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5

F.—6

No. 8

The Agent-Geneeal to the Hon. the Pbemiee. Westminister Chambers, 13, Victoria Street, London, S.W., 2nd September, 1892. Sic, — Renewal of the San Francisco Service. On the 19th ultimo I forwarded you a copy of the letter I received from the Secretary of the General Post Office, in which he regrets that the Lords Commissioners of the Treasury and the Postmaster-General find themselves unable to consent to any "further prolongation of the exceptional arrangement connected with the service in question." On the same day I received your letter of the 14th July, confirming your cable of the 24th June, instructing me to ask for a renewal of the contribution of the Imperial Government for another year or for two years. I have, since the receipt of the letter from the General Post Office of the 15th ultimo (received by me on the 17th), been in communication (by letter) with the General Post Office on the subject, and have also visited the officials at the General Post Office to discuss the matter with them personally. Although the letter of the 15th instant appeared to indicate that the General Post Office would not give way, I incline to think that the representations I have made by letter and in person have not been without effect, and I hope that I shall succeed in getting the Post Office to reconsider their decision. As the matter is pressing, I shall endeavour to obtain a favourable reply to the wishes of the Government at the earliest possible moment, and as soon as I do so will cable you. I have no doubt the matter will be finally concluded before this reaches you, but by next mail I will forward copies of the correspondence which has taken place between me and the Post Office as a record of the proceedings. I have, &c, The Hon. the Premier, Wellington. W. B. Peeceval.

No. 9. The Seceetaby, General Post Office, London, to the Hon. the Postmastee-Geneeal. Sib,— General Post Office, London, 3rd September, 1892. In view of the approaching expiration of the year for which Her Majesty's Government decided to continue the support of the colonial mail-packet service between San Francisco and New Zealand by paying at an exceptional rate for the outward Pacific service, I beg leave to inform you, as you will doubtless already have learned from the New Zealand Government, that it has now been decided to adhere strictly to the Postal Union system in regard to the apportionment of the cost of the mail-service in question. I am directed by the Postmaster-General to state, therefore, that, commencing next November, this department will cease to pay at an exceptional rate for the conveyance of mails for New Zealand and Australia by the colonial packet service from San Francisco; and I am to request that you will be good enough to make arrangements for preparing the accounts with this department, connected with the service in question, on the basis of the Postal Union Convention. I should add that the proportion of the Union rates payable for the Pacific section of the service will be lOfr. per kilogramme of letters and post-cards, and 50c. per kilogramme of other articles. I have, &c, H. BuXTON FOBMAN, The Postmaster-General, Wellington. For the Secretary.

No. 10. The Hon. the Peemiee to the Agent-Geneeal. (Telegram.) Wellington, sth September, 1892. Fe'isco. Imperial Post Office now pays twelve, not eleven shillings.

No. 11. The Agent-Genebal to the Hon. the Peemiee. (Telegram.) London, 29th September, 1892. Impeeial Post Office declines alter decision not pay more than the amount Postal Union rates, Pacific service. Propose, unless instructions are received contrary, ask mediation Colonial Office.

No. 12. The Hon. the Postmastee-Gbnekal, Wellington, to the Hon. the Postmastee-Geneeal, Sydney. (Telegram.) Wellington, 17th September, 1892. Fb'isco Service. —Imperial Post Office declines renew apportionment cost Frisco service except on strictly Postal Union lines. We have therefore to bear full cost transit across America and Atlantic on Homeward mails, while contractors' receipts for conveying London mails from San Francisco to colony will be reduced by about two thousand a year. There is danger of service falling through unless loss made up to contractors, who state that the service is not at present paying, and that they have been continuing in hope of business improving and their obtaining better terms from America. The service is of great benefit to your colony, as, besides quick direct mail communication with United States, you also secure the advantages and expenditure from being the terminal port. Last year your payments amounted to two thousand eight hundred and seventy-nine