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No. 9. The Hon. J. T. Fisheb to the Hon. J. F. Burns. (Telegram.) Wellington, 4th November, 1878. Agree as to telegram you propose send Agents-General re modified contract. Hon. J. F. Burns, Sydney. J. T. Fisher.

No. 10. The Agent-Genebal to the Hon. the Postmasteb-Genebal, Wellington. 7, Westminster Chambers, Victoria Street, London, S.W., Sib,— 10th October, 1878. I have the honor to forward to you the subjoined copy of a telegram sent by Mr. Forster to his Government at Sydney, after its terms were agreed upon between us and Mr. Mackrell. We have engaged Mr. Mackrell to prepare the new contract, lt is important it should be settled and signed by the end of the year, as the surety's consent to the present modified service only lasts till then. It is inexpedient, therefore, to do anything to occasion delay, and this would be the result of proposing anything in the contract wo know the Company could not agree to. It is unreasonable to ask the Company to provide five steamers, as three, and one spare one, are sufficient, and all it was intended they should employ under the modified service. But I think we should be firm on the point of the spare boat being stationed at Sydney. You will see my opinion on this subject in my letter* of 14th December, 1876, referred to in telegram. I have, Ac, Julius Vogel, The Hon. tho Postmaster-General, Wellington, New Zealand. Agent-General.

Enclosure in No. 10. Messrs. Mackrell and Co. to the Agent-General. 21, Cannon Street, London, E.C., sth October, 1878. Dear Sir Julius, — Varied Postal Contract. AYe send enclosed, as arranged, the draft of the telegram which we suggest you should send out to your Government, and to the Government of New South Wales, for further instructions. We have, Ac, The Agent-General for New Zealand, London. John Mackeell and Co.

Sub-Enclosure to Enclosure in No. 10. Draft of Telegram for the New South Wales and New Zealand Governments. Frisco Service. We are persuaded Company will not consent to five boats, and, as new contract should bo completed this year, not desirable to submit in contract more than four. Company will also object to spare boat at Sydney (see Vogel's letter, 14th December, 1876); but we think on this point Governments should insist. Communicate New Zealand, and instruct us.

No 11. The Hon. J. Ballance to the Agent-General. Sir,— General Post Office, Wellington, 7th December, 1878. I have the honor to acknowledge the receipt of your communication of the 10th October last, enclosing copy of a telegram sent by the Agent-General of New South Wales to his Government at Sydney, relative to the question of the number of boats to be stipulated for in the new contract, as to be maintained by the Pacific Mail Steamship Company iv the San Francisco Mail Service, the terms of the telegram having been agreed upon by Mr. Forster, Mr. Mackrell, and yourself. I now beg to forward, for your information, copies of the several telegramsf which have been exchanged on this subject between London, Sydney, and Wellington, and which will show the feelings and decision of the Governments of both colonies in the matter of the number of boats to be employed, and also as to the spare boat. In view of possible difficulties arising with the Contractors in the event of the spare boat at Sydney being insisted on, and which might have had the effect of prolonging injuriously the settlement of the new contract, both Governments agreed to leave the matter in the hands of their respective AgentsGeneral to make the best possible arrangements ; and I trust that, ere the close of the present year, you may have succeeded in completing all negotiations and procuring execution of the new contract. I have, Ac, The Agent-General for New Zealand, London. J. Ballance. * Tide F.—4, 1877, No. 127. t Vide F.-4A., 1878, Nos. sto 8.

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