F.—6b.

and three (being the date on which the original term expired by effluxion of time). And it is hereby also mutually declared and agreed that all the provisions of the said agreement shall apply to the said extended term in like manner in all respects as if it were the original term, and the said agreement shall operate and be construed accordingly. In witness whereof these presents have been executed by the parties hereto, the day and year first above written. Signed and sealed by the Honourable Sir\ Joseph George Ward, K.C.M.G., as Post- [ j q Ward master-General of New Zealand, in the! presence of— ) J. Hislop, Private Secretary, Wellington. The common seal of the J. D. Spreckels] and Brothers Company was hereunto L [Seal.] John D. Spbeckels. affixed in the presence of— j Febdk. S. Samuels.

No. 6. The Secretaby, General Post Office, Wellington, to Mr. Dunnbt, Wellington. Sm,— General Post Office, Wellington, 29th August, 1903. I have the honour, by direction, to acknowledge the receipt of your letter of the 2nd ultimo, submitting a proposal from the Oceanic Steamship Company to enter into a new contract for the carriage of mails to San Francisco for a term of five years for an annual subsidy of £25,000 for seventeen voyages a year, and to make a special arrangement with regard to the tourist traffic in New Zealand. In reply, I am to inform you that Government intends to propose to the House of Bepresentatives a renewal of the service under existing conditions. It is therefore regretted that the proposal of the Oceanic Steamship Company cannot be entertained. I have, &c, W. Gray, Secretary. Geo. Dunnet, Esq. (of Messrs. Henderson and Macfarlane, Auckland), Empire Hotel, Wellington.

No. 7. Mr. Dunnet, Wellington, to the Hon. the Postmasteb-Genebal. Oceanic Steamship Company (American and Australian Line), Sib,— Wellington, 9th September, 1903. I have the honour to acknowledge receipt of letter dated the 29th August, stating that the proposal of the Oceanic Steamship Company for an annual subsidy of £25,000 for carrying New Zealand mails to San Francisco cannot be entertained, and that the Government intends to propose to the House of Eepresentatives a renewal of the service under existing conditions. In reply, I beg to inform you that I do not think the Oceanic Steamship Company will renew the contract under existing conditions, as the service is being run at a loss. I have, &c, The Hon. the Postmaster-General, Wellington. Geo. Dunnet.

No. 8. The Secretary, General Post Office, Wellington, to Mr. Dunnet, Wellington. Sib, — General Post Office, Wellington, 14th September, 1903. I have been directed to acknowledge the receipt of your letter of the 9th instant, referring to the proposal of the 2nd July last of the Oceanic Steamship Company to renew the San Francisco mail-service agreement with this colony for a period of five years at an annual subsidy of £25,000, and advising that you did not think the company would renew the contract under existing conditions. The Postmaster-General desires me to inquire whether he is to regard the proposal of the company as a definite indication that it will not renew the contract for a smaller payment than £25,000 per annum. lam to point out that it would be useless for Government to submit resolutions to the House of Eepresentatives for the renewal of the service only to find that, after they are dealt with, the company declined the terms offered. You were informed on the 29rh August last that Government had decided not to propose a higher payment than that now made the contractors. I have, &c, George Dunnet, Esq., Empire Hotel, Wellington. W. Gray, Secretary.

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