THE PANAMA MAIL SERVICE.

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E.—No. 2,

expressed by Mr. Docker, that it is most desirable this charge should be collected on delivery of this correspondence to the non-contributing Colonies, and I regret to learn that the postal laws of New South Wales do not admit of such an arrangement being carried out by that Colony. Ido not see anything to prevent its being done by New Zealand, if the correspondence were sent in mails made up by New Zealand for the Colonies in question. These mails could still be sent through Sydney, and could be delivered unsealed to the New South Wales Post Office if desired. The alternative suggested by Mr. Docker, viz., that this extra postage should be collected for account of New South Wales and New Zealand at the time the correspondence is originally posted, appears to me to present very serious difficulties. The collection, not only in the United Kingdom, but in all countries the correspondence of which is sent through the United Kingdom, of an unusual rate of postage on correspondence for a portion of the Australian Colonies would create so much trouble and complication both to the British and Foreign Post Offices, that I fear any such proposal would be seriously objected to, especially if it is borne in mind that a change may again be asked for, when Victoria or any other of the noncontributing Colonies shall agree to pay a portion of the subsidy to the Panama steamers. With regard to correspondence originating in countries between the United Kingdom and New Zealand, I beg to point out, that as most of those countries collect only their own postage, and as no accounts are kept between their Post Offices and that of New Zealand, it is in these cases indispensable that the sea postage accruing to New South Wales and New Zealand should be collected on delivery. Looking to the probability of an arrangement being arrived at during the approaching Postal Conference in. Melbourne, by which the necessity for the continued imposition of additional postage on the correspondence above referred to may be obviated, and to the difficulties which surround the adoption of the plan now under discussion, I recommend that it be suggested that to the New South Wales Government whether it will not be desirable to postpone further action in the direction indicated by Mr. Docker until the result of that Conference shall be ascertained. 3. There is, however, one subject referred to in Mr. Docker's letter which appears to require immediate attention. I was not informed, tmtil the receipt of that letter, of the actual amount of the additional postage which is being charged by New South Wales on the correspondence from noncontributing Colonies, and I learn from it that, upon newspapers from those countries, when sent via Panama, a charge of one penny only is collected. It has probably escaped the attention of the New South Wales Post Office, that the actual cost of the conveyance of these newspapers across the Isthmus of Panama is elevenpence per pound, equal to an average charge of nearly threepence per newspaper, and that consequently under existing circumstances, New South Wales and New Zealand are serious losers on all newspapers carried for the non-contributing Colonies. I have already initiated a correspondence with the Panama Eailroad Company, in the hope of obtaining a reduction upon the excessive charge above mentioned; but, in the meantime, I do not doubt the Postmaster-General of New South Wales will think it right to take such steps as may be necessary for securing to that Colony and New Zealand at least the repayment of the sum actually disbursed by them for conveying newspapers across the Isthmus. Johk Hall.

No. 47. Copy of a Letter from Mr. S. H. Lambtoh to Mr. Gr. Eliott Eliott. Sic,— General Post Office, Sydney, 30th January, 1867. I have the honor to transmit a specimen of the Time Bill for the conveyance of mails between Sydney and Panama, for your information, and beg to state that a copy thereof, with the necessary particulars filled in, accompanies the mail which leaves to-day for Panama. I also enclose a supply of forms of Time Bill for the conveyance of mails from Panama to Sydney which you will be so good as to forward to the British agent at Panama, with instructions for immediate use. If any improvements in either of the forms in question can be suggested by you, steps will at once be taken to give effect thereto. I have, &c, S. H. Lambton, The Secretary, General Post Office, "Wellington, New Zealand. Secretary.

No. 48. Copy of a Letter from Mr. Gr. Eliott Eliott to British Packet Agest, Panama. Sic, — General Post Office, Wellington, sth February, 18G7. I am directed to forward to you the enclosed six copies of a Time Table in connection with the inward Panama Mail Service, and to request you to cause the mails from London and your office to be entered thereon, and to be given to the Mail Agents when they receive delivery of the mails. A larger supply will be furnished to you when one or two corrections are made in the form now sent. I have, &c, The British Packet Agent, Panama. G. Eliott Eliott, Secretary.

No. 49. Copy of a Letter from the Hon. H. Paekes to the Hon. E. W. Staffoed. Sib, — Colonial Secretary's Office, Sydney, New South "Wales, Ist April, 1867. I have the honor to transmit for your information the enclosed copy of the Minute of the Executive Council, defining the rules under which the mails of Colonies not contributing to the Panama Mail Service, will be charged in future for transmission by the steamers of that service. I have, &c, The Hon. the Colonial Secretary, "Wellington, New Zealand. Henbt Paekes. 6