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that your Government and people may hereafter enjoy all the advantages accruing from an American postal subsidy as fully as the United States hitherto enjoyed the benefits resulting from your enterprise and public spirit in maintaining the San Francisco postal route. If your Government is willing to contract for a renewal of the four-weekly service on the conditions herein specified, you will please cable, " Spreckels, San Francisco, agree." If not, cable " disagree," and such qualifying words as may be necessary to define your position. It is important that I should know your determination as soon as possible, as under the existing contract the service will terminate 18th October at this end. Should you reply be in the affirmative, as I trust it will be, it would be necessary to issue anew time-table, and notify our agents that the service would be continued. You are at liberty to make what use of this letter you please. If Congress had passed the Subsidy Bill our policy in this matter would have been the same—we should have given New Zealand the full advantage of any subsidy received by us for mail-services from the United States Government. Awaiting your reply, and anticipating in advance that your Government will appreciate the spirit in which this offer is made, as well as the commercial and postal advantages which would result therefrom to New Zealand. I remain, &c, John D. Spreckels, President, Oceanic S.S. Company. W. Gray, Esq., Secretary, Post Office, Wellington.

No. 18. The Hon. E. Mitchelson to Mr. Spreckels, San Francisco. (Telegram.) Wellington, 19th September, 1890. Disagree. House decided prior receipt letter.

No. 19. Mr. Gray to Mr. Creighton, San Francisco. Sir,— General Post Office, Wellington, 23rd September, 1890. I have the honour to acknowledge the receipt of your letter of the 23rd ultimo, enclosing copy cf your communication to the Acting-Superintendent of Foreign Mails, Washington, which embodies your telegraphic correspondence with the Hon. John Wanamaker, Postmaster-General of the United States, in reference to the renewal of the San Francisco mail-service. I have, &c, E. J. Creighton, Esq., W. Gray, Secretary. Besident Agent for New Zealand, San Francisco.

No. 20. The Hon. the Postmaster-General to the Agent-General, London. Sir,— General Post Office, Wellington, 24th September, 1890. I have the honour to acknowledge the receipt of your letter of the 9th ultimo, informing me that you were unable to obtain any definite information from the Imperial Treasury in reply to my questions, cabled on the 21st June last, as to the policy of the Government in respect of the San Francisco and Direct mail-services; but that the Postmaster-General had brought the matter under the consideration of the Treasury. My communication of the 18th instant will have informed you of the proposals agreed to by Parliament in regard to the reduction of the ocean letter-postage, and the renewal of the mail steam-services. The delay in the reply of the Imperial Treasury, after all, proved fortunate, as it happened. I have, &c, W T. Gray, The Agent-General for New Zealand, London. For the Postmaster-General.

No. 21. Mr. Gray to Mr. Creighton, San Francisco. Sir,— General Post Office, Wellington, 26th September, 1890. I have the honour to forward you the enclosed copies of my cablegrams to you of the 31st ultimo (vide No. 8, F.-6a, 1890) and Bth instant, asking if the United States Government would guarantee the free transit of the Homeward mails from San Francisco to New York should this colony renew the service; and to express the hope that the United States Government will see its way to agree to the request. I have, &c, W. Gray, E. J. Creighton, Esq., For the Postmaster-General, Besident Agent for New Zealand, San Francisco,