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F.—3

I have the honor to submit, for the Earl of Carnarvon's consideration, that the colony is entitled to a similar credit for the subsequent period up to the termination of the service—that is to say, from the Ist July, 1872, to the 26th February, 1873. I should feel much obliged if you would cause to be furnished by the General Post Office a statement of the receipts and expenditure of the service during that period. I have, &c, I. E. Featheeston, Sir H. T. Holland, Bart., Colonial Oflice. Agent-General for New Zealand.

No. 9. The Aoent-Geneeal to the Hon. the Colonial Secbetaby. 7, Westminster Chambers, Victoria Street, "Westminster, S.W., Sic,— 24th August, 1874. Referring to my letter of the 11th June, on the subject of the claim preferred by the colony to more liberal terms in respect of the former San Francisco Mail Service, I have the honor to transmit herewith copies of two letters addressed to me by the Colonial Office (with enclosures), dated 6th and 21st August, relative to the receipts and expenditure of that service from Ist July, 1872, to the date of the termination of the service in 1873, from which you will perceive that the gain to the Imperial Government amounts to £27 only, which sum the Postmaster-General will be authorized to give up to the New Zealand Government. I have, &c, I. E. Featheeston, The Hon. the Colonial Secretary, "Wellington. Agent-General.

Enclosure 1 in No. 9. Mr. Hebbebt to the Agent-Geneeal. Sib, — Downing Street, 6th August, 1874. "With reference to the request made in the last paragraph of your letter of the Ist ultimo, I am directed by the Earl of Carnarvon to transmit to you a copy of a letter from the General Post Office, enclosing a statement of the receipts and expenditure of the mail packet service between this country and New Zealand via San Francisco, from the Ist July, 1872, to the date of the termination of the service in 1873. I have, &c, The Agent-General for New Zealand. Eobeet G-. W. Heebeet. Sub-Enclosure 1 to Enclosure 1 in No. 9. Mr. Tilley to Mr. Heebeet. Sic, — General Post Office, London, 3rd August, 1874. I am directed by the Postmaster-General to transmit to you, in compliance with the request conveyed in your letter of the Bth ultimo, a statement of the receipts and expenditure of the mail packet service between this country and New Zealand via San Francisco, from the Ist July, 1872, to the date of the termination of the service—-viz. April, 1873. It will be observed that the net Imperial gain amounts to £27 only. The smallness of this amount is due to the fact that, during the period to which the statement refers, the homeward mails exceeded the outward mails in weight, and also in number, the homeward service having been continued for two or three months after the last outward mail had been despatched from this country. As the letters, &c, received from New Zealand figure in the statement as items of expense only, no Imperial postage being collected on such correspondence, it will be evident that a preponderance of mails received over mails despatched must cause a diminution of the Imperial gain. I have, &c, K. G. "W. Herbert, Esq., Colonial Office. John Tilley. Sub-Enclosure 2 to Enclosure 1 in No. 9. A Statement showing the estimated amount of Sea Postage collected by the United Kingdom on Correspondence addressed to New Zealand, and the estimated Cost of conveying the New Zealand Mails across the Atlantic, and through the United States, during the period from Ist July, 1872, to the termination of the service in 1873. Estimated amount of sea postage collected by the United Kingdom on the correspondence despatched to New Zealand—viz., on letters ... ... ... ... ... £3,827 On newspapers ... ... ... ... ... ... ... ... ... 721 On books, &c. ... ... ... ... ... ... ... ... ... 816 £5,364 Estimated cost of conveyance of New Zealand mails from England to New Tork—viz., for letters ... ... ... ... ... ... ... ... ... £765 For newspapers ... ... ... ... ... ... ... ... ... 1,047 £1,812 %