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that ,840,000, compared with what is paid by the colonies, and the advantage of the service to American commerce, are a wholly inadequate contribution. You will, of course, take special care that, if payment is to be made at all, it shall be of substantial amount. In view of the possibility of New South Wales eventually declining to renew, except on terms neither acceptable to the contractors nor this colony, the Government wish you to inquire what aid New Zealand might expect from the United States in the event of this colony undertaking to continue the service on her own responsibility, with Auckland as thcterminus. You have mentioned the possibility of the overland journey between San Francisco and New York being considerably shortened ; and, I understand, there is reason to believe the time will ere long be reduced from seven to five days. In the event of a renewal of the service being arranged, a reduction of time between London and New Zealand would be an essential feature of the contract, so as to enable the service to compete successfully with the eastern mail-lines. You will therefore recognize the importance of urging on the railway authorities and others the need for reducing the time between San Francisco and New York to a minimum. You are already in possession of the views of the Governmant as to the advantages the colony would derive were the prohibitive duties now levied on New Zealand wools, introduced into the United States, removed; and the Government is satisfied you will deal with the question in a manner best calculated to benefit the colony. It is suggested that you confer with the directors of the Pacific Mail Company, and, as far as possible, co-operate with them in any action they make take (and of which you approve), either in the matter of procuring a subsidy to the San Francisco service, or in the direction of obtaining a reduction of the duty on our wools, ****** I have, &c, Thomas Dick, R. J. Creighton, Esq., San Erancisco. Postmaster-General,

No. 10. Mr. Gamble to Mr. Gray. Auckland, 6th February, 1883. Will you kindly advise Premier and Postmaster-General that my company offers to renew mail service with the Colonies of New South Wales and New Zealand for the sum of fifty-two thousand five hundred pounds, proportions of this amount to be arranged by the colonies? Only change from present service to be the running of three instead of four boats, and reduction of twenty hours to San Francisco. New South Wales has been informed of this offer. Thos. T. Gamble, W. Gray, Esq., Wellington. Agent, Pacific Mail Steamship Company.

No. 11. The Hon. Mr. Stuart to the Hon. the Colonial Secretary, Wellington. Sydney, 10th February, 1883. This Government has under consideration continuance American postal service. Agents now offer, if fourth boat dispensed with, to give twenty hours 5 increased speed for fifty-two thousand five hundred. Are you prepared pay balance if we pay twenty thousand? The public feeling strongly divided, as its postal value for English letters much destroyed by other unsubsidized routes. Your reply necessary before we can decide what to submit to Parliament. Cannot possibly submit more. Doubtful if that successful. Would not propose longer than three years. Great dissatisfaction exists here that American Government stands aloof. Alex. Stuart, The Colonial Secretary, Wellington, New Zealand. Colonial Secretary.

No. 12. The Hon. Mr. Dick to the Hon. Mr. Stuart. Wellington, 16th February, 1883. Fr'isco Service : You do not seem to sufficiently appreciate advantages of having the terminus, nor to recognize the extra cost six thousand pounds to us for collecting and distributing mails, nor the probability that an accelerated service will increase number of your letters by IVisco. If you absolutely decline to pay more than twenty thousand, we will agree to thirty-two thousand five hundred for three years, but would prefer that renewal should only be for two years. Thomas Dick, The Hon. Alex. Stuart, Sydney Colonial Secretary.