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VANCOUVEE SEE VICE.

No. 35. The Superintendent of Foreign Mails, Washington, D.C., to the Hon. the Postmastee-Genbral, Wellington. Sir,— - Washington, D.C., 16th April, 1903, I have the honour, by direction of the Postmaster-General, to acknowledge the receipt of your reply, under date of the 14th January [not printed], to this Department's letter of the 22nd May last [No. 98, F.-6, 1903] relative to the transhipment at Honolulu, for forwarding thence to San Francisco, of mails for the United States despatched from New Zealand by means of steamers sailing for Vancouver, whenever the delivery of the mails will be thereby expedited; in which reply you suggest that it would be well if articles for certain north-western States were enclosed in sacks addressed to the office of Seattle, to be carried on to Vancouver instead of being forwarded with the rest of the mails from Honolulu to San Francisco. In reply, I have to inform you that your suggestion is approved by this Department, and to request that you will cause articles destined for delivery in the States of Washington, Idaho, Montana, and North Dakota to be included in the sacks addressed to the office of Seattle. I am, &c., N. M. Brooks, Superintendent of Foreign Mails. The Postmaster-General, Wellington. [P.O. 02/3091.]

No. 36. The Secretary, General Post Office, Wellington, to the Superintendent of Foreign Mails, Washington, D.C. Sir,— ' General Post Office, Wellington, 27th May, 1903. I have the honour to acknowledge the receipt of your letter of the 16th ultimo on the subject of the transhipment at Honolulu of mails for the United States despatched hence for conveyance by steamer to Vancouver. In reply, I have to inform you that, as requested, arrangements have been made for New Zealand mail-matter destined for delivery in the States of Washington, Idaho, Montana, and North Dakota to be included in mails addressed to Seattle on occasions when mails for the United States are forwarded by steamer to Vancouver. The balance of the mails for your country will, as at present,'be labelled " United States: To be landed at Honolulu.' , I have, &c, The Superintendent, Office of Foreign Mails, W. Gray, Secretary. Post Office Department, Washington, D.C.

No. 37. The Vancouver Mail-service.—The New Contract. Arrangements (says the Argus of the 7th June [1905]) have been made for a continuation of the present Vancouver mail-service. The Postmaster-General said yesterday: "The contract which the Barton Government made with the Union Steam Ship Company for a mail-service between Australia and Canada expired on the 31st May [having been extended for three months on expiry, 28th February]. When seeking a renewal of the contract, the Union Steam Ship Company asked the contracting countries—Canada, Fiji, and the Commonwealth—to increase the old subsidy (£60,000) to £80,000 for a term of three years, for a service much the same as that which had been run for the last three years —three steamers maintaining a monthly service. On the. 11th May, I, on behalf of the Cabinet, offered to enter into a new contract at the old rate of subsidy for twelve months, to date from the Ist August, the contract to extend for a further period of twelve months—that is, two years altogether —unless three months' notice of termination should be given prior to'the 31st July, 1906. I had already received a communication from the Canadian Government on the subject,"but at the time I made this proposal I had not heard finally from Fiji. Mr. D. Mills, the Melbourne manager of the company, asked for time to enable him to cable to his Head Office in London. I agreed to this, and on the Ist instant I received a reply from him, saying that the Union Steam Ship Company were prepared to carry on the service under the old conditions, providing that the subsidy was increased by £6,000, Canada paying £3,000 of this amount, the Commonwealth £2,700, and Fiji £300. I tried to get a faster service, but I could not obtain this concession, and niter further consultation with the other colonies, I have agreed to these terms. The Union Steam Ship Company will therefore carry on the present monthly service, and it will receive an additional subsidy of £6,000. Mr. D. Mills informed me to-day that these conditions are acceptable to his company, and our final arrangements will be put into proper form in the morning. To-morrow I will be able to explain at greater length the course of the negotiations and the reasons for the increase of subsidy. The steamers will adhere to the present route. That is to say, Brisbane will be one of the ports of call. The New Zealand Government wanted the steamers to call at Auckland, instead of Brisbane: but this change will not be made." [Van. News 05/67.]