FURTHER PAPERS RELATIVE TO THE SUEZ MAIL SERVICE. (In continuation of Papers presented October 3rd, 1871.)

Appendix to the Journals of the House of Representatives, 1872 Session I, E-03

B.—No. 3

WELLINGTON. 1872.

PRESENTED TO BOTH HOUSES OF THE GENEBAL ASSEMBLY, BY COMMAND 01? HIS EXCELLENCY.

FURTHER PAPERS RELATIVE TO THE SUEZ MAIL SEEVICE. (In continuation of Papers presented October 3rd, 1871.)

SCHEDULE TO SUEZ MAIL SERVICE PAPERS.

So. Date. Writer and Subject. Pago. October 20, 1871 Earl Kimberley to His Excellency the Governor. Transmitting correspondence with reference to the Peninsular and Oriental Company's steamer calling at some port in South Australia. The Hon. J. Vogel to His Excellency the Governor. Memorandum on the proposal of the P. and O. steamers to call at Glenelg. Earl Kimberley to His Excellency the Governor. Transmitting correspondence relative to terminating the contract with the P. and O. Co. The Agent-General to the Hon. the Colonial Secretary. Transmitting correspondence received from the Colonial Office, relative to terminating the P. and O. contract. The Hon. J. Vogel to His Excellency the G-overnor. Memorandum, desiring that notice be given of withdrawal from P. and O. contract. The Hon. J. Vogel to His Excellency the Governor. Memorandum, enclosing draft for £4,000 on account of Suez service. Mr. Elliott to the Secretary, General Post Office, London. That New Zealand be credited with half the cost paid for conveying English Mails to and from Australia. Mr. Page to the Hon. the Postmaster-General. New Zealand credited with half the cost incurred for conveying English Mails to and from Australia. Mr. "W. Gray to the Secretary, General Post Office, London. Acknowledges No. 8. Earl Kimberley to His Excellency the Governor. Transmitting a Report from the Receiver and Accountant-General on the Post Office Mail Packet Service for 1872. j Mr. Gray to the Secretary, General Post Office, London. Pointing out an overcharge in Packet Service Account for 1872. 3 2 May 23, 1872 4 3 November 30, 1871 5 4 December 14, 1871 5 5 October 16, 1871 6 6 December 9, 1871 G 7 December 15, 1871 6 8 March 19, 1872 7 9 May 23, 1872 7 10 April 18, 1872 7 July 4, 1872 9 II

R—No. 3.

No. 1. The Right Hon. the Eael of Kimbeelet to Governor Sir G. P. Boweit, G-.C.M.Q-. Sib,— Downing Street, 20th October, 1871. You are aware that for some time past the Government of South Australia has been endeavouring to obtain an alteration in the arrangements with the Peninsular and Oriental Company, with the view of providing for the delivery of the South Australian mails at a port within the Colony. A correspondence, of which I enclose copies, has lately taken place on this subject between the Governors of New South Wales, Victoria, the General Post Office, the Agent-G-eneral of South Australia, and this Office. I have caused Mr. Dutton to be informed, in reply to his letter of the 30th ultimo, that, as this is a question affecting the interests of the Australian Colonies generally, it would be manifestly impossible for me to offer any opinion upon it without previously ascertaining the views of those Governments. I have accordingly to request that you will place yourself in communication with the Governor of South Australia, and that you will inform him whether your Government have any objection to offer to the proposals of the Company, as conveyed in their letter to the General Post Office of the 22nd of September, so far as the proposals affect the Colony under your Government. I have addressed a similar communication to the Governors of the Australian Colonies, and I have requested the Governor of South Australia to forward to me a copy of any communication he may receive from you on the subject. 1 have, &c, Governor Sir G. F. Bowon, G.C.M.G. Kimbehlet.

Partly published, vide Enclosures. Not published.

Sub-Enclosure <S to Enclosure in this letter.

