E.—No. 2,

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FURTHER PAPERS RELATIVE TO

advice referred to arrived at Sydney. I shall be much obliged if you would cause such information to be sent by the " Rangitoto," leaving 1 p.m. to-morrow, as would enable the Government of New South Wales to pay the subsidies advised by the certificates sent per " Ruahine " and " Rakaia," as the withholding of them has caused us very considerable inconvenience. I have, &c, H. B. Benson, The Hon. the Postmaster-General, Wellington. General Manager.

No. 33. Mr. G. Eliott Eliott to the General Manager, P.N.Z. and A.R.M. Co. Sir— General Post Office, Wellington, 3rd March, 1869. In acknowledging the receipt of your letter of yesterday's date, I am directed to inform you that a communication has been addressed to the Government of New South Wales respecting payment of subsidies to the Panama, New Zealand, and Australian Royal Mail Company. I have, &c, The General Manager, P.N.Z. and A.R.M. Co., G. Eliott Eliott. Wellington.

No. 34. The Hon. J. C. Richmond to the Hon. Postmaster-General, N.S.W., Sir— General Post Office, Wellington, 3rd March, 1869. Referring to Mr. Hall's letter of 29th January last, I have the honor to inform you that, in accordance with the intention therein expressed, this Government paid the last subsidy accruing to the Panama, New Zealand, and Australian Royal Mail Company on the arrival of the " Rakaia," less the penalty of £1.312 10s. for the non-despatch of a steamer to Panama in the month of February; a similar course having been pursued in January, on the payment of subsidy for that month on arrival of the "Ruahine." As no intimation, up to this date, has been received that the formal contract has been executed by the Company, this Government has refrained from enforcing the penalty of £6,000 under the 28th clause, to which the Company would be liable had the contract been duly completed. I have, &c, The Hon. the Postmaster-General, Sydney. J. C. Richmond.

No. 31 of this series.

No. 35. The Hon. Colonial Secretary, New South Wales, to the Hon. E. W. Stafford. (No. 69-810.) Colonial Secretary's Office, Sic, — Sydney, New South Wales, 4th February, 1869. Referring to the agreement entered into between the Governments of New Zealand and of this Colony in relation to the conveyance of Post Office mails by the Panama, New Zealand, and Australian Royal Mail Company, by which this Colony is only liable for her share of the subsidy during the continuance of the service therein provided for, I have the honor to inform you that the question having arisen, whether the partial service that the Company is now performing, and purposes continuing to perform, until the return of the " Rakaia," in March, can be held to be a continuance of the service provided for in the contract, the Government of New South Wales have decided, not to make any further payments on that account without first consulting with that of New Zealand ; and I therefore request that you will be good enough to bring the matter under the consideration of your Government, and favour me with their views on the subject. I have, &c, The Hon. the Colonial Secretary, New Zealand, John Robertson. Wellington.

No. 36. The Hon. Postmaster-General, Sydney, to the Hon. J. Hall. (No. 69-1029.) General Post Office, Sir,— Sydney, 22nd February, 1869. I do myself the honor to acknowledge the receipt of your letter dated the 29th January last (E. 69-11), relative to the enforcement of penalties for breach of contract by the Panama, New Zealand, and Australian Royal Mail Company. With reference to the question of the penalties, and also to the concluding paragraph of your letter intimating that the usual certificates to this Government will be given on the completion of the voyages of the " Ruahine " and " Rakaia," I enclose for your information a copy of the report of the Treasury Accountant of this Colony; and may observe that the question, as regards the penalties, will receive the early attention of this Government. With regard to the subsidy, I beg to state that the sum of £2,291 13s. 4d. has been paid, pending further explanation, and the receipt of the statement of accounts suggested by the Treasury Accountant in his report hereinbefore alluded to; and I shall feel obliged if you will be so good as to cause the required statement to be furnished with as little delay as possible. I have, &c, The Hon. the Postmaster-General, Dan. Egan, Wellington. Postmaster-General.

No. 31 of this aeries.