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Francisco mail-steamer should be addressed to the Mail Agent of the vessel, in order to obviate the his company required him to pursue that course. I attach a copy of the instructions referred to, from which you will observe that the manager of the Canadian-Australian Royal Mail line in Sydney states that his company has been requested by the Postal authorities in New Zealand to point out that bags of letters, &c, from steamers of the Canadian-Australian line which may be landed at Honolulu for delivery on board a San Francisco mail-steamer should be addressed to the Mail Agent of the vessel, in order to obviate the possibility of the correspondence reaching the Honolulu Post-office, and being surcharged in consequence. No trace can be found of the issue of any such instructions by this office, and I think there must be some misapprehension on the part of the manager of the Canadian-Australian Royal Mail line in Sydney. . Under Postal Union regulations, an intermediary office like Honolulu is entitled, and compelled by international agreement, to take charge of mails for transhipment as in this case. What is most likely referred to by the manager in Sydney is that loose letters posted by passengers should be made up in a bag addressed to the New Zealand Mail Agent. 1 shall be obliged if you will look into the matter, and let me know as early as possible what gave rise to the instruction, in order that I may reply to Washington. I have, &c, W. Gbat, Secretary. The Managing Director, Union Steam Ship Company of New Zealand (Limited), Dunedin.

No. 41. The Secretary, General Post Office, Wellington, to the Superintendent op Foeeign Mails, Washington. Sir, — General Post Office, Wellington, 2nd October, 1905. I have the honour to acknowledge the receipt of your letter of the 18th July last, stating that the office of Honolulu had reported that on the arrival at Honolulu on the 27th June of the steamer " Miowera " the master of that steamer, claiming to be acting under instructions from his company, refused to deliver there certain Australian and New Zealand mails destined for the United States, except for direct transfer from the " Miowera " to the steamer " Alameda." In reply, I beg to inform you that the General Manager of the Union Steam Ship Company was written to in the matter, and has sent me in reply a letter, copy of which is attached, from which it appears that the irregular action of the master of the " Miowera " was the result of a misunderstanding on the part of the company. Your enclosure is returned herewith. I have, &c, W. GbaTj Secretary. The Superintendent, Office of Foreign Mails, Post Office Department, Washington, D.C.

Enclosure in No. 41. The General Manager, Union Steam Ship Company, Dunedin, to the Secretary, General Post Office, Wellington. Union Steam Ship Company of New Zealand (Limited), Sib, Dunedin, 28th September, 1905. With reference to your favour of the Bth instant regarding the transfer of letters from " Miowera " to the San Francisco mail steamer at Honolulu, I am sorry to observe that there was apparently a misunderstanding of the instructions we sent to our Sydney manager on the 15th February,, in response to your letter of the 6th idem. It appears that they read the requirement to apply to all mails instead of to ship's loose letters only. We have rectified this, so that there shall be no recurrence of the incident reported to you. I have, &c, R. McK. McLennan, for General Manager. The Secretary, General Post Office, Wellington.

No. 42. The Acting-Secretary, General Post Office, Wellington, to the Secretary, Postmaster-General's Department, Melbourne. S IR) _ General Post Office, Wellington, 20th February, 1906. Referring to my letter of the 16th June last, asking for copies of the agreement for the renewal of the contract for the carriage of mails betw-een Australia, Fiji, and Canada, and to your reply of the 28th idem [not printed], I have the honour to inquire whether you are yet in a position to send the promised copies. I have, &c, Thomas Rose, Acting-Secretary. The Secretary to the Postmaster-General's Department, Melbourne.