Enclosure in No. 1. Mr. TiiLET to the Secbetaey to the Tbeasttet. Sib,— General Post Office, 27th December, 1870. I am directed by the Postinaster-Groneral to return herewith the papers referred to this Department on the 15th ultimo and 15th instant, respecting the desire of the Government of South Australia that some arrangement should be made with the Peninsular and Oriental Steam Navigation Company to provide for the delivery of the South Australian mails at a port within the Colony,— Holdfast Bay being preferred. Having represented the circumstances of the case to the Company, and inquired whether they were prepared to make the proposed call, and, if so, on what conditions, Lord Hartington has received, from them the reply of which a copy is transmitted with this letter. In it the Company state that the deviation of the route of their mail packets to Holdfast Bay would increase the annual mileage performed to the extent of nearly 4,000 miles, adding thereby a considerable sum to the expense of the service, and that they could not undertake it without an additional payment, at the same rate per mile as for the existing service. But even on these terms they hesitate to make the change without first ascertaining the feeling of the Colonies of Victoria and New South "Wales, which, from their more easterly position, would be injuriously affected by it, and they propose, therefore, to communicate at once with their agents at Melbourne and Sydney. Some time must necessarily elapse before the result of the Company's inquiries can be learned; and Lord Hartington would suggest that advantage be taken of the interval for asking the Governors of Victoria and New South Wales whether they haye any objections to offer to the proposal of South Australia. I have, &c, The Secretary to the Treasury. JonN Tillet.

Sub-Enclosures 1 and 2.

Sub-Enclosure 1.

Sub-Enclosure 1 in No. 1. Mr. Howell to the Secbetaky, General Post Office. Peninsular find Oriental Steam Navigation Company, Sib— 122, Leadenhall Street, E.C., London, 20th December, 1870. I have the honor to acknowledge the receipt of your letter of 2nd instant, stating that the Government of South Australia is desirous that some arrangement should be made with this Company for the delivery of the South Australian mails at a port within that Colony, and inquiring whether the Directors are willing to undertake this service, and, if so, on what conditions. In reply, I am desired to state that the deviation of the Company's steamers to Holdfast Bay, which would no doubt -be the -most convenient place for the colonists, would increase the annual mileage performed in the Australian Mail Service to the extent of nearly 4,000 miles, adding thereby "a considerable sum to its expense; while it is the opinion of the Directors that the navigation would involve considerable risks for steamers of the size and draft of water of those employed by the Company. Upon these grounds, therefore, the Directors must demur to the proposal that this additional

Not published.

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service should be undertaken without payment to the Company. They would at least require the same rate per mile as for the existing service. But, while the proposed deviation would directly involve an increase of some fifteen or twenty hours only at sea on each trip, it must be borne in mind that casual delays from making the land at night or in thick weather would not unfrequently be superadded to that disadvantage, so that the length of the mail voyage would often be increased by twenty-four hours, and occasionally by even a longer time. Looking to the importance of the interests in the other Colonies, and to the short interval for replies from New South Wales, even under existing circumstances, the Directors feel doubtful whether the detention of the mails, inseparable from the' proposed arrangement, would meet with public approval; and in these uncertainties on that point, thejr would be reluctant to act upon the suggestion contained in your letter. They will, however, communicate with their agents in Sydney and Melbourne, with a view to ascertain what may be the feeling upon the question, and will subsequently do themselves the honor of again addressing you on the subject. I am to add that although the detour to Kangaroo Island or Victor Harbour would involve the performance of a shorter additional mileage than the deviation to Holdfast Bay, and consequently retard the delivery of the mails in Melbourne and Sydney to a less extent, yet as the disadvantage would still be considerable, the Directors could not adopt either plan without ascertaining beforehand the opinion of the public of the Colonies. I have, &c, C. W. Howell, The Secretary, General Post Office. Secretary.

