“The mileage we pay them at present is estimated by the hydrographer at 8s. 0-1/4d. a mile and by the company at 7s. 9-1/2d. a mile (he measures the distance of the voyage out and back at 5,920 nautical miles, they at 6,084); but we pay the same company about 4s. 6d. a mile for the line to Lisbon and Gibraltar, and I think we are justified in offering the same payment for the Alexandria line. But in that case we must not tie them down as to size of vessels, for the lowness of the remuneration on the former line is explained by the contract not requiring the vessels to be more than 140-horse power. “To this department the size of the vessels is a matter of indifference, we care only that it be sufficient to secure speed; and we should stipulate only for a certain rate of speed. “If my proposition be adopted we should immediately signify to the parties that their tenders are not accepted, and make a communication to the Treasury. “I omitted to mention, that by directions from the Treasury we fixed the duration of the contract for which we demanded tenders, at three years; and also, that a reason for offering 4s. 6d. a mile may be found in the agreement made in May, 1845, by this same company, to convey mails between Southampton and Alexandria, in vessels of 280-horse power, as far as Malta; and of 180-horse power between Malta and Alexandria, for £15,525, which gives a mileage of about 4s. 6d. This agreement was entered into for only one year, since the company complained of its lowness, and declined, on that account, to make a formal and permanent contract at that rate; but they have continued it ever since, and it has been terminated by ourselves in May last. (Signed) “W. COWPER.” _Copy of a Memorandum by the_ Earl of AUCKLAND, _on the receipt of that of_ Mr. COWPER. MAIL CONTRACT TO ALEXANDRIA. “27th June, 1848.