THE SUEZ MAIL SERVICE.

5

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.