Sub-Enclosure 2 to Enclosure in No. 1. Mr. Howell to the Secretary, General Post Office. Peninsular and Oriental Steam Navigation Company, S IBj 122, Leadenhall Street, London, E.C., 22nd September, 1871. I have the honor to acknowledge the receipt of your letter of 12th instant, enclosing one dated 4th idem, addressed by the Agent-General for South Australia to the Colonial Office, in which Mr. Dutton states that the Colony of Victoria has expressed its acquiescence in the proposal of South Australia, that this Company's mail packets should call at Glenelg to land and receive the South Australian mails ; that New South "Wales will not object, provided the periods of arrival and departure from Sydney are not interfered with, and the Colony is not made liable for additional expenditure; and that South Australia is prepared to incur the necessary expense for increased mileage caused by the deviation from the existing contract. In reply, I am desired most respectfully to submit that the condition above set forth, viz., that the packets should deviate from their present voyage to an extent which, in the opinion of the Directors, would cause a delay of twenty-four hours, and yet be bound to the present dates of arrival at the terminal ports, involves an obligation of an unreasonable character. More particularly would this be the case upon the Australian line, where the weather is frequently too boisterous to admit of any packet, however powerful, making up for lost time. Nevertheless, the Directors, feeling anxious to meet, as far as possible, the interests of all the Colonies with regard to the Mail Service, and having recently placed larger vessels on the Australian line, are prepared to undertake the desired service as an experimental one, on the following conditions :— 1. That the service may be terminated at six months' notice by either side, if found to interfere with the general working of the line, or the postal interests of the more eastern Colonies. 2. That for the purpose of adjusting premiums and penalties, the contract time for the performance of the voyage in each direction shall be increased by twenty-four hours. 3. That the steamers shall not be bound to remain longer at Glenelg or King George's Sound than six hours. 4. That the payment for the proposed service shall be at the same mileage rate as under the present contract. The additional distance to be performed is 190 miles on each trip, or 4,940 miles per annum, which, at 19s. 1-^d. per mile, will amount to £4,724. With reference to the last-named, condition, the Directors feel bound to state that, in their opinion, the extra consumption of coals in driving and deviating the steamers, and other expenses, will certainly not be covered by the proposed contribution. Should the Postmaster-General see fit, in the general interests concerned, to enter into an arrangement based on these conditions, the Directors will do their utmost to maintain the interval between the arrivals at and departures from Sydney, prescribed in the Contract, and they have reason to hope their efforts will, as a rule, be successful. I have, &c, * C. W. Howell, The Secretary, General Post Office, London. Secretary.

Not published.

No. 2. Memorandum for His Excellency the Goveenoe. "With reference to the Despatch from the Eight Hon.'the Secretary of State for the Colonies, of the 20th October last, in which it is requested that the Government of South Australia may be informed whether this Government has any objection to offer to certain proposals of the Peninsular and Oriental Steam Navigation Company for their mail packets to call and deliver mails at Glenelg, the Postmaster-General has the honor to inform His Excellency that, as the proposed deviation of the

No. 1 of this series.

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E.—No. S

route of the mail packets would much more affect the interests of the Australian Colonies than those of New Zealand, the Government of New Zealand prefer that the question should be left to the Governments of those Colonies to decide. Julius Vogel, General Post Office, "Wellington, 23rd May, 1872. Postmaster-General.

No. 3. The Eight Hon. the Earl of Kimbeeiey to Governor Sir G. F. Bowen, G.C.M.G. Sib, — Downing Street, 30th November, 1871. I have the honor to transmit to you a copy of a letter, from which you will learn that the Lords Commissioners of the Treasury have considered it necessary to authorize the Postmaster-General to give the requisite notice to the Peninsular and Oriental Steam Navigation Company to terminate their contract for the Australian Mail Service. This contract will, therefore, cease to have effect on the 31st December, 1873, and the existing postal agreement will continue in force until that period, but no longer. I have, &c, Governor Sir G. I\ Bowen, G.C.M.G. Kimbeelet.

