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Zealand prepaid Id. per half-ounce would be accepted without surcharge as from the Ist proximo, and arrangements have accordingly been made to introduce the penny rate as from that date. T liave, &c, W. Gray, The Secretary, General Post Office, London. For the Postmaster-General. I P.O. 06/263(7).]

No. 8. The Assistant to President, Oceanic Steamship Company, San Francisco, to the Hon. the Prime Minister, Wellington. Sir, — San Francisco, 2nd November, 1906. Enclosed please find copy of communication from Postmaster-General Cortetyou, relative to penny postage. ********* F. S. Samuels, The Hon. the Prime Minister, Wellington. Assistant to President.

[P.O. 06/263(7).] Enclosure in No. 8. The Postmaster-Gkneral, Washington, to Mr. John D. Spreckels, jun., Oceanic Steamship Company, San Francisco. Sir, — Office of the Postmaster-General, Washington, D.C., 20th October, 1906. Your letter of the 3rd October [not printed] has been given careful consideration in connection with a letter from Hon. Sir J. G. Ward, of Wellington, dated the Bth October [1 September. Not printed]. The Administration of New Zealand prefers a reduction of postage-rates on all letters exchanged between the two countries. A similar request from any of the republics of South America or from England would be equally entitled to favourable consideration, but it has not been deemed practicable to reduce postage-rates between countries of the Union generally, especially pending the date when the Universal Postal Convention recently concluded at Rome will become operative, Ist October, 1907. The alternative proposition suggested by Sir Joseph Ward, and strongly urged by yourself, seems unobjectionable—in fact, desirable—and a cablegram has been sent to Sir Joseph Ward to-day in these words: — " New Zealand letters prepaid penny rate delivered in United States without surcharge after November first. Letter follows." On and after the Ist November, 1906, letters originating in New Zealand and prepaid at the penny rate of postage—namely, 2 cents for each half-ounce—will be delivered to addresses in this country without surcharge or collection of additional postage; the postage-rate on letters originating in this country for delivery to addresses in New Zealand to remain as at present — 5 cents for each half-ounce —pending the general reduction of postage agreed to by the Rome Convention, effective on and after the Ist October, 1907. Yours, &c, Gbo. B. Cortelyou, Postmaster-General. Mr. John D. Spreckels, jun., Oceanic Steamship Company, San Francisco.

No. 9. The Hon. the Prime Minister to the High Commissioner. (Telegram.) Wellington, 7th November, 1906. Postage to United States reduced to one penny half-ounce from first instant. Advise Imperial Post Office and Heaton. Also inquire if date yet fixed for ounce minimum, Imperial penny post. [P.O. 06/263(7).]

No. 10. The Hon. the Postmaster-General, Wellington, to the Postmaster-General, Washington. Si R) General Post Office, Wellington, Bth November, 1906. I have the honour to acknowledge the receipt of your telegram of the 20th ultimo as follows: [No. 4], and to confirm my telegram of reply of the 22nd idem in the following terms: [No. 6]. It is difficult to adequately express the satisfaction I feel at the influential recognition which your great country has thus given to the principle of the penny post. It realises one of my most

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