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I enclose, for your information, a copy of a letter received from the Post Office in reply, from which you will perceive that Lord John Manners has given orders to treat as prepaid all letters bearing Fijian stamps of sufficient value reaching this country in the mails from Fiji. I also enclose a copy of a despatch received from the Governor of New South Wales relating to the postal accounts, together with a copy of correspondence with the Post Office arising thereupon. With reference to the suggestion made by Sir Hercules Robinson, that, upon the recognition in this country of the Fijian postage stamps, the Imperial Post Office should recover the amount of postage collected in Fiji, and transfer the amount payable to the Australian colonies, you will observe that the Postmaster-General considers that this would be an inconvenient and troublesome arrangement, and that he considers that it would be preferable that an understanding should be come to for the payment by Fiji of an annual contribution to the Governments of New South Wales and New Zealand for the use of their packets in the conveyance of Fijian mails, or that the Fijian Post Office should account directly to the other two colonies for so much of postage collected in Fiji as represents the sea postage on the mails thus conveyed. You will be so good as to communicate with the Governors of New South Wales and New Zealand in regard to the suggestions of the Postmaster-General, and you will inform me of the arrangement which may be come to upon the matter. I have communicated copies of the correspondence to the Governors of those colonies, including a copy of this despatch for their information. I have, &c, Governor the Hon. Sir A. H. Gordon, K.C.M.G. Carnarvon.

No. 5. Governor Sir A. H. Gordon to His Excellency the Governor of New Zealand. Sir, — Nasova, Fiji, 13th December, 1875. I have the honor to request that you will inform me at what rate your Government will undertake to forward mails between this colony and Great Britain, in closed bags, by the San Francisco Service. I venture to suggest that could the charges be fixed, the amount should be accounted for and paid direct by the Government of this colony to the Postmaster-General's Department of New Zealand rather than through the Postmaster-General's in London. I have, &c, To His Excellency the Governor of New Zealand. Arthur Gordon.

No. 6. The Hon. John Robertson to the Hon. the Colonial Secretary, New Zealand. Sir, — Colonial Secretary's Office, Sydney, 13th January, 1876. I have the honor to transmit to you a copy of a letter (to which is appended a copy of its enclosure) from the department of my colleague the Postmaster-General, propounding a plan for the settlement of accounts connected with the carrying of mails to and from the Colony of Fiji by the San Francisco Mail Service. I have the honor to request that you will have the goodness to inform me whether your Government is willing to adopt this proposal, which it is intended, with the concurrence of New Zealand, to submit for the acceptance of the Imperial and Fijian authorities. I have, &c, The Hon. Colonial Secretary, New Zealand. John Robertson.

Enclosure in No. 6. Mr. Lambton to the Principal Under Secretary, New South Wales. Sir, — General Post Office, Sydney, 4th January, 1876. Adverting to the subject of Lord Carnarvon's despatch dated the 7th September last, copy of which was received by this department with yours of the 22nd ultimo, and specially with reference to the latter portion of the letter enclosed in such despatch, addressed by Mr. Tilley to the Colonial Office on the 3rd September last (extract herewith), I am directed to inform you that it appears to the Postmaster-General that all that is necessary to be done, as regards the transmission of Fijian mails by way of San Francisco, is to place Fiji upon a precisely similar footing to the non-contracting Australian colonies; the arrangement being, that each colony pays to New South Wales and New Zealand, as responsible for the service, the following sums on account of all mail matter conveyed for such colony to and from San Francisco, viz.,— Letters.. .. .. .. .. .. Is. 7d. per oz. Packets .. .. .. .. Is. 6d. per lb. Newspapers .. .„ .. .. .. 6d. per lb.