Enclosure in No. 3. Mr. Tillet to Mr. Hekbekt. Sik, — General Post Office, London, November 22nd, 1871. I duly laid before the Postmaster-General your letter of the 31st ultimo, in which, by direction of the Earl of Kimberley, you transmitted a copy of a Despatch from the Governor of Victoria, giving notice of the intention of the Government of that Colony to cease to contribute towards the payment of the cost of the Mail Packet Service maintained between the United Kingdom and Australia on the expiration of two years and three months' notice from the date of the arrival in London of that notice. As the correspondence of Victoria amounts to nearly one-half of all that is carried by the mail packets between Point de Galle and Sydney, and as the Governments of South Australia and New South Wales had previously announced their intention of withdrawing from the postal agreement entered into in ISG4, the Postmaster-General, on receipt of your letter, came to the conclusion that he had no other course to pursue than to terminate the contract for the Australian Mail Packet Service made with the Peninsular and Oriental Steam Navigation Company of the 17th November, 1865, and he accordingly requested the permission of the Lords Commissioners of the Treasury to give the necessary twenty-four months' notice of termination. Their Lordships have been pleased to approve of this being done, and the contract will cease to have effect on the 31st December, 1873. In acquainting you with this decision, Mr. Monsell directs me to request that Lord Kimberley will be good enough to inform the officers administering the Governments of all the Australian Colonies and of New Zealand that the existing postal agreement will continue in force until the termination of the contract, but no longer. I have, &c, E. G. "W. Herbert, Esq., &c, &c, Colonial Office. John Tilley.

No. 4. The Agent-General to the Hon. the Colonial Seceetaet. 7, Westminster Chambers, Victoria Street, "Westminster, S.W., Sib,— 14th December, 1871. I have the honor to transmit herewith copy of a letter, with its enclosures, which has been addressed to me by the Colonial Office, relating to the termination of the Peninsular and Oriental Company's contract for the Australian Mail Service. I have, &c, I. E. Featheeston, The Hon. the Colonial Secretary, Agent-General. Wellington, New Zealand.

Enclosure 1 in No. 4. Mb. Holland to Me. Moeison. Sib, — Downing Street, 23rd November, 1871. I am directed by the Earl of Kimberley to transmit to you a copy of a letter from the Department of the Lords Commissioners of the Treasury, with an enclosure from the General Post Office, from which you will learn that their Lordships have considered it necessary to authorize the Post-master-General to give the requisite notice of twenty-four months to the Peninsular and Oriental Company to terminate their contract for the Australian Mail Service. In addition to the intended withdrawal from the contract of the Colony of Victoria, a similar intention has recently been expressed on the part of the Government of New South "Wales. I am, &c, John Morison, Esq. __ _____ H. T. Hollattd.

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EURTHER PAPERS RELATIVE TO

Enclosure 2 in No. 4. Mr. Lingen to the Untiek Secbetaey of State. Sic, — Treasury Chambers, 14th November, 1871. I am directed by the Lords Commissioners of Her Majesty's Treasury to transmit to^you herewith, for the information of the Earl of Kimberley, copy of a report from the Postmaster-General, and of its enclosures, and I am to state that, under the circumstances therein represented, my Lords have authorized the Postmaster-General to give the requisite notice of twenty-four months to the Peninsular and Oriental Company to. terminate their contract for the Australian Mail Service. I am, &c, The Under Secretary of State, Colonial Office. E. R. W. Lingen".

Enclosure 3 in jSTo. 4. The Postmastee-Geneeal to the Loeds Commissiosvees of the Treasury. Mt Lords, —■ General Post Office, 9th November, 1871. I have the honor to transmit to your Lordships the copy of a letter which I have received from the Colonial Office, dated the 31st ultimo, covering copy of a Despatch from the Governor of Victoria, giving notice of the intention of that Colony to withdraw, in two years and a quarter, from the arrangement under which the Australian Mail Packet Service is now performed. The correspondence of Victoria is very nearly one-half of the whole amount carried by the packet between Point de G-alle and Sydney, the total number of letters inwards and outwards, in 1870, having amounted to 2,090,446, of which 1,012,860 were to or from Victoria. Under these circumstances, the withdrawal of Victoria from the existing arrangement seems to render it necessary to give notice to the Peninsular and Oriental Steam Navigation Company to terminate their contract of the 17th November, 1865, for the Australian Service, particularly as the Government of South Australia gave notice, on the 13th of May last, of its intention also to withdraw, and a similar notice given by the Government of New South Wales, on the 23rd May, 1866, has never been cancelled. By a Despatch from the Governor, dated the 27th of January, 1869, it was simply agreed to be held in abeyance. I have, therefore, to request the authority of your Lordships for giving the requisite notice of twenty-four months to the Peninsular and Oriental Company to terminate their contract for the Australian Mail Service. I have, &c., The Lords Commissioners of the Treasury. W. Mojstsell.

