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F.—3

The mail of this moruing brings us the duplicate of the letter to us of the 14th December, of which we sent you a copy. The Agents-General for New Zealand and We have, Ac, New South Wales, London. John Mackeell and Co.

Enclosure 7 in No. 20. Messrs. John Mackeell and Co. to the Agents-Geneeal for New Zealand and New Souin Wales. 21, Cannon Street, London, 24th January, 1879. Gentlemen, — Mail Contract. In compliance with your instructions we have telegraphed to Messrs. John Elder and Co., as follows: —" Letters Pacific Company imply delay setttloment mail contract rests with you. AgentsGeneral instruct us ask cause delay. Eeply paid." And w-e have also telegraphed to our agents at New York as follows: —" Ascertain cause delay settling Pacific contract. Governments require matter dealt with. Cable reply. The Agents-General for New Zealand and We have, Ac, New South Wales, London. John Mackeell and Co.

Enclosure 8 in No. 20. JJ Messrs. John Mackeell and Co. to the Agents-Geneeal for New Zealand and New South Wales. 21, Cannon Street, London, 28th January, 1879. Gentlemen, — Mail Contract. In reply to the telegram we sent to Messrs. John Elder and Co., they informed us that they had sent instructions to their solicitor to see us on the matter. Accordingly their solicitor, Mr. Lyne, called upon us yesterday, and explained that Messrs. Elder and Co. could get no reply to their communications to the Pacific Mail Steamship Company, and that they hardly knew what course to take; that Mr. Ure was retiring from business on account of ill health, and that most probably Mr. Jamieson would do the same ; that Mr. Pearce, the remaining partner, contemplated taking some one to join him in the business, and those two would be prepared to enter into a new bond ; but they did not know who to propose in the place of Mr. Macgregor, but hoped the Governments would be satisfied with their firm unless the Pacific Company were prepared to propose another surety. Since then our agents in New York have replied to the message which we sent them, as you instructed, and state as follows : —" Pacific accepts contract, but cannot furnish other security than Elder." We told Mr. Lyne that we thought the question of another surety would be very much affected by who might be the new partner of Mr. Pearce, because, of course, the firm of John Elder and Co. must be necessarily weakened in capital by the withdrawal of Mr. Ure and Mr. Jamieson. We are afraid that unless the two Governments are content to accept the suretyship of John Elder and Co., the contract is likely to remain in abeyance for some time; and we suggest for your consideration whether it would not be desirable for you to cable for instructions as to the course which shall be taken. We have, Ac, The Agents-General for New Zealand and John Mackeell and Co. New South Wales, London.

Enclosure 9 in No. 20. Memorandum by the Secretary to the Agent-General for New South Wales to the AgentGeneral for New Zealand. Me. Foesteb yesterday personally instructed Messrs. Mackrell and Co. in accordance with Sir Julius Vogel's minute of that date, which was as follows: — " Take on surety at once, and settle matters as quickly as possible," in which Mr. Forster concurred. Messrs. Mackrell were requested to report progress without delay. A. A. Jopp, Captain, E.E., 30th January, 1879. Secretary, New South Wales Government Agency.

No. 21. The Hon. J. T. Fisher to the Agent-General. Sir,— General Post Office, Wellington, 24th March, 1879. I have the honor to acknowledge the receipt of your communication of the 30th January last, enclosing copies of correspondence with the solicitors of tho Government, showing the steps taken at the joint instance ofthe Agent-General for New South Wales and yourself, towards forwarding the completion of the new contract with the Pacific Mail Steamship Company. The delay referred to by you is regretted, but appears to have been unavoidable under the circumstances. I enclose for your information copies of the telegrams* which have been exchanged between the Hon. the Postmaster-General of New South AVales and myself, on the subject under notice. I have, Ac, The Agent-General for New Zealand, London. J. T. Fishee. * Vide Nos. 15 to 18.