19

F.—6

The Postmaster-General is pleased to learn that your company sees its way to agree to a service of nineteen days, and notes your reservation in the direction of reopening the question at the expiration of the twelve months for which the contract is to be extended. As regards late arrivals, the Minister regrets that he is unable to vary the terms of the penalty clause of the contract made in August, 1895. I am to say, in reference to clause 3 of the draft contract, that the Eight Hon. Mr. Seddon desires that the passenger and freight rates between Auckland and San Francisco, and vice versd, shall not exceed the rates between Sydney and San Francisco, and vice versd, and he would be glad to learn what addition, if any, is proposed to be made for freight and passages to and from New Zealand ports other than Auckland, in order that he may be able to compare them with the rates proposed to be charged to and from Sydney* lam to add that a similar proviso will be made in the Vancouver contract. I have, &c, The Managing Director, W. Geay, Secretary. Union Steam Ship Company of New Zealand (Limited), Dunedin.

No. 80. The Hon. the Pbemiee to the Agent-Geneeal. Premier's Office, Wellington, 11th February, 1898. Sib, — Pacific Mail-services. 1 have the honour to acknowledge the receipt of your letter of the 20th December last, on the subject of the time-tables of the Pacific mail-services and a proposed understanding with the Imperial Post Office that all correspondence for New Zealand should", unless specially superscribed for despatch by some other route, be sent vid San Francisco and Vancouver. In connection with framing the time-table, I may state that the main factor to be considered was the necessity of allowing the Vancouver steamers a maximum time in Sydney for overhaul. This, together with the importance of securing the advantages of the transmission of the London mails by the swiftest of the Atlantis steamers, will to a great extent explain why a longer interval in London between the arrival and departure of the mails could not be arranged. It is,* however, considered that, if the two services are performed with regularity, the time-table should prove a fairly satisfactory one. The successful results of your appeal to the London Post Office to forward all New Zealand mail-matter not superscribed for other routes by the Pacific services are referred to in another letter by this mail [not printed]. I have, &c, W. C. Walkeb, For the Premier. The Hon. W. P. Eeeves, Agent-General for New Zealand, London.

No. 81. The Hon. the Pbemiee to the Agent-Genebal. Sib,— Premier's Office, Wellington, 11th February, 1898. I have the honour to acknowledge receipt of your letter of the 31st December, forwarding copy of one to the Secretary, General Post Office, London, in connection with the San Francisco and Vancouver mail-services. I have, &c, W. C. Walkee, For the Premier. The Hon. W. P. Eeeves, Agent-General for New Zealand, London.

No. 82. Wabeant. His Excellency the Govebnoe to the Hon. the Postmastee-Geneeal. To the Eight Hon. Eichard John Seddon, Postmaster-General. In pursuance of the provisions of section eight of " The Post Office Act, 1881," I, Uchter John Mark, Earl of Eanfurly, Governor of the Colony of New Zealand, do hereby direct you, Eiehard John Seddon, Postmaster-General of the said colony, to enter into a contract on behalf of the Government of the said colony with the Union Steam Ship Company of New Zealand (Limited) for the carriage of mails each way between Auckland and San Francisco • for the period from the thirty-first day of March, one thousand eight hundred and ninety-eight, to the thirty-first day of March inclusive, one thousand eight hundred and ninety-nine, the' contract to be subject in all respects to the terms and conditions of the resolutions attached hereto, passed in the House of Eepresentatives on the thirteenth day of December, one thousand eight hundred and ninety-seven. Given under my hand, at Timarn, in the said colony, this eleventh day of February, one thousand eight hundred and ninety-eight. Eanfuely.