21

E.—3

Government, and therefore, that it will be placed on a basis which will defy opposition, unless at a most extravagant cost. 9. To show the good faith in which we have dealt with you, we may state that on the arrival of Mr Webb's representative in Sydney, two days ago, we found that that gentleman was not at all pleased with the offer we had made to New South Wales. He thought at first of declining altogether to entertain it. Subsequently, under the great pressure we put upon him, he consented to do so, but only on the condition that one-half of the total postages received by New Zealand from the Colonies, for mail matter carried by the line, should revert to Mr Webb, in addition to the £50,000 we proposed. We assented to that condition, without even informing you that it had been demanded, so desirous were we not to interpose any obstacle to the prospect of an arrangement. 10. We ask you to consider these facts. We desire to act with New South Wales ; both Colonies urgently waut a Califorian service ; New Zealand is inclined to make a considerable payment for it; though wo should gladly accept, in lieu of the arrangement we have proposed, a more direct responsibility on the part of New South Wales. We invite you then to reconsider the question, with the view of at once entering into negotiations upon the matter, as we understood you to propose to do at the interview we had with you on the day before the date of your letter. We are very much pressed for time ; and we hope you will not consider that there is anything of a disrespectful disregard of your convenience involved in our asking you for a speedy decision. 11. In conclusion, we beg to assure you that our action throughout this matter has been that which we believe the position and the interests of New Zealand imposed upon us as a duty. We have, &c, Julius Vogel. The Hon. the Colonial Secretary, New South Wales. William H. Reynolds.

No. 29. The Hon. the Colonial Seceetaey, New South Wales, to the Hon. J. Vogel and the Hon. W. H. Reynolds. Gentlemen} — Colonial Secretary's Office, Sydney, 25th February, 1873. Tour letter of the 22nd, received yesterday, has been considered by this Government. Those portions of it which are devoted to an elucidation of the meaning of your previous communication, or which refer more expressly to the terms of your proposals to New South Wales, do not call for any present notice at my hands ; nor do I see that any useful object would be gained by entering further upon the grounds of the objections of the Government to your proposal, or by any examination of your views on the points of difference which have been raised. As you appear to have put too wide an interpretation on the remarks made by me in your last interview with Ministers at this office, I desire to explain (what indeed is sufficiently clear in my letter of the 22nd) that the Government of New South Wales would have been glad to co-operate with Hew Zealand in organizing a thoroughly efficient mail service between Australia, New Zealand, and Great Britain, by way of America, if New Zealand herself had been in a position to entertain any such proposal, and if special obstacles to co-operation had not unfortunately been raised by the representatives of New Zealand now in this Colony. This Government is desirous of assisting in the establishment of a Trans-Pacific Mail Service, of the character I have described, but it cannot commit itself to the existing Webb contract, which is regarded as costly and disadvantageous to New Zealand, and presenting no prospect of meeting the postal wants of this Colony. I have, &c, The Hon. J. Vogel, C,M.G. Henby Pabkes. The Hon. W. H. Reynolds.

No. 30. The Hon. J. Vogel and the Hon. W. H. Reynolds to the Hon. the Colonial Seceetaet, New South Wales. Sic — Sydney, 26th February, 1873. We have the honor to acknowledge the receipt of your letter of yesterday's date on the subject of the Californian Service. We agree with you that, in the present circumstances, no useful object can be gained by entering further upon the grounds of your objections to the offer we have made to your Government. We hope that you will we able to recognize that, throughout this correspondence, our course has been most conciliatory ; and that we have avoided references to passages in your letters which might have caused irritation. We have, &c, Julius Vogel. The Hon. the Colonial Secretary, New South Wales. William H. Reynolds.

No. 31. Feathebston, London, to Colonial Seceetaex, Wellington. (Telegram.) London, 28th February, 1873. Details Conference postal arrangements wanted. Sydney protests. Senate rejected Webb's subsidy.