F.—3d

2

No. 5. The Hon. the Colonial Seceetaet, New South Wales, to the Hon. Sir J. Vooel. (Telegram.) Sydney, Ist September, 1876. Could not, for several reasons—amongst others, feeling sure that English Postal authorities would not— concur in proposal for calendar months. We are inclined to view favourably calling Bay Islands and Honolulu, discontinuing New Zealand Coastal Service. Think eighty thousand excessive for this service, but that whatever reduction is made in amount of existing contract should, less reasonable allowance for your coastal service, be divided equally ; also, that Fijian correspondence be delivered Bay Islands for postage only. The Hon. Sir Julius Vogel, Wellington. Colonial Seceetaet.

No. 6. Messrs. Gilcheist, Watt, and Co., to the Hon. the Postmaster-General, Wellington. (Telegram.) Wellington, 16th September, 1876. Pacific Mail Company confirm telegram 13th July, forwarded to you 21st ult., and request early decision, as consideration of life and property paramount, and demand immediate change. In fact, only two alternatives open to them : Modification to C or Bay Islands route, avoiding difficulties, and Coastal Service, and dangers of Fiji navigation; or entire abandonment of service. Please telegraph your decision, as we are instructed to cable to President without delay, and we fear, unless matters promptly settled, these magnificent ships will be withdrawn from the colonies, as it is better for Contractors to pay forfeit than risk their loss, or continue trade manifestly disastrous. Gilchrist, Watt and Co. The Hon. the Postmaster-General, Wellington.

No. 7. The Hon. F. Whitakeb to Messrs. Gilcheist, Watt, and Co. (Telegram.) Wellington, 16th September, 1876. The question of Pacific Mail Contract is now being considered by Select Committee of House of Representatives. Will obtain its decision as soon as possible, and advise you. Messrs. Gilchrist, Watt, and Co. Feed. Whitakee.

No. 8. Messrs. Gilcheist, Watt, and Co., to the Hon. the Postmaster-Genehal, Wellington. Sic,— Sydney, 29th September, 1876. With reference to your favour of sth July, in reply to our respects of 29th May, we have again the honor to address you regarding a change in the San Francisco Mail route, and to confirm the telegrams we sent to you on 21st and 23rd August, and 16th instant, of which copies are enclosed herein, as also correct reading of message from letter dated 13th July from the Pacific Mail Steamship Company. On the 16th instant we had the honor to receive your message —" Question of Pacific Mail Contract is now being considered by Select Committee of House of Representatives. Will obtain decision as soon as possible and advise you " —but have not yet had any further advices on the matter. We now beg to hand you copies of letters received by last mail from Mr. J. B. Houston, the second Vice-President of the Pacific Mail Company, dated sth August, and from Mr. W. P. Clyde, the President, dated Bth August, which we hope may receive your attentive and favourable consideration. We have been in communication with the Government of New South Wales on the matter, and beg to enclose their reply to our latest communication, dated 21st September. We hope that some early determination may be come to, to avoid the withdrawal from our waters of these magnificient ships of the Pacific Mail Steamship Company, by a change in the route to one of safety, as the recent performances of the steamers have been so successful. We cabled to you the arrivals at San Faancisco of the " City of New York " on 2"sth August, and the "Zealandia " on 20th September (the latter advice reached us first), and the sailing of the former vessel from San Francisco on 13th September. It is a satisfaction to observe that the mails were delivered in London on 12th September, two days in advance of schedule time. We have no reply from you yet as to bearing half-cost of such cable advices. We have, &c, The Hon. the Postmaster-General, Wellington. Gilcheist, Watt, and Co.

F.—3b. Noj, 20 and 22.

Enclosure 1 in No. 8. Mr. J. B. Houston to Messrs. Gilcheist Watt, and Co., Sydney. Office of Pacific Mail Steamship Company, No. 6, Bowling Green, Gentlemen, — New York, sth August, 1876. We regret exceedingly to learn, from your favour of June 30th, that no progress has been made in the matter of " change of route," and we now write to urge upon you the necessity of taking such steps as will induce the respective Colonial Governments to decide the matter. The whole subject has already been so fully discussed that it is not now necessary to go over the details, but will herein touch only upon the most obvious reasons for a prompt decision.