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It was the opinion of this Department that, provided no deduction was made for the conveyance of the mails between San Papeete, your company would receive the maximum Postal Union rates of 8 francs per kilogramme (34 - 56d. per pound) for letters and post-cards, and 1 franc per kilogramme (4 - 32d. per pound) for other articles. The Postmaster-General, Washington, however, states that the maximum rates allowable by his Administration for the sea-conveyance of United States mails despatched by steamers not on the United States register are 4 francs per kilogramme (17"28d. per pound) for letters and post-cards, and 50 centimes per kilogramme (2T6d. per pound) for other articles. If Postal Union rates were paid, your company would be entitled to payment for the PapeeteWellington section only—namely, 3 francs 13 centimes per kilogramme (13 - 52d. per pound) for letters and post-cards, and 39 centimes per kilogramme (l - 69d. per pound) for other articles. This Department cannot, of course, insist on the Postal Union rates for the whole of the sea conveyance being paid for the Papeete-Wellington section only ; and, as the rates which the Washington Post Office is prepared to pay for the Papeete-Wellington section are higher than the Postal Union rates for that section, no doubt you will prefer to accept the former. I have, &c, W. R. Morris, Acting-Secretary. The General Manager, Union Steam Ship Company of New Zealand (Limited), Dunedin. [P.O. 08/3861.] ____^^^^_^__^^_

No. 50. The Acting-Secretary, General Post Office, Wellington, to the Second Assistant PostmasterGeneral, Washington. Sir,— General Post Office, Wellington, 4th February, 1909. In order that this office may be in a position to render accounts on behalf of the Union Steam Ship Company of New Zealand for the conveyance of mails from Tahiti to New Zealand by the line of steamers subsidised by this Department, I have the honour to inquire whether you are agreeable to accounts being rendered on a statistical basis in accordance with the usual Postal Union practice, and, if so, to request that you will be good enough to keep a record of the weights of all mails despatched from your offices during May next for conveyance by the steamers referred to. I have, &c, W. R. Morris, Acting-Secretary. The Second Assistant Postmaster-General, Division of Foreign Mails, Washington, D.C. [Letters in similar terms sent on same date to the Director of Posts, Papeete, the Deputy Postmaster-General, Ottawa, and the Secretary, General Post Office, London.] [P.O. 09/311(2).]

No. 51. The Manager, Union Steam Ship Company, Wellington, to the Acting-Secretary, General Post Office, Wellington. Sir, — Union Steam Ship Company of New Zealand (Limited), Wellington, 18th February, 1909. I beg to enclose copy of letter, dated 16th instant, received from my head office, in reference to the payment of mailage on matter shipped from Sydney to Wellington for transhipment to " Manapouri " here. I shall be obliged if you will look into this matter, so that we may be able to advise our Sydney office as may be necessary. Thanking you in anticipation. I have, &c, The Acting-Secretary, General Post Office, Wellington. W. A. Kennedy, Manager. [P.O. 09/311(5).]

Enclosure in No. 51. The General Manager, Union Steam Ship Company, Dunedin, to the Manager, Union Steam Ship Company, Wellington. Sir,— Union Steam Ship Company of New Zealand (Limited), Dunedin, 16th February, 1909. Referring to your letters of 6th and 21st November and ours of 14th idem, our understanding from correspondence, also from conversation we had with Mr. Robertson here, is that the New Zealand Postal Department will collect from other countries the mailages due for matter despatched from New Zealand by the new service, and pay the same to us according to Postal Union rates. We have just received a letter from Sydney manager, however, advising that they have received from the New South Wales PostJOffice payment as follows, for mails per " Mokoia," connecting with " Manapouri " for the United States :— £ s. d. Sydney letters, 48 lb., at 2s. .. .. .. . - .. 416 0 packets, &c, 10 cwt. 2 qr. 4 lb., at 4s. per cwt. .. .. 2 2 6 Other Australian States' letters, 142 lb. 13 oz., at 2s. .. .. 14 5 8 Other Australian packets, &c, 16 cwt. 1 qr. 10 lb., at 4s. per cwt. .. 35 4 £24 9 6 • This represents the cost of carriage hence [from Sydney] to Wellington per " Mokoia." The carriage from that port to destination we understand is covered by the contract with the New Zealand Government.

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