F.—4,

32

if Bay of Islands port of call, ten thousand pounds. We mean by this to relieve Contractors from coastal service, leaving port of call to be settled by you with Contractors, we requiring a deduction from subsidy of seventy-five thousand pounds to cover cost of coastal service, as follows: —If Auckland port of call, five thousand pounds; if Bay, ten thousand pounds ; leaving Contractors to receive in one case seventy thousand pounds, and in the other sixty-five thousand pounds; saving on contract to be shared equally between colonies, and actual cost of coastal service to be paid in equal shares. The Hon. the Colonial Secretary, Sydney. Feedk. Whitakee.

No. 109. Messrs. Gilcheist, Watt, and Co. to the Hon. the Postmastee-Geneeal, Wellington. Sic,— Sydney, 21st October, 1876. We have the honor to advise the receipt of the following letter from the head office, New York :— " New York, sth September, 1876. " Gentlemen, —If you should find it possible at any time, we would thank you to try and induce your Governments to strike out from our contract the clause requiring our steamers to call at Honolulu. " The Government at Sandwich Islands promises us a small subsidy, but never pay. You will see that, while it is our highest interest to make the call, the Government would be more prompt in paying if the option was with us, instead of being compulsory. " By giving this your attention, you will oblige, " Yours very respectfully, " Messrs. Gilchrist, Watt, and Co." " J. B. Houston, Second Vice-President. AYe have the honor to request that you will approve of the above application being carried into operation. We have, &c, Gilcheist, Watt, and Co., General Agents for the Contractors, San Francisco Mail Service. The Hon. the Postmaster-General, Wellington.

No. 110. Mr. Geay to Messrs. Gilcheist, Watt, and Co. Gentlemen, — General Post Office, Wellington, 15th November, 1876. I have been directed by the Postmaster-General to acknowledge the receipt of your letter of the 2lBt ultimo, advising him of the receipt by you of a communication from the head office of the Pacific Mail Steamship Company, dated from New York on the sth September last, asking that the Colonial Governments be requested to approve of the excision from the contract of the clause requiring the steamers to call at Honolulu. I am directed to inform you that this Government has no objection to the elimination from the contract of the clause in question I have, &c, W. Geay, Messrs. Gilchrist, Watt, and Co., Sydney. Secretary.

No. 111. Messrs. Gilcheist, Watt, and Co. to the Hon. the Postmastee-Geneeal, Wellington. Sic,— Sydney, 28th November, 1876. We have the honor to acknowledge receipt of your letter of 15th instant, and to thank you for the consent, therein contained, to the excision from the contract of the clause requiring mail steamers to call at Honolulu. We have, Ac, Gilcheist, Watt, and Co., General Agents for the Contractors, San Francisco Mail Service. The Hon. the Postmaster-General, AVellington.

No. 112. Mr. Halloean to the Hon. the Colonial Seceetaey, Wellington. Sib — Colonial Secretary's Office, Sydney, 25th October, 1876. I have the honor to acknowledge the receipt of your letter of the 14th instant, forwarding resolutions with reference to modification of the San Francisco Mail Service. I have, &c, The Hon. the Colonial Secretary, AVellington. Heney Halloean, (for the Colonial Secretary).

1876. F. 3e, No. 4.