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No. 22. The Hon. J. F. Burns to the Hon. the Postmaster-General, Wellington. Sir, — Sydney, 15th November, 1875. I have the honor to acknowledge the receipt of your letter, dated the 13th ultimo, forwarding therewith copy of a communication received by the Colonial Secretary, New Zealand, from Mr. Thomas Russell, relative to the permission which has been given to the San Francisco mail contractors to use the steamships "Mikado" and "Vasco de Gama" in initiating the new service from Sydney and Port Chalmers. I have, &c, The Hon. the Postmaster-General, Wellington, N.Z. J. F. Burns.

No. 23. Messrs. Gilchrist, Watt, and Co. to the Hon. the Postmaster-General, Wellington. Sir,— Sydney, 21st October, 1875. We have the honor to inform you that we were instructed by the Contractors for the San Francisco Mail Service to withdraw the " Mikado" s.s. from the temporary service in which she had been employed, and send her to Port Chalmers, there to begin the permanent mail service on the 17th November. As we have received no advice, however, of the ratification of the contract by New Zealand, and as the withdrawal of the " Mikado " would have been attended with heavy loss to the owners should the contract fail to be ratified, we have considered it expedient to avoid future complications by allowing the " Mikado " to proceed under the temporary service this month, and we have the " Cyphrenes " now here fitted to proceed to Port Chalmers, should we receive instructions to that effect, after we learn of the ratification of the contract by New Zealand. We annex copy of instructions received from the Contractors, showing the arrangements made for commencing the mail service at each port next month. We have, &c, Gilchrist, Watt, and Co., (on behalf of Contractors for Mail Service via San Francisco). The Hon. the Postmaster-General, Wellington.

Enclosure 1 in No. 23. Mr. Bacon to Messrs. Gilchrist, Watt, and Co. Agency, Pacific Mail Steamship Co., Gentlemen, — San Francisco, 12th September, 1875. The following telegram for your guidance, dated 10th instant, was received on that day from George S. Scott, Esq., Vice-President of this Company. We beg that you will comply with the directions therein given, as far as possible:—"Telegram, New York, 10th September, 1875. To A. P. Bacon, Agent P.M.S.S. Co., San Francisco. Instruct Gilchrist, Watt, and Co., Sydney, per ' Cyphrenes,' to advertise ' Vasco de Gama,' and book freight and passengers at old rates, for November month. Put full complement coal in ' Mikado,' twenty-two hundred tons. Their principal store can be put in at New Zealand. ' Mikado' must leave Dunedin 17th November for San Francisco. (Signed) Geo. S. Scott, Vice-President." The steamer " Vasco de Gama" will sail from San Francisco, 9th October, for Sydney, calling at Honolulu and Auckland. On the return voyage, she is to leave Sydney 19th November for Kandavau; thence to Port Chalmers (Dunedin), calling at New Zealand ports ; thence, 15th December, to Kandavau, calling at New Zealand ports _ thence to San Francisco, arriving 13th January, 1876. Our mail service will commence from San Francisco 10th November, per the steamer "Colima." From Sydney, 19th November, per steamer "Vasco de Gama." From Port Chalmers, 17th November, probably with "Cyphrenes." The steamer " Colima" leaves here 10th November for Sydney, calling at Honolulu and Kandavau, arriving at Sydney Bth December. Leaves Sydney 17th December for Port Chalmers, calling at Kandavau and New Zealand ports. Leaves Port Chalmers 12th January, 1876, calling at New Zealand ports and Kandavau, and arriving at San Francisco 10th February, 1876. We expect the " City of San Francisco " to follow the " Colima," sailing hence Bth December, 1876. Mr. Hall, who I understand is to be agent for this Company at Sydney, is expected to sail hence in the steamer of the 9th proximo, and will arrange further details. The "Vasco de Gama" wdl take coal at Sydney, sufficient for her return to San Francisco. The following rates of passenger fares apply to all points east of this port; say, San Francisco to—