No. 5. Memorandum for His Excellency the Goyernor. Ministers respectfully request His Excellency to represent to Her Majesty's Secretary of State for the Colonies that, if the Home Government should have ■ received an intimation of the desire of the Government of Victoria to have the required notice given on behalf of that Colony to terminate the contract with the Peninsular and Oriental Steam Navigation Company for the Mail Service between Point de Galle and Sydney, this Government desires that notice be given for terminating the contract on behalf of New Zealand. Julius Vogel, General Post Office, "Wellington, 16th October, 1871. Postmaster-General.

No. 6. Memorandum for His Excellency the G-oteenoe. His Excellency the Governor is respectfully requested to forward the accompanying draft for £4,000 to Her Majesty's Principal Secretary of State for the Colonies, being a further payment on account of the contribution due from New Zealand for the Main Line of Packet Service between Great Britain and Australia via Suez. Juxius Vogel, General Post Office, Wellington, 9th December, 1871. Postmaster-General.

No. 7. Mr. Eliott to the Sechetaet, General Post Office, London. Sib, — General Post Office, Wellington, 15th December, 1871. Referring to former correspondence on the subject of the moiety of the cost of a Steam Mail Service between Australia and New Zealand, contributed by the Imperial Post Office, in order to complete the connection of this Colony with the service via Suez, I have the honor to inform you that, during the year ended 30th June last, a sum of £2,757 16s. 2d. has been paid by this Department by way of bonus and gratuity for this service. I have to request, therefore, that you will be good enough

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E.—No. .3,

to move Her Majesty's Postmaster-Greneral (in accordance with your letter of the 10th November, 1870), to credit this Colony with half of that sum, viz., £1,378 18s. Id. I have, &c, Eliott Eliott, The Secretary, General Post Office, London. Secretary.

No. 8. Mr. Page to the Hon. the Postmastee-Genebal. Sib,— General Post Office, London, 19th March, 1872. With reference to your letter of the 15th December last, I am directed by the PostmasterGeneral to acquaint you that, following the course adopted in 1870, he has given orders, in compliance with your request, for placing to the credit of the New Zealand Post Office the sum of £1,378 18s. Id., that being one-half of the expense incurred for the year ended 30th June, 1871, in maintaining the Branch Packet Service between New Zealand and Australia to connect with the Mail Service via Suez. I am, &c, The Postmaster-General, Wellington. Wm. Jas. Page.

No. 9. Mr. W. Gbay to the Secretary, General Post Office, London. Sib,— General Post Office, Wellington, 23rd May, 1872. I beg to acknowledge the receipt of your letter of the 19th of March last, and to thank you for having taken the necessary steps for placing to the credit of this Department the sum of £1,378 18s. Id., that being one-half of the expense incurred for the year ended 30th June, 1871, in maintaining the Branch Packet Service between New Zealand and Australia, to connect with the Mail Service via Suez. I have, &c. W. Geay, The Secretary, General Post Office, London. (for Postmaster-General).

No. 10. The Eight Hon. the Earl of Kimbebley to Governor Sir G-. P. Bowen, G.C.M.G. Sic, — Downing Street, 18th April, 1872. I transmit to you copies of a report received through the Board of Treasury from the Beceiver and Accountant-General of the Post Office, with copies of a statement of the amounts chargeable to the several Australian Colonies and New Zealand on account of the Mail Packet Service for the year ending 31st December, 1872, together with an account current showing the whole balance which will be due from each Colony on the 31st December next. I request that you will give instructions for a remittance to be made of one-half of the amount due, up to the 31stDecember next, from the Colony under your Government, as soon after the 30th June as possible, and that the balance then remaining due may be remitted after the expiration of each subsequent quarter. I have, &c, Governor Sir G. E Bowen, G.C.M.G, &c, &c, &c. Kimberley.

