F.—4,

42

crist, that I consent to the steamers of the Pacific Mail Company going by way of Auckland, and mitting Fiji, in fact temporarily adopting the plan of the modified service, as arranged between the ate Administration, the Government of New Zealand, and the Contractors, the New Zealand Government undertaking its own coastal service ; and the Contractors to be paid at the rate of seventy-two thousand five hundred pounds per annum, of which amount forty thousand pounds to be contributed by New South Wales, and thirty-two thousand five hundred pounds by New Zealand. It is, however, to be distinctly understood that this arrangement only assented as a temporary measure, pending the decision of the New South AVales Government and Parliament as to the question of a modification of the San Francisco Mail Service, and that this assent is in no way to prejudice the existing contract, should it hereafter be decided to be inexpedient to agree to the permanent modification of the service." Gilchrist yesterday acknowledged this letter as follows : —"We have the honor to acknowledge receipt of your letter of second May, consenting to the mail steamer going by way of Auckland, omitting Fiji, on the understanding that this assent is of a temporary nature, pending the decision of Parliament as to tho question of modfiication of route. AYe thank you for the consent as above contained." Trust this will be satisfactory as temporary arrangement, pending recovery of Premier from severe illness, when permanent arrangements of the service will be considered in Cabinet. The Hon. the Postmaster-General, Wellington, Saul Samuel.

No. 146. The Hon. Saul Samuel to the Hon. the Postmastee-Geneeal, Wellington. (Telegram.) Sydney, 4th May, 1877. Re time table 'Frisco Service: In view of position of matters in England, upon which we presume you have been fully informed, we might unite in paying subsidy of say one hundred pounds (fifty pounds each) per trip for conveyance of mail across Atlantic by fast Inman or White Star steamer on suitable day. This amount would be paid to packet iv addition to the sum (understood to be about seventy pounds) paid by Imperial Government for conveyance of these mails across Atlantic. By last telegram Thursday is reverted to, but it may be only as a temporary measure. Our efforts should be to maintain regularity and certainty in time table. The Hon the Postmaster-General, Wellington. Saul Samuel.

No. 147 The Hon. Geo. McLean to the Hon. the Postmastee-Geneeal, Sydney. (Telegram.) Wellington, 12th May, 1877. We are satisfied with arrangement, but are very anxious for permanent settlement of question; we therefore hope you will urge it forward as soon as possible. The Imperial Government has undertaken the delivery of mails across the Atlantic, and we think that a representation as to the present unsatisfactory service ought to be sufficient without a supplementary contribution. On final adoption of modified service, a rearrangement of the time table will be necessary to insure regularity. Geo. McLean, The Hon. the Postmaster-General, Sydney. Postmaster-General.

No. 148 Messrs. Gilcheist, Watt, and Co. to the Hon. the Postmastee-Geneeal, Wellington. Sic,— Sydney, 4th May, 1877. We have the honor to hand you herewith copy of letter dated 2nd May, received by us from the Hon. the Postmaster-General of New South Wales. We have, &c, Gilcheist, Watt, and Co., General Agents for the Contractors, San Francisco Mail Service. Tho Hon. the Postmaster-General, AVellington. PS.—The " City of Sydney " therefore leaves to-day via Auckland and Honolulu for San Francisco.

Vide No. 145

No. 149 Mr. Geay to Messrs. Gilcheist, Watt, and Co. Gentlemen,— General Post Office, Wellington, 16th May, 1877. I am directed to acknowledge the receipt of your communication, dated the 4th instant, covering copy of a letter dated the 2nd instant, received by you from the Hon. the Postmaster-General of New South Wales, and adding a postscript to the effect that, in accordance with the permission granted, the " City of Sydney "would be despatched for San Francisco on the 4th instant via Auckland and Honolulu only. I have, &c, W. Geay, Messrs. Gilchrist, AVatt, and Co., Sydney. Secretary.