I\—3.

16

will be satisfied with the proposed time-table. They must of course decide this, but to our minds it is most objectionable, and we are amazed at the proposal to work the line with three steamers, seeing that the present contract provides for five steamers. The prospect under the proposed table of receiving the mails on Saturday would be very uncertain, and if they did arrive on that day but little advantage would accrue, as Saturday is observed in London as a half-holiday, and Sunday is a dies non. On the other hand, the shortening by a week the time allowed in London for replying to letters by the outgoing mail would be very inconvenient. AYe are only giving you our own opinions, and will be glad if you will without delay communicate them to your principals. AYe have telegraphed to the Governments on the subject, and it remains to be seen if they indorse our views. AYe have, Ac , Julius Vogel. Messrs. Charles Clarke and Co., Windsor Chambers. William Foestee.

No. 48. The Hon. J. T. Fishee to the Agent-Genebal. Sib, — General Post Office, AVellington, 2nd January, 1879. I have the honor to acknowledge receipt of your letter of the 7th November last, together with the several enclosures thereto, relative to a proposal emanating from the President of the Pacific Mail Steamship Company, and brought under your notice by the London representatives of the Company, for the working of the San Francisco Mail Service with three boats instead of four, as at present. The Pacific Company, through its Sydney agents, Messrs. Gilchrist, Watt, and Co., made similar proposals to the Postmaster-General of New South AVales, and also to myself. The proposal, as you have been advised by telegraph, has been unfavourably received, the two Governments being decidedly of opinion that the concession was one which on no account should be made the Contractors. I entirely agree with the joint reply sent by yourself and Mr. Forster to the Contractors' London representatives, which would have prepared the Company for the peremptory refusal subsequently sent by the contracting colonies. I enclose copy of the telegram from the Hon. the Premier above referred to,* which was despatched to you from AVellington on the 19th November last. I have, Ac, The Agent-General for New Zealand, London. J. T. Fishee.

No. 49. The Agent-Genebal to the Hon. the Pbemiee. Sib, — 7, Westminster Chambers, London, S.W., 27th August, 1878. I have the honor to acknowledge the receipt of your telegram respecting postal negotiations, of which I subjoin a copy.f Having communicated with the Agent-General for New South Wales on the subject, we agreed to make a representation to the Secretary of State, in the terms of the letter of which I append a copy. I have, Ac, Julius Vogel, The Hon. the Premier, Wellington. Agent-General.

Enclosure in No. 49. The Agents-General for New Zealand and New South Wales to the Seceetaby of State for the Colonies. Sir, — 7, Westminster Chambers, London, S.W., 23rd August, 1878. Since the interview we had the honor to have with you on Saturday last, we have received further telegrams, instructing us to urge that the present arrangements for dividing postages should be allowed to continue until the expiration of the contracts now in force. The San Francisco Contract expires in 1883. We beg to represent to you that it is very desirable this should be done. The colonies seem to be satisfied with the present arrangement, whilst there appears to be a very strong feeling against the proposed change. We believe that this does not arise so much from its money effect, as from the fact that it is made without any sufficient reason being given to justify it. If there is to be a change, it should be made after a consideration of all the figures, and it should be based on the principle of the mother-country and the colonies mutually bearing the burden of the cost of postal communication —a principle which we understood you, at our late interview, to approve. This has been the principle prevailing for years past. Owing, however, to the cost of the connecting services, the net cost to the colonies is very much more than to the mother-country, and much more than it was before the present arrangement. A fair revision of that arrangement would not be likely to place the Imperial Government in a better position than at present, and, as the Colonial Governments are satisfied with the present arrangement, it is for the interest of the Imperial Government to continue it. We have, Ac, Julius Vogel. The Secretary of State, Colonial Office. William Forster. * Vide No. 42. + Vide No. 21 of E.-4A., 1878.