E.—No. 4,

18

FURTHER PAPERS RELATIVE TO THE

No. 15. Mr. H. H. Hall to the Hon. J. Vooel. Sic,— Auckland, 11th June, 1870, " Noon." Since I had the pleasure of addressing you on 21st April, I have made the voyage to San Francisco and back to this port. lam happy to inform you that I have succeeded beyond my most sanguine expectations in making arrangements for the future conveyance of passengers and" mails between Honolulu and San Francisco with the North Pacific Transportation Company, which Company, after my explaining the nature of my contract with the New Zealand Government, fully approved of my proceedings, and are prepared to carry out my engagements to the fullest extent. The "Idaho " was taken off and the " Ajax" substituted, which vessel made the voyage in nine and a half days, and her return trip, it is expected, will occupy ten days. In July, the " John L. Stevens " will take the place of the " Ajax." She is expected to do her voyage in eight days from San Francisco to Honolulu, and the return in nine days. I had two large steamers offered me to take the place of the " Wonga Wonga " and the " City of Melbourne," at a far less rate of charter than I am now paying the A.S.N. Co.; but after thoroughly investigating them, I found that they would not accomplish my portion of the voyage in less time than the present steamers do. The steamers I allude to belong to Mr. Webb, of New York. They are side-wheel boats of over 2,000 tons burthen, and said to be very fast; but on ascertaining the rate of speed they accomplished on their former voyages the average only showed about nine and a half knots, and that rate would be diminished wheu loaded for a long voyage. The Manager of the Pacific Mail Company advised me not to make the same mistake that they are now labouring under, but to have by all means screw steamers properly rigged for sailing. They have three side-wheel steamers of between 3,000 and 4,000 tons burthen plying between San Francisco and China, running 6,400 miles, which distance occupies thirty-six days. The distance between Sydney, Auckland, Honolulu, and San Francisco, that we are now performing, is 7,400 miles, my portion being 5,300 miles. This distance, at ten knots per hour, will require twenty-two days actual running time. I find that this will be the highest rate of speed the " Wonga Wonga" and " City of Melbourne " can attain to, and require great pushing to keep that average. You are aware that those boats were represented to consxime twenty-two tons of coals per day on ten-knot speed, whereas the consumption is nearer thirty-five tons to get that speed. My present detention on each vessel has been three days in Honolulu; in future, twenty-four hours will cover all. The Hawaiian Government are now building a wharf expressly for the accommodation of my vessels. On my arrival in Sydney, fuller details will be forwarded to you. I have, &c, The Hon. J. Vogel, Postmaster-General. H. H. Hall.

No. 16. The Hon. Chaeles Cowpee to the Hon. J. Vogel. Sib,— Sydney, sth May, 1870. In your letter of the sth ultimo —the receipt of which I was able, for the reasons stated, only hastily to acknowledge in my letter of the 27th of the same month, by the then outgoing mail —you remind me that I have not yet informed you whether I have made provision for contributing month by month, pending other arrangements, as suggested in your letter of the 10th of January last, for the carriage of New South "Wales mails to California at the rate of £10,000 a year, being the sum agreed on as that which should be asked from New South Wales, that Colony making with Queensland such, arrangement as the two Colonies might mutually agree upon; and you add that it was understood that the Postmaster-General would arrange to make the payments out of ordinary services, or that, on Parliament meeting, special provision would be sought for the purpose. 2. If I refer to the terms of the Memorandum of Agreement relating to the Californian Postal Service, it is to provide that no misapprehension shall arise from the expressions which I have quoted in the first paragraph of this letter from yours of the sth ultimo. 3. It is stated in the Memorandum of Agreement, that in the event of New Zealand being able to contract for a service between San Francisco, Auckland, and Sydney, Now South Wales and Queensland shall contribute to the cost in the proportion of three-fifths by New Zealand, and two-fifths by New South Wales and Queensland, provided that the cost to New South Wales and Queensland shall not exceed £10,000 per annum. 4. From this it will be seen that the liability in these proposed arrangements was the liability of New South Wales and Queensland equally, and not of New South Wales on behalf of Queensland, to whose Government she should be supposed to look for her share of the expenditure. 5. With this brief preliminary explanation, I have now the honor to say, in reference to my letter intimating to you the course taken by the Queensland Government in their withdrawal from the arrangements provisionally concurred in by them, that I have, notwithstanding such expressed determination on their part, reopened correspondence, in the hope of inducing them to abide by arrangements provisionally entered into by them, approved of in the main by the Cabinet, and to be left to the approval or disapproval of their Legislature ; and it is not without a hope that such communications may lead to a favourable issue. 6. The Government of Mr. Lilley has, as you are doubtless aware, after being in considerable difficulty for a length of time, succumbed; but I will take an early opportunity of renewing negotiations with the present Ministry, and I trust that the expressed determination of withdrawal may not be ultimately persevered in. 7. In the meantime the papers will be laid before our Parliament; but as it is about proroguing, nothing further is likely to take place in the matter, until after its reassembling early in August next. I have, &c, The Hon. the Colonial Secretary of New Zealand. Chaeles Cowpee.