Enclosure in No. 10. Bepoet from the Eeceitee And Accountant-Genekal of the Post Office, explanatory of the Account against the Australian Colonies and New Zealand for Post Office Packet Service during the Tear ending 31st December, 1872. The account of the amount chargeable on the Australian Colonies and New Zealand for Mail Packet Service during the year 1872 is annexed. The amount of subsidy payable to the Peninsular and Oriental Steam Navigation Company for the service between Point-de-Galle and Sydney having been reduced by £500 from Ist August, 1871, in consideration of the withdrawal of Naval Agents from that line, the Colonial moiety of the cost of the service for the current year has been reduced from £64,750 to £64,500; and an allowance has been made to the Colonies on account of the sum deducted from the subsidy for the period from Ist August to 31st December, 1871. Three of the Colonies—namely, South Australia, Tasmania, and Western Australia—have remitted in full the amount of the balances due upon the previous account. The arrears due from the other Colonies have been carried to their debit in the present account. In the case of Victoria, the arrears amount to £26,117 10s. Id., being one-half of the balance due to 31st December, 1871. The attention of the Government of the Colony should, I submit, be called to this arrear. Geo. Chetwtnd, General Post Office, London, 12th April, 1872. Eeceiver and Accountant-General.

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ACCOUNT CURRENT for the Year 1872, in continuation of that rendered for the Year 1871. Or.

An ACCOUNT showing the Amounts chargeable on the AUSTRALIAN COLONIES and NEW ZEALAND, on Account of the Mail Packet Service for the Tear ending 31st December, 1872.

COLONIES. Number of Letters Inwards and Outwards in 1871. Service to Point-de-Galle. Service between Point-de-G-alle and King George's Sound. Service between King George's Sound and Melbourne. Service between Melbourne and Sydney. Moiety of Cost of Mail Boxes and Mail Bags. Proportion of Cost of Special Packets between Dover and Calais. Estimated Number of Newspapers Inwards and Outwards via Suez. Egyptian Transit Kate on Newspapers, &c, via Suez. Totals. Victoria New South Wales ... South Australia New Zealand Tasmania Queensland Western Australia ... 982,600 394,830 197, 880 45,160 70,340 179, 445 33,375 £ s. d. 14,700 10 5 5,907 0 9 2,960 9 11 675 10 11 1,052 6 9 2,684 16 2 499 5 1 £ s. d. 20,829 0 2 8,369 12 4 4,194 13 11 957 3 5 1,491 0 10 3,804 1 7 707 7 9 £ s. d. 9,866 9 6 3,965 1 3 £ s. a, 4,686 16 1 £ s. d. 77 8 6 31 2 3 15 11 10 3 11 2 5 10 10 14 2 10 2 12 7 £ s. d. 36 2 8 14 10 4 7 5 6 1 13 2 2 11 9 6 12 0 14 7 1,519,222 618,054 321,488 90,139 188,216 260,883 57,298 3,055,300 £ b. d. 1,616 4 6 657 9 6 341 18 0 95 17 6 200 4 0 277 11 0 60 15 6 £ b. d. 47,125 15 9 23,631 12 6 7,519 19 2 2,723 5 7 3,458 14 9 10,719 6 9 1,271 5 6 453 8 9 707 0 7 1,801 19 11 536 0 8 2,130 3 3 ... 1,903,630 28,480 0 0 40,353 0 0 16,794 0 0 7,353 0 0 150 0 0 70 0 0 3,250 0 0 . 96,450 0 0

