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No. 73. The Secretary, General Post Office, London, to the Hon. the Postmaster-General, Wellington. Sir, —- General Post Office, London, 29th January, 1906. With reference to your letter of the 25th November last, I am directed by the PostmasterGeneral to inform you that arrangements have now been made with the Shaw, Savill, and Albion Company and the New Zealand Shipping Company for the conveyance of the parcel mails from this country to New Zealand. Payment for the service, as from the Ist October last, will be made by this Department to the companies at the rate of id. for each parcel not exceeding 3 lb. in weight, Bd. for each parcel exceeding 3 Ib. but not exceeding 7 lb., and Is. for each parcel exceeding 71b. but not exceeding 11 lb. With regard to your letter of the 19th October last, concerning the payments made by your office to the shipping companies in excess of the proportion of the postage credited to you in respect of the sea conveyance of parcels from this country, 1 am to state that the question of reimbursing your office, so far as the amounts paid to the companies for the period from the Ist July, 1904, to the 30th September, 1905, are concerned, is now under the consideration of the PostmasterGeneral, and that a further letter on the subject will be sent to you as early as possible. I am, &c, The Postmaster-General, Wellington. H. Buxton Forman.

No. 74. The Acting-Secretary, General Post Office, Wellington, to Messrs. Levin and Co., Wellington. Gentlemen, — General Post Office, Wellington, 26th February, 1906. I beg to return, with thanks, copy of the letter from the Shaw, Savill, and Albion Company (Limited), London, to the Secretary, General Post Office, London, in connection with the charges for postal parcels to and from New Zealand, despatched by steamers of that company. Yours, &c, Messrs. Levin and Co. (Limited), Wellington. Thomas Hose, Acting-Secretary. [P.O. 05/3062.]

Enclosure in No. 74. The General Manager, Shaw, Savill, and Albion Company, London, to the Secretary, General Post Office, London. Shaw, Savill, and Albion Company (Limited), 34 Leadenhall Street, London, E.C., 30th December, 1905. Sir, — Parcels Post to and from New Zealand. Referring to your letter of 18th instant and to our representative's interview with your Mr. Arthur G. Ferard on 28th instant, we have as desired given full consideration to your request for the continuance of the existing service, but at reduced rates of payment to the carrying vessel. We beg to point out that in many cases the vessels receiving similar remuneration are also in receipt of mail subsidies, that the packages are very bulky in relation to their weight, and that a corresponding bulk of empty packages has to be brought back freight free, and often at times when space homewards is very valuable. Considerations of this nature and others to which we need not allude lead us to the conclusion that the rate hitherto paid us is by no means in excess of fair remuneration for services rendered, and that we should hardly have been asked to reduce it. We understand from you, however, that if the present rate is to be paid us the postage -on parcels must be increased, and, although New Zealand is specially favoured in this respect, we recognise the advantage to the colony of the present low rates. We are therefore willing to bear our share of what this involves, and will accede to your request. We understand the arrangement is to be, — (1.) We are to be paid postage at the following rates: 4d. for each parcel not exceeding 31b. in weight; Bd. for each parcel exceeding 3 lb. but not exceeding 7 lb.; Is. for each parcel exceeding 71b. but not exceeding 11 lb. (2.) These rates are to be also applicable to homeward parcels. (3.) The payment for outward parcels to be made by you; for homeward parcels in New Zealand. We understand the New Zealand Shipping Company are intimating their willingness to act similarly, and we understand that they and we are to share the work.' We are, &c, Shaw, Savill, and Albion Company (Limited), J. A. Potter, General Manager. The Secretary, General Post Office, London.