F.—4

14

Enclosure 1 in No. 11. Sir Julius Vogel to the Secretary, General Post Office, London. Sir, — 7, Westminster Chambers, London, S.W., 17th December, 1880. In pursuance of our conversation on the 13th iustant, I have now the honor to submit to you, in writing, the clause embodied in the United States Postal Act last session. It is as follows: " Provided that the Postmaster-General be authorized to remit in favour of the Colonies of New Zealand and New South Wales so much of the cost of overland transportation of the Australian closed mails as he may deem just." You will observe that it provides that the remission shall be made in favour of the colonies, so that, as I represented to you, and I believe you agreed, there is no question of anything coming to the English Post Office. Besides, the arrangement now subsisting between the English Post Office and the colonies takes into account the cost of transit. I have, as agreed at our interview, merely to ask you to formally state that you have no objection to the colonies arranging for a refund from the United States of so much as the Postmaster-General under the clause in question is willing to pay It would be as well to place on record that which I had the honor to state to you personally viz., that the ground on which the United States propose to make any payment is that the colonies subsidize a line of steamers between California and New Zealand and Australia, from which the United States receive both postal and commercial benefits. I have also to ask you to be kind enough to state approximately the amount paid to the United States on account of the carriage of the colonial mails since the commencement of the present contract on 15th November, 1875, and also to say about how much is being paid now I have, &c, The Secretary, General Post Office, Julius Vogel, St. Martin's-le-Grand. Agent-General for New Zealand.

Enclosure 2 in No. 11. Mr. Turner to Sir Julius Vogel. Sir, — General Post Office, London, 14th January, 1881. I have laid before the Postmaster-General your letter of the 17th ultimo, in which you state that, by the United States Postal Act of last session, the Postmaster-General has been authorized to remit, in favour of the Colonies of New Zealand and New South Wales, so much of the cost of the overland transportation of the Australian closed mails as he may deem just. You explain that this concession is granted in favour of the colonies in consideration of the benefits conferred upon the United States, both in a postal point of view and commercially, by the maintenance of the colonial line of mail packets between San Francisco and Australia. To enable the two colonies to obtain the promised advantage, you ask to be furnished with a statement of the sum paid by this department to the United States for the conveyance of the Australian mails between New York and San Francisco since the commencement of the present contract on the 15th November, 1875, and also to say how much is being paid now On this point the Postmaster-General is happy to furnish the information desired. The amount already paid to the 30th June, 1880, was £71,000, and it is estimated that about £9,000 will be due for the transit during the remainder of last year ; making a total of, say, £80,000. But, while furnishing you with these figures, the Postmaster-General desire 3 me to say that he does not feel at liberty to express any opinion upon the subject of an arrangement between the colonies and the United States for a payment hj the latter in respect of the cost of overland transportation of the Australian closed mails. I have, &c, Sir Julius Vogel, K.C.M.G. Algernon Turner.

Enclosure 3 in No. 11 Telegram through Reuters Agency, which appeared in the Times of Thursday, 27th January, 1881. Washington, 26th January The House of Representatives has passed a Postal Appropriation Bill, and has voted a resolution to pay New Zealand and New South Wales half of the cost of the overland transport of the British closed mails.

Enclosure 4 in No. 11. The Agents-General, New South Wales and New Zealand, to Mr. Creighton. (Telegram.) 28th January, 1881. Press cable states payment to colonies authorized of half transit expenses. Presume will apply to whole present service. English Government have paid during present service, to end June last, seventyone thousand pounds, and are paying now about rate of eighteen thousand pounds a year. K. J Creighton, 500, Montgomery Street, San Francisco, California.

No. 12. Sir Jxrutrs Vogel to the Hon. the Postmaster-General. Sir, — 7, Westminster Chambers, London, S.W., 4th February, 1881. Referring to my letter of 28th ultimo, in which I forwarded to you copy of correspondence respecting the remission by the United States Government of a portion of the cost of transportation