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P.—6

No. 35. The Resident Agent for New Zealand, San Francisco, to the Secretary, General Post Office, Wellington. Sir, — Resident Agency for New Zealand, San Francisco, 19th December, 1907. I have the honour to acknowledge the receipt of your communication of the 14th October last. I note the long trips taken by the two first Weir ships. The record certainly is not reassuring as an outlet for mails, although the cargoes are running extremely heavy. The " Boveric," leaving this week, is claimed to be a faster vessel, so I hope better results will be obtained. As regards a subsidy to this line from the United States, the agents in this city inform me that the report is without any foundation ; they are simply running upon the Postal Union rates. I am in receipt of your cable reading as follows [No. s], to which I cabled you on the 13th [No. 6]. I interviewed Messrs. Spreckels and Co., and they state that there is absolutely no foundation for this report. Nothing has been done in the matter, and they do not expect to do anything in this direction in the near future. I do not think anything can be done with the Spreckels steamers that will be of any benefit, unless new boilers and possibly new machinery are installed, which would be quite an expensive undertaking that the outlook at present does not justify. The only hope would appear to be in the establishment of a fast service via Vancouver until the conditions regarding the United States contribution are in a more satisfactory condition. I have, &c, H. Stephenson Smith, The Secretary, General Post Office, Wellington. Resident Agent. [S.F. Agr. 08/10.]

No. 36. The Secretary, General Post Office, Wellington, to the Superintendent of Foreign Mails, Washington. Sir, — General Post Office, Wellington, 9th January, 1908. In reference to my letters of the 10th and 18th ultimo, respecting the transhipment at Auckland of United States mails for Australia ex the " Foreric " and " Yeddo " : I have now the honour to inform you that on the 24th ultimo the mails for Australia ex the " Quito " were transferred at Auckland and sent to their destination by way of Wellington. The mails left Wellington for Sydney on the 27th ultimo, while the " Quito " did not leave Auckland until the 28th idem. I have, &c, W. R. Morris, for Secretary. The Superintendent of Foreign Mails, Post Office Department, Washington, D.C. [*.!•'. I'ayts. 08/5.]

No. 37. The Second Assistant Postmaster-General, Washington, to the Hon. the Postmaster-General, Wellington. Post Office Department, Office of the Second Assistant Postmaster-General, Division of Sir, — Foreign Mails, Washington, D.C, 31st January, 1908. By direction of the Postmaster-General, I have the honour to acknowledge the receipt of your letters of the 10th and 18th ultimo, stating that the mails for Australia, despatched from San Francisco per the steamers " Foreric " and " Yeddo " which arrived at Auckland on the 30th September and the 28th October last, respectively, were transhipped on those dates to vessels of the Union Steam Ship Company for quicker despatch to Sydney ; the distance from Auckland to Sydney being 1,277 miles. You ask this Department to compensate the Union Steam Ship Company for the conveyance of the mails in question from Auckland to Sydney ; and inquire whether it is desired that mails received in future be likewise transhipped, with a view to expedite the delivery of the mails for Australia. It is taken for granted that the delivery of the mails at Sydney was materially expedited by being transhipped at Auckland, although you do not state the number of days gained thereby ; and in that view, this Department is willing to bear the expense involved, at the rate fixed by the Universal Postal Convention of Rome for maritime transits. You state that the distance from Auckland to Sydney is 1,277 miles. Article 4of the Rome Convention provides for a rate of 4 francs per kilogram of letters and post-cards, and 50 centimes per kilogram of other articles, to be paid for maritime transits not exceeding 1,500 nautical miles. I have to request, therefore, that you will compensate the Union Steam Ship Company, at the rates named, for its services in conveying from Auckland to Sydney the mails for Australia despatched from San Francisco by the steamers " Foreric " and " Yeddo " on the 30th August and 27th September last; and claim credit therefor in the general account between the two Departments. The weights of the mails in question, as of record in this Department, are as follows : — Steamer " Foreric " : Letters and post-cards, 289,474 grams ; other articles, 5,295,216 grams. Steamer " Yeddo " : Letters and post-cards, 327,512 grams ; other articles, 6,687,931 grams. I have, &c, J. T. McCleary, The Hon. the Postmaster-General, Wellington. Second Assistant Postmaster-General. [S.F. Payts. 08/10.]