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No. 102. The Besident Agent for New Zealand, San Francisco, to the Secretaky, General Post Office, Wellington. Sir, — San Francisco, 12th October, 1897. I have the honour to report and confirm the receipt of the following cable, viz.: [see No. 96]. Upon receipt of this cable I at once called upon Messrs. Spreckels and Brothers in reference thereto. These gentlemen represented that, on account of the wide publicity given their advertisements as to date of sailing both in the United States and in Europe, it would be extremely difficult to arrange for the change at such a short notice, and, further, that they were informed that the fast steamers of the Cunard Company were only scheduled to make three more trips this year before being withdrawn for their winter lay-up. Under these circumstances, and in consideration of their agreeing to use their best endeavours to make up the time lost by the detention at this port if they were permitted to retain the usual day of departure, I cabled as follows : [see No. 98], in response to which I received the cablegram reading [see No. 99]. Upon receipt of these instructions I addressed a communication to the contractors, copy of which is enclosed, informing them that they would be permitted to retain the sailing-day of Thursday on condition that every endeavour was used to recover the time lost by the detention, by accelerating the voyage to the colonies after departure from this port. As it is not probable that the fast steamers of the Cunard Company will resume their running before April of next year, I would suggest that early instructions be given the contractors to so arrange their advertisements that they will be in a position to leave on Wednesdays, if necessary, on the first of that month. Trusting that my action in regard to this matter will meet with your approval, I have, &c, H. Stephenson Smith, W. Gray, Esq., Secretary, General Post Office, Wellington. Eesident Agent.

Enclosure in No. 102. The Resident Agent for New Zealand, San Francisco, to the J. D. Spreckels and Brothers Company, San Francisco. Eesident Agency of the Government of New Zealand, 428, California Street, Gentlemen, — San Francisco, 22nd September, 1897. I have the honour to report, as the result of cable communication with my Government, that the steamships now under contract with the New Zealand Government for the conveyance of the colonial mails will be permitted to retain the present sailing-day of Thursday from this port until further notice, conditionally upon every exertion being used by the contractors to make good the detention at this port upon the downward voyage, upon occasions when the through British mails arrive at this port prior to Thursday. I have, &c, H. Stephenson Smith, Eesident Agent, New Zealand Government. Messrs. J. D. Spreckels and Brothers, 327, Market Street,, San Francisco, Agents, Union Steam Ship Company of New Zealand (Limited).

No. 103. The Eesident Agent for New Zealand, San Francisco, to the Secretary, General Post Office, Wellington. Sir, — San Francisco, 13th October, 1897. I have the honour to acknowledge the receipt of your communication of the 18th September, to hand this day via Vancouver, having reference to the proposed change of the sailingdate of the contract steamers from this port, and also instructing me in regard to the detention of steamers in cases where the United States mails do not arrive at this port as early as the through colonial mails. In regard to the alteration of the sailing-date for the present season, the cable instructions lately received dispose of this matter for the present. I will not therefore make any communication to Washington until arrangements are completed for next season. Your instructions in regard to the detention of steamers in order to connect with delayed United States mails will receive due observance. I have, &c., H. Stephenson Smith, Eesident Agent. W. Gray, Esq., Secretary, Post and Telegraph Department, Wellington.

No. 104. The Secretary, General Post Office, Wellington, to the Resident Agent for New Zealand San Francisco. Sir,— General Post Office, Wellington, 12th November, 1897. I have the honour to acknowledge the receipt of your'letter of the 12th ultimo, confirming the cablegrams and detailing the action taken by you in connection with the proposed change of