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"He Cunningham. Accept offer ten thousand. Obtain money soon as possible, and stay further proceedings. New Zealand Government concurs." Will you therefore be good enough to take the necessary steps, in pursuance of the above instructions. A copy of the telegram has been sent to Sir Julius Vogel. I have, &c, A. A. Jopp, Captain, K.E., Messrs. Mackrell and Co. Secretary.

Enclosure 10 in No. 2. Messrs. Mackrell and Co. to the Hon. Sir Julius Vogel. 21, Cannon Street, London, E.C., 25th April, 1877. Dear Sir Julius, — Old Postal Contracts. We have seen Mr. Lloyd, who is acting for the New South Wales Government in this matter, and we purpose to send to our agents, Messrs. Foster and Thomson, of New York, the following telegram, provided it meets with your approval: — " Offer made in Sydney on behalf of Forbes and Cunniugharn to pay ten thousand pounds in settlement of all claims against them under both postal contracts. Colonial Governments authorize acceptance if paid immediately in gold. Try and settle. Remit through Barings. Telegraph result." We shall be glad to hear as early as possible whether you approve it or not. We have, &c, The Agent-General for New Zealand. John Mackrell and Co.

Enclosure 11 in No. 2. Messrs. Mackrell and Co. to the Hon. Sir Julius Vogel. 21, Cannon Street, London, E.C., 28th April, 1877. Dear Sir Julius,— Mail Service. As you are going to see Mr. Forster, we send for your information and guidance a note of the points which it seems to us must be provided for in the proposed new arrangement. 1. To give power to the Governments to settle a new time-table for the new temporary service, and bind the contractors to carry out the same as early as practicable. 2. To stipulate as to the number of boats to be employed for the service, and where a spare boat shall be located. 3. To define the route to be taken. 4. To define the number of hours within which the service is to be performed to eacli of the colonies, and the number of hours in excess, on account of which the deduction of £100 is to be made for the 10i and 10-knot services. With reference to this, it should be stipulated how long the vessel should stop at Auckland, as otherwise the company may not give the colony a sufficient time for the convenience of passengers, &c. 5. To define the payments to be made by each colony. 6. To declare as to whether any bonus, as under the contract, is to be paid. 7. To relieve the contractor from the coast service in New Zealand. 8. To provide as to the mode' in which the temporary arrangement may be determined, and the old service reverted to, and whether this may be done by the Government of one colony, or whether both are to consent. The most convenient mode of giving notice would seem to be the settlement of a new time-table, and a notice to the contractors requiring them to carry it out as early as practicable. The sureties will have to concur in the arrangement, and it would be as well to get them to sanction, as you suggest they should do, all that has hitherto been done. We have, &c, The Agent-General for New Zealand. John Mackrell and Co.

No. 3. The Agent-General to the Hon. the Postmaster-General, "Wellington. 7, Westminster Chambers, Victoria Street, Westminster, S.W., Sib,— 3rd May, 1877. In continuation of my letter of yesterday's date, I have the honor to enclose you a copy of a letter which I have received from Messrs. Mackrell and Co. on the eve of the closing of the mail, in which they report the progress made in regard to the settlement of the terms of the deed binding the assent of the sureties to the alterations made in the arrangements of the mail service. I have, &c, Julius Vogel, The Hon. the Postmaster-General, Wellington. Agent-General.