F.—4a.

22

No. 34. Mr. Gbat to Mr. Cbeighton. Sib, — General Post Office, Wellington, 23rd August, 1877. I am directed to acknowledge the receipt of your communication of the 18th ultimo intimating that the Pacific Mail Steamship Company had decided to despatch the s.s. " Australia" for Auckland direct, omitting Honolulu, and enclosing copy of correspondence which had been exchanged on the subject. I am to express the thanks of the Postmaster-General for the prompt action taken by you in this matter. You will doubtless have observed, however, from the printed correspondence relative to the San Francisco Mail Service forwarded to you by last mail, that the action of the contractors in omitting to call at Honolulu was not altogether without warrant. Although the Governments of New South Wales and New Zealand expressed their willingness that the calling at Honolulu should be optional with the contractors, it was not anticipated that the Company would take advantage of the concession until such time as the modified service had been arranged. lam glad, however, to be able to inform you that the contractors now intend to revert to calling at Honolulu, at least so long as the pending modifications are unconfirmed. I have, &c, E. J. Creighton, Esq., W. Geat, Eesident Agent for New Zealand, San Francisco. Secretary.

No. 35. Messrs. Gilcheist, Watt, and Co. to the Hon. the Postmasteb-Genebal, Wellington. Sib — Sydney, 27th July, 1877. With reference to your favour of 31st March last, regarding the deduction of £59 12s. 3d. for Messrs Foster and Thomson's account, we have the honor to advise you that up to the present time the Government of New South Wales have not pressed the charge upon the contractors, and that, in an interview yesterday we had with the Postmaster-General in company with Mr. J. B. Houston, the late Vice-President of the Company, and who is at present on a visit to the colony with a view of closing the various open questions between the Colonial Governments and the contractors, our Postmaster stated that if your Government would forego the claim ours would not press it, as Mr. Houston shows that it is really not a charge that can fairly be made upon the contractors, inasmuch as the counsel was engaged for the benefit of the Governments. We hope, therefore, you will reconsider your decision, and refund the £59 12s. 3d. deducted from the contractors. We have, &c, Gilcheist, Watt, and Co., General Agents for the Contractors, San Francisco Mail Service. The Hon. the Postmaster-General, Wellington.

Vide No. 51. P. 4.

No. 36. Mr. Gbay to Messrs. Gilcheist, Watt, and Co., Sydney. Gentlemen, — General Post Office, Wellington, 6th August, 1877. I am directed to acknowledge the receipt of your communication of the 27th ultimo, in further reference to the sum of £59 12s. 3d, deducted from the subsidy payable in the month of July of last year to provide for payment of Messrs. Foster and Thomson's account; and I am to inform you, in reply, lhat, as it is probable advice may be received by the next English mail as to the action taken by the Agent-General in this matter, the Postmaster-General would prefer that the question of foregoing the claim, as mentioned in your letter, remain in abeyance until the receipt of a, communication from the Agent-General. I have, &c, W. Geat, Messrs. Gilchrist, Watt, and Co., Sydney. Secretary.

No. 37. The Hon. G. McLean to the Agent-General, London. g IB _ General Post Office, Wellington, 3rd April, 1877. I have the honor to forward for your information a copy of further correspondence which has taken place since the date of my communication of the 6th January last, in connection with a claim preferred by Messrs. John Mackrell and Co., of London, for costs incurred by their New York agents, Messrs. Foster and Thomson, in arranging the legal preliminaries of the present San Francisco Mail Contract. I have, <fec, Sir Julius Vogel, K.C.M.G., Geo. McLean, Agent-General for New Zealand, London. Postmaster-General.