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No. 11 The Secretary, General Post Office, to the -Managing Director, Union Steam Ship Company. Sib,— General Post Office, Wellington, 20th November 1893. I have the honour to acknowledge the receipt of your letter of the 26th ultimo, undertaking to renew the interprovincial service for the delivery of the mails inwards and outwards in connection with the San Francisco service, and stating reasons for not reducing the amount below that at present contracted for. In reply, I am directed by the Hon. the Postmaster-General to inform you that he accepts your offer to continue to perform the service for twelve months, from the expiration of the existing contract term, at the present subsidy of £3,000 a year I have, &c, The Managing Director W Gray Secretary Union Steam Ship Company of New Zealand (Limited), Dunedin.

No 12. The Managing Director, Onion Steam Ship Company, to the Secretary, General Post Office. Union Steam Ship Company of New Zealand (Limited) Dunedin, Sir,— 4th December 1893. I have the honour to acknowledge receipt of your favour of the 20th ultimo, advising that the Hon. the Postmaster-General accepts our offer to continue the present interprovincial service for delivery of the inward and outward San Francisco mails for ohe present subsidy of £3,000 per annum. Thanking you for your courteous advice, I have, &c, T W Whitson, The Secretary, General Post Office, Wellington. For Managing Director

No. 13. The Secretary, General Post Office, to the Managing Director, Union Steam Ship Company Sir,— General Post Office, Wellington, 27th October, 1893. I have the honour to acknowledge the receipt of your telegram of the 11th instant, announcing your willingness to carry on the San Francisco mail-service for another year on the existing terms. I regret to say, in reply to your inquiry that there is no hope of the Imperial Government increasing its payment. As requested, I send herewith a comparative statement, showing the cost of the San Francisco service under the contract of 1891-92, and that of 1892-93. I have, &c, The Managing Director, W Gray, Secretary Union Steam Ship Company of New Zealand (Limited), Dunedin.

No. 14. The Agent-General to the Hon. the Premier. Westminster Chambers, 13, Victoria Street, London, S. # W , Sib,— 4th October, 1893. Referring to the telegrams which have passed between us on the subject of the renewal of the San Francisco mail-service for another year, copies of which are appended [see Nos. 3 and 4], I beg to forward copies of my letter to the Secretary of the General Post Office on the subject, and the reply thereto. With regard to the Vancouver service there is nothing very definite to report. Mr Huddart is now in London, and when the members of the Ministry return to town for the autumn session, opening early in November, he intends to reopen his application for an Imperial subsidy He is sanguine of success, but I very much doubt whether his anticipations will be realised, as the postal authorities are, as you know, averse to adopt any policy which will divert the carriage of letters from the existing route via Suez. When a deputation of the Agents-General, headed by Sir Charles Tupper, the High Commissioner for Canada, some time ago waited on the Secretary of State for the Colonies to urge the granting of an Imperial subsidy to the Vancouver service, I thought it more prudent not to take any part, as I was unaware what the views of the Government were regarding the service, and, as the service did not then appear likely to directly benefit New Zealand, I decided to keep myself free from openly urging the Imperial Government to support the service. Although, as matters now stand, there is no immediate probability of the Vancouver service being made available for New Zealand as a mail-service, Mr Huddart expresses his hope and intention of eventually making arrangements which will enable the service to be used by the colony as an alternate service with the San Francisco service. He is not prepared at present to make any definite proposal, and states that any arrangement ■with this object must be approved by Canada. The Canadian Minister, the Hon. Mr Bowell, who is now on his way to Sydney to promote traderplations with Australia, is stated to be anxious to open up a trade with New Zealand, and, as time does not permit of his visiting New Zealand, I suggested in my cablegram that a member of the Ministry should proceed to Sydney to confer with him on the whole subject.