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No. 93. The Secretary, General Post Office, Wellington, to the Postmaster, Vancouver. Sir— General Post Office, Wellington, 12th February, 1908. I have the honour to inform you that the Postmaster, Fanning Island, represents that it would be a decided convenience to the residents if it could be arranged for your office to make up direct mails for the island in place of the correspondence being sent forward on Sydney and Suva as at present. The Postmaster recently notified that the last call to be made at Fanning Island on the northward voyage by the steamers of the Canadian-Australian Line would be that of the " Aorangi " on the 2nd instant, and that, commencing with the departure of the " Moana " from Vancouver on the 27th proximo, the steamers would call at the island every eight weeks on the southward voyage. I shall be glad if you can see your way to give effect to the Postmaster's request. I have, &c, The Postmaster, Vancouver, B.C. D. Robertson, Secretary. [O.R. 1862-08/ I.]

No. 94. The Right Hon. the Secretary of State for the Colonies to His Excellency the Governor. My Lord,— Downing Street, 13th March, 1908. I have the honour to transmit to you for the information of your Ministers .... the papers noted in the subjoined schedule on the subject of steamship communication with Fanning Island. I have, &c, The Officer administering the Government of New Zealand. Elgin.

Enclosure 1 in No. 94. The Chairman, Pacific Cable Board, London, to the Under-Secretary of State, Colonial Office, London. Sir, — The Pacific Cable Board, Queen Anne's Chambers, London, S.W., 10th March, 1908. Under an arrangement entered into between the Pacific Cable Board and the Union Steam Ship Company of New Zealand, as owners of the Canadian-Australian Royal Mail Line, the steamers of the line, since October, 1904, have called at Fanning Island once every eight weeks — i.e., on every alternate run —on the northward voyage from Sydney to Vancouver City. The arrangement was made subject to the approval of the Postal authorities of the Governments interested, and was liable to cancellation after one month's notice by either side. On the 28th December last the Board received notice from the head office of the company in Dunedin, New Zealand, that in future they proposed to call at Fanning Island on the southward voyage, commencing with the s.s. " Moana " leaving Vancouver on the 27th March. The arrangements for the victualling and relief of the Board's establishments at Fanning Island were duly made on the above understanding ; but on the 4th March the Board received notice by cable from its representative in Australia that the Commonwealth Government had objected to change of calls at Fanning Island, while the Union Steam Ship Company state that it is impossible for them to call on northward trip and maintain times stipulated in the contract. The Board's representative has been asked to ascertain from the Commonwealth Government the grounds on which the objection has been taken, but no reply has yet been received, and the subject is one that may require some little time in settlement. It will probably be impossible to get the matter arranged in the ordinary course in time for the sailing of the " Moana " on the 27th instant, and as the cable service will be very seriously inconvenienced if the " Moana " does not call at Fanning on its approaching voyage, the Board finds it necessary to approach His Majesty's Government with the hope that it may be possible to ask the Canadian and Commonwealth Governments, by cable, if the call of the mail-steamers at Fanning Island on the southward voyage may provisionally be sanctioned for the voyages commencing at Vancouver on the 27th March and on the 22nd May next, so as to afford the necessary time for considering the matter. The call at Fanning Island involves about one hundred and fifty-one miles of extra steaming as compared with the direct course. The stay of the steamers at the island is limited to six hours, and usually lasts only two to four hours. The total delay due to the call is therefore only about twelve hours, and, so far as the Board is aware, this small delay on the long voyage between Sydney and Vancouver has been the cause of no inconvenience. It is immaterial to the Board whether the call at Fanning Island is on the northward or southward voyage, but the only practicable alternative to the call of the mail-steamers once in eight weeks would involve the purchase or charter of an auxiliary-screw schooner to ply between Fanning and Honolulu, and from the inquiries that have been made, such a

Date. Date. Description. 1908. [arch 10th .. [archil lth (telegram) From Pacific Cable Board. To Governors-General, Canada and Australia. % [O.R. 1852.]