E.—4

7

of the present service as a mail route, will also tend to increase the popularity of the line as a travelling medium. I have, &c, W. Ghat, Messrs. Williams, Blanchard, and Co., Secretary. Agents for the Pacific Mail Steamship Company, San Francisco.

No. 13. Mr. Lambton to the Seceetaet, General Post Office, "Wellington. Sib,— Sydney, 12th April, 1878. I have the honor to acknowledge the receipt of your communication of the ]Oth January last, forwarding copies of correspondence recently addressed by Mr. R. J. Creighton, the Resident Agent of your Department at San Francisco, to Sir Julius Vogel and yourself, and am directed by the Postmaster-General to reply as follows to the various points mentioned in the 4th paragraph of your letter, viz. : —■ No. 1. Arrangements were concluded (after consultation by telegram with the Postmaster-General of New Zealand) with Mr. Houston, during his visit here in August last, to have the Pacific mail steamers despatched from San Francisco immediately on the arrival of the London mails from New York, instead of waiting until the date specified in the time-table. No. 2. It is thought that Mr. Creighton is, under existing circumstances, doing all that is practicable to shorten the transit of mails across the continent of America. It will, no doubt, be borne in mind that, so long as this matter is dealt with between the Imperial Government and the United States, it is difficult for the colonies to interfere with the question, and highly problematical whether any practical result would be arrived at. No. 3. The question of the postponement of the steamer at Sydney, contingent upon an increased rate of speed being maintained, would seem to require a definite expression of opinion from the Contractors on the latter point, and it would perhaps be desirable, if the Agents of your Government who accompany the steamers every month consider an acceleration of speed practicable, to open up communication with the Contractors on the subject. Perhaps you will kindly obtain reports from your Mail Agents. No. 4. Before improving the Atlantic connection, it is thought, as already expressed (vide No. 2), that the colonies should have more control over the whole service ; but at the same time it is not perceived that there is much cause for complaint of delays in transit, and Mr. Burns is of opinion that the San Francisco Service —as yet only in its infancy—will compare favourably with the oldestablished Galle and Suez line; but of course it would be very desirable to remove whatever unnecessary delays do occur. No. 5. All Australian mails will, in future, be enclosed in Sydney bags, as requested. No. 6. This Department quite approves of the suggestion that, in cases where the mail steamers may arrive late for the through train, and a possibility may exist of overtaking it, a special mail train should be engaged, and that the Mail Agent of your Department should go forward in charge of all the colonial mails, and see them safely transferred to the through train, being carried out whenever necessary. It is stated in your communication under notice that there is no doubt that, if joint representations were made to the Contractors, great improvements could be effected ; but this is scarcely clear, as, the contract being only for the conveyance of mails between New South Wales, New Zealand, and San Francisco, it seems that only two out of the six points submitted in any way concern the Contractors. The first of these, No. 1, has already been dealt with, and the other, relating to the acceleration of speed of the Contractors' steamers, can, as already stated, be referred to them, if thought advisable. I have, &c, 8. H. Lahbton, The Secretary, General Post Office, Wellington. Secretary.

No. 14. Mr. Gbat to the Seceetaey, General Post Office, Sydney. Sib,— General Post Office, Wellington, 20th July, 1878. I am directed to acknowledge the receipt of your letter of the 12th April last, in reply to mine of the 10th January, communicating certain suggestions in connection with the San Francisco Mail Service, made to this Department hy Mr. E. J. Creighton, of San Francisco. Taking seriatim the replies made by you, I have to remark as follows : — (1.) The Despatch from San Francisco. —That while arrangements had been concluded with Mr. Houston in August last, as stated by you, to despatch the Pacific mail steamers from San Francisco immediately on the arrival of the London mails from New York instead of waiting until the date specified in the time-table, such arrangements, I would point out, have been devoid, with one exception, of any practical results. As a case in point, I may mention that the Mail Agent who left San Francisco in April last, per " Zealandia," reports that the inward English mails arrived at San Francisco on the 14th April, but that the mail steamer did not sail for Auckland until the following day at noon. (2.) The Trans-Continental Journey. —lt is still believed that, were joint representations made by the Colonial Governments to the Contractors, aided by the personal efforts of Mr. Creighton, they would be productive of satisfactory results, more especially as the Pacific Mail Company must, from the magnitude and scope of their transactions, be