The Short Title of this Act shall be “the Panama Route Postal Act 1862.”

The Governor in Council may make such arrangements with the Imperial Government and may enter into all such contracts as may be deemed expedient for establishing and maintaining for a period not exceeding five years from the 1st day of January 1864 a regular and expeditious Postal Communication by Steam between this Colony and Great Britain by way of Panama Provided that the whole amount of the proportionate expense thereof to be borne by this Colony shall not in any year exceed the sum of thirty thousand pounds inclusive of all sums that may be paid or the carriage of Mails or for any other such service.

The Governor in Council may also agree with the other Australasian Colonies or any of them for their sharing in the benefits of such Postal Communication upon such terms as shall seem fit.

The Treasurer of New Zealand shall issue and pay a sum of not more than £30,000 in any one year to such persons for the purposes of this Act upon such days and in such proportions as the Governor by any warrant to be signed by him shall from time to time order and direct and every payment so to be made shall be charged upon and payable out of the Ordinary Revenue of the Colony of New Zealand.

The said Treasurer shall in his accounts from time to time be allowed credit for any sum of money paid by him in pursuance of any warrant issued by virtue of this Act and the receipt of the person to whom the same shall be so paid shall be a full and valid discharge to the said Treasurer in passing his said accounts for any such sum as shall be therein mentioned.