments have held an Intercolonial Con- ference at
Sydney, chiefly to consider a very liberal offer made by Mr. Lowe in regard to their postal service. The contract with the Peninsular and Oriental Company for the service from Galle to Sydney expiring at the end of this year, the Treasury proposes in future to carry the Australian mails free of charge to Galle, and to subscribe £40,000 a year to the new service between Galle and Australia., which it is expected the colonies will con- tract for and conduct themselves. Mr. Lowe's proposal was made in a Treasury Minute dated last August, and considering that one of its conditions is that the colonies shall have the new steam service to replace the P. & 0. (if necessary) established by the end of this year, these negotiations appear to have been conducted hitherto with a considerable absence of energy. There is, it appears, a wrangle between Sydney and Melbourne as to which should be the terminus, and the question has been referred to the Queen in Council by the Governor and Legislature of New South Wales. The Australians ought to know Mr. Lowe almost as well as we do. He is not a man to be trifled with when he happens by any strange accident to be in a generous humour.
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