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P.—3c

No. 19. The Colonial Secretary to his Honor the Superintendent, Otago. Sir, — Colonial Secretary's Office, Wellington, 31st July, 1876. I have the honor to acknowledge the receipt of your letter of the 12th instant, forwarding the official report of the Otago Harbour Master relative to the alleged grounding of the " City of San Francisco" at Otago Heads ; and to inform you that, in accordance with your request, a copy has been forwarded to the Select Committee of the House of Representatives upon the San Francisco Steam Service. A copy has also been sent to Messrs. Gilchrist, Watt, and Co., the General Agents for the contractors. I have, &c, His Honor the Superintendent of Otago, Wellington. Daniel Pollen.

No. 20. Messrs. Gilciirist, Watt, and Co., Sydney, to the Hon. the Postmaster-General, Wellington, Sir,— Sydney, 28th July, 1876. We have the honor to acknowledge receipt of your letter of 17th July, and to thank you for the information therein contained. Wo send by the present out-going mail to the Contractors copies of the letter and documents attached. We have, &c, Gilchrist, Watt, and Co., General Agents for the Contractors, San Francisco Mail Service. The Hon. the Postmaster-General, Wellington.

No. 21. MncOBAXOVU for the Hon. the Postjiaster-General. (Saw Francisco Service Payments.

Sums paid or agreed to be paid by : — Xow South Wales. New Zealand. £ s. d. £ I. d. "Colima" (inward, December) ... ... ... Nil. Nil. " City of San Francisco " (inward, January) ... 1,729 0 0* 864 0 0 "Granada" (inward, February) ... ... ... Amount earned 814 0 0 " Granada," coastal service ... ... ... ... 225 0 0 " Mikado"-" Colima" (inward, March) ... ... Amount earned 1,529 0 0 " Vasco de Gama" (outward, November) ... ... 1,019 0 0 1,019 0 0 " Mikado" (outward, January) ... ... ... Amount earned 1,237 0 0 " City of San Francisco" (outward, February) ... „ 1,729 0 0 Already paid ... ... ... ... ... 6,GG9 0 0 4,072 0 0 Agreed to pay ... ... ... ... 2,748 0 0 3,345 0 0 £9,417 0 0 £7,417 0 0 From New Zealand deduct half of sum agreed to be paid " Granada " for Coastal Service, and add to New South Wales 112 10 0 112 10 0 Total payments ... ... ... £9,529 10 0 £7,304 10 0 W. Geat. General Post Office, Wellington, 6th July, 1876.

No. 22. Sir Daniel Cooper, Bart., Sydney, to the Hon. Sir J. Togel, "Wellington. Sir, — , "VVoollahra House, Eoso Bay, Sydney, 3rd July, 1876. In reply to your letter of June last, with respect to the detention of the " City of San Francisco," at Sau Francisco, from 29th March to 3rd April, in which you ask if she was detained at my request, or if I had condoned the detention, or in any way committed the colony to the detention, I beg to state that I only arrived at New York late on the evening of 28th March, that I was with Mr. Houston nearly all day on 29th, explaining all matters connected with the contact, and showing how groundless were the assumptions that the New South Wales and New Zealand Governments wished in any way to break the contract or treat the contractors in any but a liberal manner. After Mr. Houston had consulted with his directors, it was agreed to despatch the " City of San Francisco " with as little delay as possible, and I forwarded a telegram to you and the Colonial Secretary, at Sydney, which exactly expressed all that 1 promised. * The sum agreed at Conference to bo paid " City of San Francisco " was half subsidy (£BG4). New South Wales now desires to make full payment. (77<?e telegram of'lth July, F. 3b, Xo. 23.)

P. 3, No. 198.