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No. 9. Mr. Geay to the Seceetaey, General Post Office, Sydney. Srß,—* General Post Office, Wellington, 4th February, 1890. I have to acknowledge the receipt of your letter of the 6th ultimo, in which you inform me that your department had agreed to recognise the claim of the contractors in respect to the division of the payment made by the United States to them for the San Francisco mail-service. I beg to state that the Hon. the Postmaster-General has received the decision with pleasure. I have, &c, The Secretary, General Post Office, Sydney. W. Geay, Secretary.

No. 10. Mr. D. Mills to the Seceetaey, General Post Office, Wellington. Union Steamship Company of New Zealand (Limited), Sib,—- Dunedin, 10th February, 1890. I have the honour to acknowledge receipt of your favour of the 20th ultimo, notifying that the Postmaster-General of New South Wales had agreed to recognise the claim of the contractors in reference to the division of the payment made by the United States Post Office for the use of the San Francisco mail-service, and that a statement will be prepared showing how the matter stands. I have, &c, D. Mills The Secretary, General Post Office, Wellington. (For Managing Director).

No. 11. Mr. Geay to the Managing Dieectoe, Union Steamship Company, Dunedin. Sib,— General Post Office, Wellington, 18th March, 1890. Eeferring to my letter of the 20th January last, I have now the honour to forward a statement showing the overpayment by this office to the San Francisco mail-service contractors, in consequence of our share (one-third of $26,000) of the United States contribution of $46,000 a year not having been taken credit for, for the twelvemonthly period ended the 4th November last. The balance against the contractors is shown to be £1,466 Bs. Bd., which it is proposed to recover by withholding payment of a sum of £595 for bonus for the period from the 10th July to the 23rd November last, and two sums of £432 13s. lOd. each for the " Alameda's" voyage from Auckland to San Francisco between the 24th February and the 15th instant, and the " Mariposa's', from San Francisco to Auckland between the Bth ultimo and the Ist instant respectively —partieu lars of which are enclosed. This will leave a balance of £6 Is. to be deducted from the nex" subsidy-payment. I shall be glad to have your verification as early as may be convenient to you. I have, &c, The Managing Director, W. Geay, Secretary. Union Steamship Company of New Zealand (Limited), Dunedin.

Enclosure in No. 11. Statement showing the Overpayment by New Zealand to the Contractors for the San Francisco Mail-service, in regard to the United States Annual Contribution of $46,000, from the 18th November, 1888, to the 4th November, 1889:—

Subsidy Paid Contractors. Amount. Subsidy which should have been paid after deducting New Zealand's , . Share of the United States Contri- j Amount. bution of $46,000. . I lubsidy of £24,666 13s. 4d. per : £ a. d. annum, less a sum of £266 13s. id., being one-third of $4,000 out of the annual contribution of $20,000 made the contractors by the United States, the former amount being the estimated ex- j cess of the yearly payments to which the contractors were entitled for conveyance of United I States mails ... ' ...^ ... 24,400 0 0 Subsidy of £24,666 13s. id., less ' £ s. £1,733 2s., being one-third of j $26,000 a year agreed by the contractors to be shared out of the said contribution of $46,000 under clause 10 of | the contract ... ...22,983 11 Overpayment by New Zealand 1,466 8 d. 4 8 24,400 0 0 I 24,400 0 0 24,400 0 0 |24,400 0 0 General Post Office, Wellington, 18th March, 1890. W. Gray, Secretary.