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earlier departure from San Francisco was sanctioned. I beg to enclose copy of the written reply sent Messrs. Williams, Dimond, and Co., from this office ; and I am to express the hope that your Company may find it possible to give immediate effect to the proposal, now that it has been accepted by the contracting colonies. By the last mail from Sydney a letter was received from the New South Wales Post Office enclosing copy of communication from Messrs. Gilchrist, Watt, and Co., covering copy of your vicepresident's telegram to your San Francisco agents, requesting permission to send the " City of Pekin " or the " City of Tokio " for one voyage to the colonies, for the purpose of being surveyed, and, if necessary, accepted as a mail-boat in place of either the " City of Sydney "or " City of New York." I need scarcely inform you that the required permission was at once granted ; and the approval has no doubt been telegraphed you by your Sydney agents. Might I suggest that valuable time would be saved were you to communicate with your agents at Auckland as well as at Sydney on any matters which have to be submitted for the immediate decision of the Postmasters-General? This is obvious, as by communicating with your Auckland agents it would bo possible for a reply by cable to reach New York before the mail-steamer arrived in Sydney. I have, &c, John Eiley, Esq., President, Pacific Mail Steamship Company, W. Gkay, Pier, Foot of Canal Street, N.R., New York. Secretary.

No. 25. Messrs. Williams, Dimond, and Co., to the Seoeetaet, General Post Office, Wellington. Sib, — San Francisco, January 16th, 1880. It being our great desire to render our performance of the mail service between San Francisco and the Colonies of New Zealand and Australia as satisfactory as possible to both Governments, and to offer the greatest facilities, speed, and comfort to our patrons, we have deemed it advisable to submit the under-mentioned points to the postal authorities of both colonies, with our offer, if our suggestions are favourably received, to carry out the proposed changes. The object which we desire to accomplish, and which, if sanctioned by the Postal Departments, we regard as entirely practicable, is to shorten the through time about three days, or certainly two or two and one-half days, between London and the colonial ports. Under our present schedule, which has been approved by your department, the mail-steamers sail from this port on every fourth Monday. The last of the English through mails has frequently arrived in San Francisco on Saturday night. By a recent change in the railroad route between this city and Sacramento City, the distance between those two points has been so much shortened as to change the hour of arrival in San Francisco to noon, instead of 6.30 p.m. as heretofore. The plan by which we propose to reduce the through time as above stated is as follows : 1. To advertise at all points, so as to give due notice to travellers by our route, and thus obviate all possibility of subjecting individuals to disappointment, that the mail-steamers will sail from San Francisco on Saturday, or as soon as the English through mails reach this city. 2. To order our commanders to exert themselves diligently on the voyage, and, while at no time pressing their steamers beyond the point of strictest prudence, to endeavour, by availing themselves of every favouring circumstance, such as calm weather, smooth seas, and propitious winds, to gain one full day between San Francisco and the colonial ports. In our opinion, the feasibility of this plan, and the saving thereby of the time above indicated, is beyond all doubt. All that we ask from the Governments whose mail service it is our aim to improve is—(1) to consent to the change in the da 3's of departure from San Francisco; (2) to allow us the same rate per hour for the hours saved on contract time as has been heretofore paid to our Company. We would further request, if our proposition receives your approbation, that you telegraph the postal authorities in London, so far as may be in their power to ship the colonial mails by the swiftest steamers employed on the New York line, giving preference to such as arrive at New York on Saturday mornings. This will give us an additional guarantee that said mails will arrive in San Francisco at noon on Saturdays, and enable us to get them on board and sail the steamers two days in advance of our present schedule. If the conditions herein indicated meet your acquiescence, you will please cable to us the word "Sanctioned;" on reception of which we will proceed without further delay to execute our plans with the greatest energy, and do everything in our power to cause them to result beneficially and satisfactorily to your department and to the advancement of the interests of the people of the colonies. We have, &c, W. Gray, Esq., Secretary, General Post Office, Williams, Dimond, and Co., Wellington, New Zealand. General Agents.

No. 26. The Hon. Mr. Hall to the Hon. the Postmasteb- General, Sydney. (Telegram.) Wellington, February 14th, 1880. Hate received important proposal from Pacific Mail Company to shorten the journey between London and colonies by three days. Company propose to depart Frisco on Saturday instead of Monday, and gain a full day on the voyage to Auckland and Sydney. They wish our consent to the early departure from Frisco; and the pecuniary consideration stipulated for is, in the words of the contractors themselves, "to allow us the same rate per hour for the hours saved on contract time as has been heretofore paid to our Company." I presume the extra payment required is only on the saving to be . 3—F. 2.