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No. 10. The Chief Secretary, Victoria, to the Hon. the Colonial Secretary, New Zealand. (Telegram.) Melbourne, 6th January, 1880. Southampton and Suez contract being abandoned by the Imperial Government, this Government propose to send all mails after January via Brindisi, and charge present Southampton rates on letters, packets, and newspapers. Division of postage between Imperial and colonial Governments to be matter of future arrangements ; for the present, other colonies to account to Victoria same rates as now. Your concurrence invited in transmission of mails by fortnightly service via Brindisi. In accordance with foregoing, favour of early reply requested. Graham Berry, The Colonial Secretary, New Zealand. X, Chief Secretary.

No. 11. The Hon. the Colonial Secretary to the Chief Secretary, Melbourne. (Telegram.) Wellington, 6th January, 1880. Thanks for message about Suez mail. Will consider, and reply immediately. The Hon. Graham Berry, Chief Secretary, Colonial Secretary. Melbourne.

No. 12. Memorandum by Mr. Gray to the Hon. the Postmaster-General. I think this is a matter rather of Imperial than colonial concern, inasmuch as the Imperial Post Office controls the mail service between London and Galle, and makes all arrangements for the payment for the transit of mails between Brindisi and Calais. As the Imperial Government, on deciding to abandon the Southampton route, made an alternative proposal for the carriage of the whole of the mails by way of Brindisi and Calais, which has been accepted by this colony, it would be scarcely competent at present for the department to accept the proposal of the Chief Secretary of Victoria. The sixpenny rate would, no doubt, prove attractive; but as there would be no margin for defraying the overland transit charges, the colonies would suffer considerable loss by only charging the Southampton rates on correspondence sent via Brindisi. This loss would not be made good by the London office; and unless Victoria undertakes to defray the whole of the charge connected with the transit of mails between Calais and Brindisi over and above that agreed to be paid by London, I fear but few of the colonies will consent to the proposal. It is not the policy of this colony to make the Brindisi service over-attractive, and already it has been decided not to take full advantage of the fortnightly service. W. Gray, General Post Office, 12th January, 1880. Secretary.

No. 13. The Hon. the Colonial Secretary to the Hon. the Chief Secretary, Melbourne. (Telegram.) Wellington, 15th January, 1880. Proposed alteration re Suez mails. At invitation Imperial Government, this colony, in October last, approved of proposal to abandon Southampton route and forward its Suez mails via Brindisi. The rates of postage proposed by Imperial Post Office were higher than the present Southampton rates, being on the basis of sevenpeuce per half-ounce letter, and other rates in proportion. There was thus a margin for defraying cost of conveying mails between Brindisi and Calais. This colony also stipulated that, should the proposed margin be insufficient to cover foregoing charges, any deficiency to be made good by Imperial Post Office. Your proposal to levy present Southampton rates only means, in the case of New Zealand, we should have to make increased payments for the carriage of our mails between Brindisi and Calais, not covered by postage receipts, which would be a serious loss. We pay large sum for maintaining Frisco service, and are not prepared to further increase colony's loss in connection with ocean services. After careful consideration I regret, therefore, I cannot agree to proposal made in your telegram of 6th instant. John Hall, The Hon. the Chief Secretary, Melbourne. Colonial Secretary.