F.—6

44

The vessels named in this despatch are new, having been in commission less than a year. They were built at Newcastle, England, to the order of Btuddart, Parker, and Co., of Melbourne, to> run in the Australian and New Zealand trade in opposition to the Union Steam Ship Company of New Zealand, one of whose ships, the " Monowai," is employed under contract with the New Zealand Government in the Australian mail-service between San. Francisco, Auckland, and Sydney. These ships have a speed of sixteen knots, have fine passenger accommodation, and cargo capacity, including bunkers, of about 3,900 tons. They have been employed in the intercolonial trade since their appearance in Australian waters; but now it seems that they have been chartered by theCanadian Pacific Company (although not so stated), whose general freight agent went down to Australia for this purpose three months ago. It therefore follows that the long-threatened opposition to the Australian mail-seifvice by American ships from an American port is to be inaugurated by a heavily-subsidised Canadian company at a time when the American line has been almost forced to withdraw from the enterprise through the want of support and encouragement from Congress, the abandonment of the American postal route by Australia, and greatly reduced payments by New Zealand, combined with a steady falling-off in travel in favour of the Eastern route via Suez, and decline in freight through the operation of the McKinley tariff on the one hand and the retaliatory tariff of New South Wales on the other. It only needs an opposition of the character indicated in the foregoing despatch to cause the abandonment of the American-Australian service on the termination of the current contract with New Zealand next October, and such abandonment means surrender of American trade with Australia to the Dominion of Canada, whose subsidised steamships can afford to run upon conditions that would be ruinous to American ships which receive no subsidy from the Post Office. Department. I shall not repeat in this place the arguments used by me in support of a liberal policy towards this service by the American Government in my letter of 9th December, 1892, but I desire to respectfully invite attention to them in the hope that the Hon. Postmaster-General may give the matter serious consideration. It is very clear to me that this is a question of national importance, involving special conditions which should be specially dealt with. To apply a general rule of policy to the Australian postal service, unless such rule should provide for the maintenance of the American service, and, therefore, the control of the American trade with Australia in American hands, would be to extinguish it in time. It has only been maintained in efficiency in the past through the liberality of New Zealand, and it is becoming, or, indeed, has already become, a mere provisional or temporary service, because that Government objects to bear the burden of cost while deriving the smallest measure of advantage. In this relation I may add that the wish and hope of New Zealand is that the United States would take such action in the premises as would render the service not only permanent but beyond the risk of failure through Canadian or other opposition, to the end that commercial relations with America might be strengthened and increased. Might I request you to submit this letter, together with my communication of 9th December,. 1892, to the Hon. Postmaster-General for his consideration. I have, &c, Bobt. J. Cbeighton, Hon. N. M. Brooks, Agent, New Zealand Government. Superintendent of Foreign Mails, Washington, D.C.

Enclosure 2 in No. 77. Mr. Cebighton to the Supebintendent of Fobeign Mails, Washington. Sic,— San Francisco, 18th April, 1893. Supplementing my letter of the Bth instant, I have the honour to inform you that by the last mail I received advices from New Zealand, of date 23rd March [not printed], informing me that at the late Intercolonial Postal Conference held at Brisbane, Queensland, at which representatives from New Zealand were present, a resolution was adopted unanimously expressing the astonishment of the Conference that the United States Government had continuously refused to subsidise the San Francisco service adequately; also that a further resolution had been adopted authorising negotiations to be opened for a Canadian mail-service. I deem it my duty to bring these facts to your notice, as they have a very direct bearing upon the continuance of the American mail and steamer line to Australia. I have already written of the projected Canadian line, and unless some action be speedily taken to avert the danger, I am prepared to see the San Francisco service abandoned, and the United States dependent upon. Canada for its mail-transportation to the Antipodes. I have, &c, Eobebt J. Cbeighton, Hon. N. M. Brooks, Agent, New Zealand Government. Superintendent of Foreign Mails, Washington, D.C.