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Enclosure 2 in No. 30. The Agent-General to the Secretary, General Post Office, London. Sir, — Westminster Chambers, 7th October, 1889. I have to acknowledge the receipt of your letter of the sth instant, informing me that the Lords Commissioners of Her Majesty's Treasury consent to extend the existing arrangements for the conveyance of the San Francisco mails for another year, but stipulate that if the apportionment of postage between the Imperial and Colonial Post Offices should eventually be readjusted on terms more favourable to this country, the new apportionment shall date back to November, 1889. I have to request you will do me the favour of conveying to their Lordships the thanks of my Government for consenting to extend the existing arrangements for another year. With regard, however, to the stipulation by which that consent is accompanied, there are practical difficulties, which I cannot but think the Treasury has overlooked. It may be as well to note a slight misapprehension in your letter. The question is not exactly whether the Colonial Governments should be enabled to substitute some other mail-route for the present one, but whether there is to be a permanent Pacific mail-service at all, and, if so, by which route, San Francisco or Vancouver. Now, whichever way this is settled, the questions relating to apportionment of postage must be entirely changed from what they are now. Let us see how the decision for either route would affect the Treasury stipulation. If the San Francisco route is retained, it will only be on condition of the United States contributing a fair part of the subsidy. But on that hypothesis the Washington Post Office may claim to come in to a new apportionment of postage, and it would obviously not be right to date back whatever apportionment is then made to the entirely different circumstances of 1889. If, on the contrary, the Vancouver line is chosen, then a new apportionment will have to be made on an essentially different basis, and could not be made to date back at all to 1889. Under these circumstances, perhaps the Treasury may think it would be best not to complicate matters at this time by a stipulation which might be incapable of application, but to leave the question of apportionment to be dealt with as part of the general subject hereafter. I am, &c, The Secretary, General Post Office, St. Martin's le Grand. F. D. Bell.

No. 40. Mr. Gray to the Secretary, General Post Office, Sydney. Sir, — General Post Office, Wellington, 6th December, 1889. I have the honour to enclose herewith for the information of your department a copy of a letter of the 17th October last from the Agent-General for New Zealand, together with second copies of the letters therein mentioned : from the Imperial Post Office to Sir Francis Bell, of the sth October ; and from the Agent-General in reply, of the 7th idem —in reference to the agreement of the Imperial Treasury to extend the existing arrangements for the conveyance of the San Francisco mails between London and San Francisco for another year, to November, 1890, and to the stipulation that if, as the result of inquiry, the apportionment of postage is eventually readjusted on terms more favourable to Great Britain, the new apportionment shall date from the expiry of the arrangement existing up to November, 1889. I have, &c, The Secretary, General Post Office, Sydney. W. Gray, Secretary.

No. 41. Mr. E. J. Cbeighton to the Secretary, General Post Office, Washington. Sir, — San Francisco, California, 18th October, 1889. I have the honour to inform you that I wrote officially to the Hon. N. M. Brookes, Superintendent of Foreign Mails, on the 26th August and the 24th September, bringing before his attention the inconvenience and risk attending the detention of the outgoing mail-steamers for Auckland and Sydney till after midnight on the date of departure, and suggesting certain changes which, in my judgment, would accelerate the delivery of the mail at the San Francisco Post-office, and the consequent earlier sailing of the steamers. Acting upon the first communication, Mr. Brookes instructed the proper officer at San Francisco to represent the facts to the railroad company, and induce them to accelerate the delivery of the mail on arrival at the Oakland Mole. The Bailroad Superintendent promised compliance with the requirements of the Post Office Department; but on the month following a similar detention took place. I thereupon wrote my letter of the 24th September, reviewing the facts, and suggesting a possible earlier delivery of the mail through a change of the overland time-schedule, and precautions against holding only the British closed mail at any point on the route where a transfer is needed to make connection. I also pointed out that unnecessary risk was entailed upon the steamship company by compelling a night departure, which brought the mail-boat to Honolulu, Tutuila, and Auckland at night; also unless extra coal were consumed for increased speed. The result has been a conference at San Francisco, at the request of the Postmaster-General, between the General Superintendent of the Union and Southern Pacific Eailroads, and Captain White, General Superintendent of Eailway mail-service, Chicago, and Mr. Wilder, Superintendent of the same postal branch at this city.