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No. 46. Mr. Gray to the Hon. the Postmaster-General, Sydney. Sir, — General Post Office, Wellington, Ist February, 1879. I have the honor to acknowledge the receipt of your communication of the 10th ultimo, forwarding copy of correspondence addressed to you by Messrs. Gilchrist, AVatt, and Co., the Sydney agents for the Pacific Mail Steamship Company, embodying a proposal by the Contractors for the San Francisco Mail Service for the performance of the service with three boats, in place of four, as at present. In reply I beg to inform you that, previously to the receipt of your letter, the matter under notice had been disposed of by telegraph, and both the Contractors and the Agent-General advised of the joint decision of the contracting Governments not to accede to the proposal. I have, Ac, W. Gray, The Hon. the Postmaster-General, Sydney. (for the Postmaster-General.)

No. 47. The Agent-General to the Hon. the Postmasteb-Genebal, Wellington. Sic, — 7, Westminster Chambers, London, S.W., 7th November, 1878. I have the honor to forward to you the copy of a letter, with enclosures, received from Messrs. Charles Clark and Co. On its receipt, Mr. Forster, who had received a similar letter, and I agreed to make joint reply, copy enclosed. I also forwarded to you a telegram, copy appended, and Mr. Forster sent a similar one to his Government. Mr. Forster concurs with me in entirely disapproving the proposal contained in Messrs. Clarke and Co.'s letter. I have, Ac, Julius Vogel, The Hon. the Postmaster-General, AVellington. Agent-General. P.S. —Since the above was written, I have received from tho New South Wales Agency copy of the following telegram from Sydney : —" Has been arranged with New Zealand to continue time-table for Frisco service on present basis. Instruct accordingly. —Secbetaey."—J. A T.

Enclosure 1 in No. 47. Messrs. C. Clabke and Co. to the Agent-General. Windsor Chambers, Great Saint Helen's, London, E.C., Dear Sir,— 28th October, 1878. At the request of the Pacific Mail Steamship Company we beg to hand you enclosed copy of a letter dated 14th instant, which wo have received from the Company, and of a proposed mail schedule for 1879, referred to therein. We shall be glad to be favoured with an expression of your views on the subject. We are, Ac, Sir Julius Vogel, K.C.M.G., Chas. Clarke and Co. Agent-General for New Zealand, 7, Westminster Chambers.

Sub-Enclosure to Enclosure 1 in No. 47. The Peesident, Pacific Mail Steamship Company, to Messrs. C. Claeke and Co. Deae Sibs,— New York, October 14th, 1878. Enclosed we hand you copy of a proposed time-table for the Australian Line for the year 1879,* which admits of the service being performed by three ships instead of by four as at present. Be so good as to consult with John B. AVatt, Esq., Messrs. John Elder and Co. (to whom we are also sending a copy of the schedule by this mail), and the agents of the Australian and New Zealand Governments in your city, and advise us of their views respecting the schedule which has been forwarded to us by our San Francisco Agents, from whose letter accompanying the same we make the following quotation:— "We think that the schedule we send you will be the best for practical working. The steamers should have all the time possible in Sydney, as they dock there. Our schedule places the arrival here (San Francisco) from Sydney on the Wednesday. This gives us a certainty of no delay of the English mail, as, should it arrive here (San Francisco), as is now the rule, a day in advance of the schedule time, it will leave New York in the Cunard steamer on AVednesday. If it reaches here on the schedule day, it then connects with the steamer of Thursday. Whereas, if it comes here on Monday it will remain in New York two days. You will see that this schedule gives two days less through from Sydney to London, which is an important matter." I have, Ac, D. S. Babcock, Messrs. Charles Clarke and Co., London. President.

Enclosure 2 in No. 47. The Agents-General for New South Wales and New Zealand, to Messrs. C. Clarke and Co. Gentlemen,— 7, AVestminster Chambers, London, S.W., November Ist, 1878. We have the honor to acknowledge the receipt of your letter of 28th October, with enclosures, addressed to us separately, and in reply we have to say that we do not think the Colonial Governments * Vide Enclosures 1 and 2 in No. 43,