COLONIES. Balance of Account to 31st December, 1871. Amount chargeable for 1872 (as per above Statement.) Totals. COLONIES. Remittances. Branch Packet Service. Sums allowed to the Colonies, on Account of the Year 1871. Balance due 31st December, 1872. Totals. £ s. d. Victoria ... New South Wales ... Soutli Australia New Zealand Tasmania Queensland Western Australia... £ s. d. 52,233 10 1 25,4,59 2 4 12,597 16 1 13,230 6 4 3,69S 15 9 16,490 1 5 1,641 12 4 £ a. d. 47,125 15 9 23,631 12 6 7,519 19 2 2,723 5 7 3,458 14 9 10,719 6 9 1,271 5 6 £ s. d. 99,359 5 10 49,090 14 10 20,117 15 3 15,953 11 11 7,154 10 6 27,209 8 2 2,912 17 10 Victoria ... New South Wales ... South Australia New Zealand Tasmania... Queensland Western Australia ... £ s. d. 26,116 0 0 22,996 8 1 8,472 16 1 9,000 0 0 2,489 5 8 11,249 14 5 1,641 12 4 4,125 0 0 1,378 18 1 1,206 10 0 1,225 0 0 £ s. d. Ill 0 7 44 6 5 22 17 5 20 2 5 7 14 11 19 6 5 3 15 2 £ B. d. 73,132 5 3 26,050 0 4 7,497 1 9 5,554 11 5 3,450 19 11 14,715 7 4 1,267 10 4 £ s. d. 99,359 5 10 49,090 14 10 20,117 15 3 15,953 11 11 7,154, 10 6 27,209 8 2 2,912 17 10 ... 125,348 4 4 96,450 0 0 221,798 4 4 81,965 16 7 7,935 8 1 131,667 16 4 221,798 4 4 229 3 4 General Post Office, London, 12th April. 1872. GrEO. ChEXWTND, Receiver and Accountant-General.

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A STATEMENT showing the Amounts Credited to the AUSTRALIAN COLONIES in 1872, on Account of the Year 1871.

No. 11. Mr. W. Gkay to the Seceetaey, General Post Office, London. Sir,— General Post Office, Wellington, 4th July, 1872. I have the honor to acknowledge the receipt of " An account showing the amounts chargeable on the Australian Colonies and New Zealand, on account of the Mail Packet Service, for the year ending 31st December, 1872," as prepared by the Receiver and Accountant-General, and forwarded to His Excellency the Governor of this Colony in a Despatch from the Secretary of State for the Colonies of the 18th of April last. With reference to this account, I beg to direct your attention to the fact that it contains no allowance to New Zealand for overcharge in 1871. In the account for 1871, it was estimated that there would be transmitted between New Zealand and the United Kingdom, during that year, 183,585 letters and 432,950 newspapers, the charge on which was £9,904 18s. 9d.; instead of which, however, only 45,160 letters and 90,139 newspapers were actually transmitted, the proportionate charge being about £2,738 ss. Id. From this it will be observed that New Zealand has been overcharged, for the year 1871, the sum of £7,166 13s. Bd. I have, therefore, to request that you will be good enough to cause credit to be given this Colony for this amount, which, on examination of the account, may be proved to have been overcharged as stated. I have, &c, W. Gbax, The Secretary, General Post Office, London. (for the Secretary).

No. 10 of this series.

Enclosure in No. 7 of Suez Papers, 1871, E. No. 3.

COLONIES. Amount Overcharged in 1871* Sums allowed to the Colonies on Account of Penalties on the MailPaclset Service between Point-de-Galle and Sydney, Year 1871.+ Total Sums Credited to the Colonies. Victoria New South Wales South Australia... New Zealand Tasmania Queensland Western Australia ... £ s. d. 50 9 4 20 2 11 10 7 11 9 2 11 3 10 5 8 15 8 1 14 2 £ s. d. 60 11 3 24 3 6 12 9 6 10 19 6 4 4 6 10 10 9 2 10 £ s. d. Ill 0 7 44 6 5 22 17 5 20 2 5 7 14 11 19 6 5 3 15 2 104 3 4 125 0 0 229 3 4 * The amount of Subsidy payable for the service between Poi: from 1st August, 1871, in consideration of the "withdrawal of the deducted for the five months to 31st December, 1871; one-half of int-de-Cralle and Syd naval agents. The ? this sum is credited dney was reduced I 3 sum of £208 6s. f 1 to the Colonies. by £500 per annun 8d. was accordingl; t Amount of Penalties inflicted „ Premiums earned £600 350 Excess of Penalties over Premiums £250, One-half to be credited to the Colonies i £125