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This was insisted upon by the French Government. There is no doubt that the intention of the New Zealand Government was to assist the trade of the Cook Islands, otherwise they would never have subsidized the service to such an extent." I trust that you will endeavour to put the whole matter before the Hon. the Postmaster-General as early as convenient. I have, &c, D. F. Skinner, Secretary. The Private Secretary to the Hon. the Postmaster-General, Parliamentary Buildings. Wn.-S.F. 12/148.]

No. 24. The Secretary. Departmeni of Agriculture, Industries, and Commerce, to the Secretary, General Post Office, Wellington. Department of Agriculture, Industries, and Commerce, (Memorandum.) Wellington, 23rd August, 1912. This Department has received complaints from linns interested in the Cook Islands trade, in regard to the action of the Union Steam Ship Company in refusing liability for any damage to goods while awaiting shipment at Rarotoiiga by mail-steamers, and in regard to the uncertainty as to the length of time which the boats will stay at Rarotonga. It is asserted that there is a possibility of fruit cargoes being shut out from the steamers, and that the Union Company accepts no liability for this. Shippers ask that the matter be dealt with in connection with the New Zealand Government's contract for the San Francisco mail-service, and I understand that you have already gone into the matter. I shall be glad to know what the position is. and whether an arrangement satisfactory to the Cook Islands shippers has been come to. F. S. Pope, Secretary. The Secretary, General Post Office, Wellington. [Wn.-S.F. 12/149.1

No. 25. The Resident Agent for New Zealand, San Francisco, to the .Secretary, General Host Office, Wellington. Resident Agency for New Zealand, Sir, — 311 California Street, San Francisco, 29th August, 1912. I have the honour to acknowledge the receipt of your communication of the 18th ultimo, referring to the detention at this port of the contract steamers conveying the mails to the Dominion when it is necessary to hold the steamers for a longer period than that provided for in the existing contract. I would point out to you, however, that the condition that the Department in New Zealand must be communicated with by cable when it is desired to hold the steamers beyond forty-eight hours is scarcely practicable, as it is extremely rarely that the necessity to hold the steamers beyond the time specified is known more than a few hours prior to the expiration of the forty-eight hours, and consequently the arrangement will fail to be effective unless the Union Steam Ship Company's agents are notified to accept my detention-notice for the extended time, irrespective of whether they have received advices from the head office of the company or not. I shall, of course, notify you of the further extension of time when the same is necessary ; but if it is to be of any benefit to the service my request will have to be complied with at once, and not deferred to await advices from New Zealand. There will probably be no difficulty experienced in arranging for the required detention ; but I desire to place the matter before you, so that a workable arrangement can be arrived at. I have, &c, H. Stephenson Smith, Resident Agent for the Dominion of New Zealand. The Secretary, General Post Office, Wellington. [Wn.-S.F. 12/166.1 -

No. 26. The Secretary, General Post Office, Wellington, to the Secretary, Department of Agriculture, Industries, and Commerce, Wellington. San Francisco Mail-service: Shipping of Fruit from Rarotomjn. (Memorandum.) General Post Office, Wellington, tth September, 1912. I attach a copy [not printed] of the opinion of the Crown Law Office on the question as to whether under the San Francisco mail-service contract the Union Steam Ship Company is warranted in requiring shippers to sign an undertaking that the company will not be held responsible for damage to goods caused by failure to ship or delay in shipment due to the exigencies of the mail-service. Mr. D. F. Skinner, of Messrs. Townsend and Paul, who represented the matter to the PostmasterGeneral, is being informed that the Department is advised that there is no provision in the mail-contract to prevent the company requiring the undertaking being given. F. V. Waters, For Secretary. The Secretary, Department of Agriculture, Industries, and Commerce, Wellington. LWn.-S.F. 12/158.]

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