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No. 163. The Genebal Manager, Union Steam Ship Company, Dunedin, to the Seceetary, General Post Office, Wellington. (Telegram.) Dunedin, 6th November, 1901. Thanks for wire. We do not wish to appear impatient, but had December time-table in view.

No. 164. The Secretary, General Post Office, Wellington, to the General Manager, Union Steam Ship Company, Dunedin. (Telegram.) Wellington, 11th November, 1901. Fb'isco service and interprovincial running: I fear it will be end of month before we hear definitely from Spreckels about renewal. Meanwhile you had, perhaps, better go on with your December time-table providing for "Takapuna" leaving here on Wednesday, we sending mails by train Friday morning, lam afraid, however, there will be trouble with respect to the inward mail if you arbitrarily fix 4 p.m. as the hour of departure irrespective of the time the Frisco steamer reaches Auckland. This, however, can be threshed out later on, and the question of subsidy discussed.

No. 165. The General Manager, Union Steam Ship Company, Dunedin, to the Secretary, General Post Office, Wellington. (Telegram.) Dunedin, 20th November, 1901. Beferbing to your telegram eleventh, I think I explained that neither Northern Company nor ourselves consider a daily service between New Plymouth and Onehunga is warranted by present condition or immediate outlook of trade, and our offer to Eailway Department to undertake it experimentally was subject to your Department approving of arrangements for Fr'iseo mail connection. If you have doubts as to our proposals being satisfactory, it would, perhaps, be inadvisable for us to initiate daily service with the prospect of its breaking down. Owing to mail arrangements, we are anxious furnish satisfactory coastal connection with Fr'iseo, and at same time do not wish to be penalised in connection subsidy because we are endeavouring to meet wishes of Eailway Department. Kindly reply.

No. 166. The Secretary, General Post Office, Wellington, to the General Manager, Union Steam Ship Company, Dunedin. (Telegram.) Wellington, 20th November, 1901. Be your letter of 4th October, my telegram of 11th instant, and yours of to-day: The file of papers is before the Postmaster-General, but I hope he will be able to deal with matter on his return from Palmerston on Friday. Meantime my reference to the hour of departure from Onehunga and reconsideration of subsidy should not, I think, in any way affect your decision to give the daily service a trial. The subsidy matter had particular reference to the fact that it may frequently happen that the service will not be performed beyond New Plymouth, the Department having to provide connection from and to Wellington ; but this ought to be susceptible of mutual settlement without impinging on the larger question of the daily service.

No. 167. The General Manager, Union Steam Ship Company, Dunedin, to the Seceetary, General Post Office, Wellington. (Telegram.) Dunedin, 22nd November, 1901. Have decided give daily service a trial, and am announcing it next month's time-table. It is, however, subject to satisfactory arrangement re subsidy coastal carriage Fr'iseo mail. We urge that if to suit Eailway Department we undertake two extra trips a week between New Plymouth and Onehunga we should not be prejudiced if the running will not admit of our carrying mail between New Plymouth and Wellington. Approximate Cost of Paper.— Preparation, not given;! printing (1,450 copies), £29 14s.

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