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which the service is now being performed by the Contractors, the New Zealand Government has agreed to complete the payment for those services on the same basis as has been adopted by the Government of New South Wales, but on the understanding that such payment will be accepted by the Contractors as payment in full for all outstanding claims. Attached to this letter you will find a statement showing the payments which will be made in favour of the Contractors, which sum will be placed to your credit with the Bank of New Zealand here. I have, &c, Feedk. Whitakee, Messrs. Gilchrist, Watt, and Co., Sydney. Postmaster-General.

Enclosure in No. 64. STATEMENT showing the Sums agreed to be paid the San Francisco Mail Service Contractors by the New Zealand Government in respect of the under-mentioned Services.

No. 65. Messrs. Gilcheist, Watt, and Co., to the Hon. the Postmastee-Geneeal, Wellington. Sic, — Sydney, 29th September, 1876. We have the honor to acknowledge receipt of your cablegrams— Dated 22nd instant: " Government decided to make payment for early voyages on same basis as Sydney. You will receive letter by first mail." Dated 27th instant: "' Vasco,' £1,529165. 2d.; ' Mikado,' £1,529 16s. 2d.; ' City of San Francisco,' £1,729 16s. 2d.; ' Granada,' £225 —total, £5,014 Bs. 6d. —scheduled yesterday for payment;" —and we thank you for your settlement of these long outstanding matters. We also had the honor to ask payment for " City of San Francisco " inward subsidy, and have received advice of lodgment. The subsidies for " City of New York " and " Zealandia " have also since become payable. We have, &c, The Hon. the Postmaster-General, Wellington. Gilcheist, Watt, and Co.

No. 66. Messrs. Gilcheist, Watt, and Co., to the Hon. the Postmastee-Geneeal, Wellington. Sic,— Sydney, 17th October, 1876. We have the honor to acknowledge receipt of your letter of the 23rd September with respect to the early subsidies, aud to state that the amount mentioned in the statement (£5,014 Bs. 6d.) has been received by us from the Bank of New Zealand on the 13th instant. We have, &c, Gilcheist, Watt, and Co., General Agents for the Contractors, San Francisco Mail Service. The Hon. the Postmaster-General, Wellington.

No. 67. Messrs. Gilcheist, Watt, and Co., to the Hon. the Postmastee-Geneeal, Wellington. Sic, — Sydney, Bth September, 1876. By the Sydney office of the Bank of New Zealand, we are this morning advised of the payment of £3,804 12s. 4d. to our credit in Wellington; but Mr. Gray's telegram of 21st ultimo stated £3,759 12s. 4d. to be the earnings of the " Australia's " double trip, which amount was to have been lodged in the bank on the 22nd August. AYe have the honor to request that you will favour us with an explanation of difference between the amount mentioned by Mr Gray and the actual lodgment as above. We have, &c, The Hon. the Postmaster-General, Wellington. Gilcheist, Watt, and Co.

Service for which Payment is agreed to be made. Amount originally offered. Payment now agreed to be made as a Final Settlement. " City of San Francisco," inward, December " Granada," inward coastal, February "Vasco de Gama," outward, November " Mikado," outward, January £ 864 225 1,019 1,237 8. 0 0 0 0 d. 0 0 0 0 £ s. 1,729 16 225 0 1,529 16 1,529 16 d. 2 0 2 2 £3,345 0 0 £5,014 8 6 General Post Office, Wellington, 22nd September, 1876. AV. Geay.