P.—6.

No. 2. The Acting-Supebintendent, Foreign Mails, Washington, to the Hon. the Postmastek-Geneeal, * Wellington. Sib,— Washington, D.C, Ist June, 1889. I have the honour, by direction of the Postmaster-General, to acknowledge the receipt of your communication of the sth April last [vide No. 76, F.-4, 1889], in which you state that, from this department's letter of the 13th February last, it is not clear whether this Administration maintains that the contractors performing the mail-service between San Francisco and Auckland were fully compensated for said service by the payment of $16,000 yearly for the carriage of the United States mails for Australasia up to November last. With reference to previous correspondence on this subject, I am directed to inform you that the sum of $20,000, which, by Postmaster-General Vilas' order dated Bth May, 1886, was authorised to be paid annually to the Oceanic Steamship Company for service rendered in conveying the mails in question after 21st November, 1885, was estimated to be $4,000 in excess of the amount which would be paid for the same service at the rates previously paid for similar service, the basis for said estimate being the operations of the fiscal year ended 30th June, 1885 ; and the allowance of the $4,000 in excess being understood to be in accordance with your telegram of the 23rd September, 1885. The actual net weights of the mails in question conveyed since 21st November, 1885, and during the period for which the sum of $20,000 has been paid annually, show, however, that, by reason of the increase in the weights of the mails conveyed during that period, the Oceanic Steamship Company would have received not less than $20,000 per annum if settlement had been made with that company upon the same basis as obtained prior to the issue of the order of Bth May, 1886. I am, &c, S. M. Beooks, Acting-Superintendent, Foreign Mails. The Hon. the Postmaster-General, Wellington, New Zealand.

No. 3. Mr. Geay to the Secbetaby, General Post Office, Sydney. Slß,— General Post Office, Wellington, 17th October, 1889. With further reference to the correspondence relative to the amount claimed by the San Francisco mail-service contractors out of the payments by the United States Post Office for the conveyance of its mails by the contract packets, and more particularly to your letter of the 30th April last, I am now directed to inform you that, as there was so decided a difference of opinion between our offices as to the position of the contractors, the question of the rights of the contracting colonies and of the contractors in the matter has been referred to the Crown Eaw Officers for advice. The Solicitor-General is of opinion that the view taken by this office as to the division of the annual payment of $46,000 now being made by the United States is the correct one— namely, that the contractors are entitled to claim $20,000 for sea-postage. The Solicitor-General further states that it seems clear that the meaning of clause 10 of the contract is that the contractors should receive the full equivalent of the United States sea-postages, any excess to be shared between all the parties. As it is now apparent that the amount of sea-postage for the carriage of United States mail-matter amounts to at least $20,000 yearly, it is only equitable that this sum should go to the contractors, and the balance be shared as proposed by them. The special contribution from the United States obtained by Sir Julius Vogel in 1885 was for a period of three years, which expired in October last. The present payment of $46,000 is for a subsequent term, made under different conditions, and with the knowledge of the large increase of United States mail-matter. It was secured mainly through the intervention of the Oceanic Steamship Company (agents for the contractors) ; and the warrant of the United States Post Office specifies that the payment is to be made to that company. These facts strengthen the position taken up by the contractors ; and the Postmaster-General trusts that on reconsidering the matter your office will be disposed to agree with this department by recognising the claim of the contractors to retain $20,000 of the $46,000, and to share the balance between the contracting colonies and themselves. A copy of a further letter from the United States Post Office, as to what the contractors may claim for sea-postages, is forwarded for your information. I have, &c, The Secretary, General Post Office, Sydney. W. Gkay, Secretary.

No. 4. Mr. Gkay to the Superintendent of Fobeign Mails, Washington. Sim, — General Post Office, Wellington, 2nd November, 1889. I have the honour, by direction of the Postmaster-General, to acknowledge the receipt of your letter of the Ist June la^t, replying to mine of the sth April, in further reference to the payment of $20,000 per annum madehy your department towards the cost of the San Francisco mail-service for the period from November, 1885, to November, 1888. I have, &c, The Superintendent, Office of Foreign Mails, W. Giuy, Secretary. Post Office Department, Washington, D.C".

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