THE SAN FRANCISCO MAIL SERVICE.

Press, Volume XL, Issue 5885, 24 July 1884, Page 3

THE SAN FRANCISCO MAIL SERVICE.

The following is the " Hansard ' report of a short debate which took place on the above subject in the Legislative Council:— SAN FBANCISCO MAIL SERVICE. The Hon. Mr Stevens hoped the Post-master-General would be good enough to answer a question which he wished to put to him with regard to the provisions, in one particular, of the extended San Francisco mail service. The extension of the contract which had taken place was for two years, expiring either in November or December next, twelvemonth. The proportion which the colony was paying in the way of subsidy was .£31,250, aa against £18,750 paid by New South Wales. In fact, if the attempt to obtain from the United States a subsidy equal to one-third should be successful it would go injrelief of the contract, but, that attempt failing, the New South Wajes Government were in a position to give three months' notice, after the .expiration of the first twelve months, to determine the contract. He wished to ask whether a similar stipulation was inserted in the contract on behalf of New Zealand also? There was an impression that this colony was somewhat at a dieadvantage in this respect. His honorable friend would be able to say whether, in the event of the proposed subsidy or contribution from the United States of America being obtained, it would be shared in the strict proportions in which the subsidy was at present paid by the respective colonies P The Hon., Mr Oliver said his honorable friend, had correctly described the contract which .had been&ntered into for two years from last November. The contract provided that the contribution of New Zealand was and that of New South Wales, £18,750. The contract also provided that New South Wales might withdraw at the end of next November, unless the Pacific mail contractors had previously obtained, in aid of the payments from the colonies, a subsidy amounting to one-third of these payments. Up to quite recently it seemed very improbable that the contribution would be obtained, but recent advice from the Government Agent in San Francisco (Mr Creighton) showed a probability that the aid would be obtained from the I United States Government; and in that event, if the aid was given on the basis contained in the Bill, before Congress, which had met with Approval up to a certain stage, then the contribution, fully amounting to one-third, would tro to aid these subsidies, and would be divided equally between New South Wales and New Zealand, not in proportion to the respective contributions. The Hon. slr Stevens -would lite the Hoh the Postmaster-General to state whether this colony had a similar power of withdrawal as New South Wales. I The Hon. Mr Oliver replied that it had not. New South Wales, by giving three months' notice before the expiry of the first twelve months, might withdraw if the subsidy was not granted, but only in that ease, if the subsidy were granted by the United States, then New South Wales would have no option of withdrawing; but New Zealand had no such option of withdrawing. - The Hon. Mr Peacock—And we then pay the whole of it ? The Hon. Mr Oliver—Not a single farthifigmore than our contribution. Whether the Pacific Mail Company would consent to c«ry enthe service was another thing, but j the contract would hold them hable, and! they could be forced to carry on, or forfeit the bond, which was a very considerable The contract was set

yet signed, nor had the Ixmd been entered Jntojlrat Mr Elder, of Glasgow, had signified his readiness to become bondsman, and the bond had been sent to him for nature. The contract had aleo been sent t J the contractors to be signed. He might here state that he was not yet in a position to go oa with the business which he had expected to bring before the Cpuncil,and he had>therefore to move its adjournment until next day at noon.