F.—6

26

5. During the winter months, when there is not a daily service from Onehunga and New Plymouth, the Monday steamer from Onehunga will wait till noon Tuesday, if necessary, for the inward mail, without extra payment. Should the mail arrive later in the week, and it be necessary to detain the steamer after noon Tuesday, a demurrage payment of £50 to be made for the first twenty-four (24) hours from noon Tuesday, or any portion thereof, and a proportionate payment for detention -beyond twenty-four (24) hours. 6. During the same period, when the inward mails arrive at Auckland on a Wednesday, they are to be forwarded by the Northern Company's steamer leaving that day, for transfer to the train at New Plymouth the following morning—either the ordinary through train or a special. 7. That there be a steamer at Wellington to take on the inward mails to Lyttelton without unreasonable delay. 8. That the service covers seventeen voyages each way within the twelve months, dating from the departure of the steamer from the Manukau on the 16th November last, and from Lyttelton on the 10th November last, and to be for a period of three years, unless the existing San Francisco mail contract is annulled meanwhile. 9. Payment to be made at the rate of £119 17s. 6d. per voyage each way. Please confirm the above. I have, &c, James Mills, The Secretary, General Post Office, Wellington. Managing Director.

No. 104. The Seceetaey, General Post Office, Wellington, to the Managing Dieectoe, Union Steam Ship Company, Dunedin. Sic,— General Post Office, Wellington, 17th May, 1904. I have the honour to acknowledge the receipt of your letter of the 20th ultimo, detailing the conditions of the new agreement for the interprovincial collection and distribution of the San Francisco mails, and asking for a confirmation of the same. The conditions numbered in your letter 1 to 3, inclusive, 6, 8, and 9 are approved. Paragraph 5, giving new conditions in respect of demurrage, is also approved. In regard to condition No. 4, it is desired that during the continuance of the daily service, when the inward mail arrives at Auckland on Monday or Wednesday, the Department shall be the sole judge when the mail shall be landed at New Plymouth and forwarded by train. Condition No. 7 : In this case also the Department should be the judge as to what may or may not be unreasonable delay on arrival of the mails at Wellington for transhipment to Lyttelton. The subsidy of £4,076 for the seventeen voyages each way, at the rate of £119 17s. 6d. per voyage, is agreed to ; the term of the service to be for three years, as already set out in my letter of the 28th March last, from the 16th November last year from Manukau and the 10th idem from Eyttelton. An adjustment will be made as from these dates in respect of payments since made. I have, &c, The Managing Director, W. Geay, Secretary. Union Steam Ship Company of New Zealand (Limited), Dunedin.

No. 105. The Managing Dieectoe, Union Steam Ship Company, Dunedin, to the Seceetaey, General Post Office, Wellington. Union Steam Ship Company of New Zealand (Limited), Sib— Dunedin, 23rd May, 1903. I have the honour to acknowledge receipt of your letter of the 17th instant, in re new agreement for the interprovincial collection and. distribution of San Francisco mails, from which I note that the conditions mentioned in our letter of the 20th April are approved generally. I have, &c, D. A. Aitken, The Secretary, General Post Office, Wellington. For Managing Director. Approximate Cost of Paper.— Preparation, not given; printing (1,605 copies), £15 12b.

By Authority : John Mackay, Government Printer, Wellington.—l9o4. Price Is.]