FURTHER PAPERS RELATIVE TO THE

E.—No. 4

18

proposal of this Government for the payment, as in the case of the Panama Service, of 20s. per pound on the weight of the mails carried by the steamers engaged in the service newly established between Sydney and San Francisco cannot be entertained, and in which Mr. Vogel expresses the opinion that until this Government is sufficiently impressed with the value of the service via San Francisco to be willing to make the contribution of £6,000 per annum asked for, the Post Office Department of this Colony should abstain from making use of it. In reply I have the honor to state that the Government of Victoria is glad to recognize that it is in no unfriendly spirit that the Government of New Zealand has come to the conclusion not to accept the proposition of this Colony in connection with the Californian Mail Service. The Government of New Zealand is aware that A rictoria is under large annual obligations for the Mail Service via Suez and Galle, which has recently been a model of regularity and of essential service to all of the Australian Colonies and New Zealand, by the punctuality of its deliveries and the lateness of its telegraphic news, and for this reason the route via Sydney, San Francisco, and Honolulu became only of secondary importance to Victoria, excepting so far as regarded communication with the United States of America after tho stoppage of the line via Panama. The Colony of A 7iotoria had not therefore the same active interest in the new line as New Zealand, and consequently this Government felt constrained to measure the extent of its contribution by the use made of the line for correspondence (excluding newspapers and packets), and can only regret that the shipment of the mails, with the concurrence of the Agents of the Contractors in Sydney, on the supposition that the privilege would be accorded on the same terms as the mails were carried by the Panama Steamers, has not met with the approval of your Government. Under the circumstances, there appears to be no alternative but for the Postmaster-General of this Colony to discontinue making up mails for transmission by the mail steamers leaving Sydney for San Francisco under contract with your Government, and instructions to this effect have accordingly been issued. For the due delivery of mails now in course of transit by the San Francisco route, forwarded for this place beforo the decision on this subject could have become known to the Post Office authorities in London, this Colony must be indebted to the courtesy of your Government, and rely on your causing the said mails to be forwarded. It only now remains for this Government to account to the Government of New Zealand for the postage received in this Colony on correspondence forwarded by the Californian route, and a bank draft for the sum of £85 16s. 6d. is accordingly enclosed, this being the amount collected by the Post Office Department on this account, as shown by the accompanying statement. I take the opportunity, before closing this letter, to request that you will have the goodness to direct that in future all correspondence from your Colony for this Government shall be addressed to the Chief Secretary, Victoria. I have, Ac, The Hon. the Colonial Secretary, Wellington. James McCulloch.

Enclosure in No. 31. STATEMENT showing the Amount due to the Government of New Zealand on account of Postages collected on Correspondence despatched and received by the Mail Contract Steamers running between Sydney and San Francisco, from 19th March to 12th August, 1870. Outwards.

HONOLULU. CALIFOKNIA. United Kingdom. Total Numheb Mails. of Amount. Number of Letters. Number of Letters. Number of Letters. Letters. /larch Lpril r _ 25 7 9 7 JS 214 138 253 238 309 106 5 61 98 102 345 150 323 343 429 £ s. d. 17 5 0 7 10 0 16 3 0 17 3 0 21 9 0 lay une "uly 79 10 0 Inwards. uly 50 373 101 524 26 4 0 26 4 0 Recapitulation. £ s. d. Amount received, Mails Outwards ... ... ... ... ... ... 79 10 0 „ „ Inwards ... ... ... ... ... ... ... 26 4 0 £105 14 0 Deduct threepence per letter on 1,590 letters outwards, being for Victorian inland rate, and gratuity paid to Masters of vessels conveying mails to Sydney ... ... ... 19 17 6 Amount due to New Zealand ... ... ... ... ... ... ... £85 16 6 I certify the above account to be correct,") "W". Tubnek, according to the records of this office, j Deputy Postmaster-General. General Post Office, Melbourne.