"Generally speaking, these stipulations have been fulfilled, as appears from a return which has been laid before us by the Surveyor of the Navy, showing the number, tonnage, and power of the vessels constructed by the various companies under contract with the Admiralty for the conveyance of the mails, distinguishing those built of wood from those built of iron, and stating whether the companies have in any cases violated the terms of the contracts, and if so, whether any authority has been given by the Board of Admiralty for the deviation. It results from this return that out of 98 vessels which had been surveyed by the Government officers, one only (the 'Australian') has been reported as incapable of carrying guns if required, and two iron vessels (the 'Levantine' and the 'Petrel') have been accepted instead of wooden vessels, on Mr. Cunard's Halifax and Bermuda line. Two other vessels--one belonging to the Australian Royal Mail Company, and the other to Mr. Macgregor Laird's West Coast of Africa line--had also been accepted (temporarily) by Admiralty authority, although of less tonnage and power than the contracts prescribed. "The Surveyor's report upon most of these vessels, as regards their fitness for war purposes, is in the following terms: 'Not fitted for armament, but capable of carrying guns when so fitted.' This report accords with the opinion expressed by the Committee of Naval and Artillery officers upon the vessels which have come under their notice. It appears, however, from the statements of that Committee, that although the packets they have examined are for the most part of sufficient strength to carry and fire a certain number of guns, the expense of the alterations which would be necessary before they could be got ready for service would be very considerable, and that even when such alterations had been made, the efficiency of the vessels would be very small in proportion to their size, and that they could not encounter hostile vessels of equal tonnage without endangering the honor of the British flag.