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Enclosure in No. 71. The Postmaster-General, New Zealand, to the Pacific Mail Steamship Company. For conveyance of mails from San Francisco to Auckland as per contract, £1,729 16s. 2d. Time commences at 1.7 p.m. on 11th December, 1875, terminating 5.50 p.m., Ist January, 1876. Whole time from San Francisco to Auckland, including detention at Honolulu, 508 hours 43 minutes. H. H. Hall, Sydney, 15th January, 1876. General Agent, Pacific Mail Steamship Company.

No. 72. Mr. Tolhurst to the Postmaster-General. Sir, — Bank of New Zealand, Wellington, 9th March, 1876. On behalf of the Pacific Mail Steamship Company, I have the honor to hand you herein memorandum of account amounting to £1,729 16s. 2d., being subsidy due as per contract for the conveyance of mails from Auckland to San Francisco by the s.s. " Vasco de Gama." I also beg to hand you herewith letter received from the Company's agents in Sydney, Messrs. Gilchrist and Watt, and shall be much obliged by your favouring me with an early reply, in order that I may advise our Sydney office by the mail leaving per "Arawata" on Saturday next. I have, &c, George E. Tolhurst, The Hon. the Postmaster-General, Wellington. Manager.

Enclosure 1 in No. 72. Messrs. Gilchrist, Watt, and Co. to the Postmaster-General. Sir,— Sydney, 24th February, 1876. We have the honor to enclose claim for subsidy iv respect of conveyance of mails per " Vasco dc Gama " from Auckland to San Francisco. There was no other contract steamer available in the colonies to commence the service, and the only course open to the representatives of the Contractors, in fairness to both the contracting colonies, was to send the " Vasco de Gama" via Auckland, after the refusal of permission to scud the " Cyphrenes " a special trip. The mails were conveyed from the southern ports to Auckland at the cost of the Contractors. In consequence of the "Vasco de Gama" proceeding via Auckland, the PostmasterGeneral of this colony has, up to this time, declined to recognize the claim to subsidy, notwithstanding that we despatched the " Cyphrenes " from this direct to Kandavau with later mails, which were there transhipped to " Vasco de Gama," while " Cyphrenes " proceeded to perform the New Zealand coastal service, pending the arrival of another ship. We were aware when the " Vasco de Gama" proceeded via Auckland that the Contractors imperilled the payment of subsidy by this colony under the strict letter of the contract, but we trusted to the liberal consideration of both Governments for the difficulties attending the initiation of a new service, aud the course taken we think was, under the circumstances, the only proper course in the interests of the two contracting colonies; and we venture to ask, not only that the Government of New Zealand will recognize the claim for the conveyance of their mails, in consideration of the deviation having been made in the interest of New Zealand, but that you will suggest to this Government that a liberal view should be taken of the claim for the New South Wales subsidies. We have, &c, To the Postmaster-General. Gilchrist, Watt, and Co.

Enclosure 2 in No. 72. The Postmaster-General, New Zealand, to the Pacific Mail Steamship Company. For conveyance of mails per " Vasco de Gama," from Auckland to San Francisco, as under, £1,729 16s. 2d. Note. —Time commenced p.m., 25th November, 1875 (precise hour not known), and terminated 3.40 a.m., 21st December, 1875, bringing the time within 591 hours. Sydney, 24th February, 1876. Gilchrist, Watt, and Co.

No. 73. Mr. Gray to the Manager, Bank of New Zealand. Sir,— General Post Office, Wellington, 11th March, 1876. I have been directed by the Postmaster-General to acknowledge receipt of your communication of the 9th inst., forwarding a letter addressed to the Postmaster-General of this