F.—l.

With the new time-table operating, a vessel of the Matron line now regularly takes departure from Auckland for San Francisco in the week following the sailing of the contract steamer for Vancouver This has resulted in increasing use of the Matson steamers for specially addresse correspondence for North America and Great Britain and Europe. On the all-sea route between New Zealand and England a number of steamers have continued to make passage via Cape Horn and this route is now principally used for the despatch of second-class matter and parcels to Great Brit The a " withdrawn in April from the Fiji-Tonga-Samoa service and was replaced by the " Waipahi " a slower steamer. The " Morinda " was withdrawn from the Auckland-Norfolk Island-New Hebrides - Lord Howe Island service in January; and it has since been necessary for corresDondence for the islands named to be forwarded via Sydney. T , +T , Te new mission vessel "Southern Cross," which left Auckland for the Solomon Is lands on the 25th October, became a total wreck at Aneityum on the 31st October, despatched by the vessel were lost: Auckland-Yamkoro (Solomon Islands), o bags , Auckland Vureas Franksrinds)! 2 bags; Auckland-Vila (New Hebrides), 2 bags; Papeete-Vila (New Hebrides), 1 bag. Exchange of Parcels with United States op America. A new agreement, replacing one entered into in 1900 was executed during the year to govern the exchange of post parcels between New Zealand and the United States of America . h An important feature of the new agreement, which became effective on the Ist Octoberis that provision is made for the exchange of insured parcels, the limit of insurance being £20 m respect of any individual parcel. Prior to the execution of the new agreement parcels exchanged between the two countries could be registered but not insured, and the maximum amount for which compensation for loss or damage could be claimed was £2. Export of Gold by Post. The provisions of the Export Licenses Order of 1931 were revoked on the 30th June, so that a license from a Collector of Customs is not now required for the export of gold by post. Bullion : Special Charge eor Postings to Australia. To meet the cost of providing strong-room accommodation on the conveying steamers a special charge at the rate of 3d. an ounce avoirdupois, m addition to postage and insurance fee has been levied since the 4th November on all post-packages containing bullion addressed to Australia. AIR MAILS. Occasional special air-mail flights continue to be made. The Westland Aero Club conveyed mails on a special flight from Hokitika to Okuru via Waiho Gorge on the 28th September, and on the «■> th, following day. Th, u.ual ,i,-m.il charge of 3d. a. ou„c, proceeds, less the 1\ per cent, deduction to meet departmental costs being expended on the Western Aero Club's behalf in an alteration to the telephone-lmes at the Hokitika aerodrome. On the 24th December the New Zealand Air League arranged a series of flights similar to those undertaken by the League on the previous Christmas Eve. The routes were— (1) Gisborne-Hastings-Palmerston North, and return; (2) Wellington - Palmerston North- Wanganui-Hawera- New Plymouth Auckland , (3) Palmerston North - Wellington - Blenheim - Christchurch - Timaru - Oamaru Dunedm Invercargill. The total number of articles carried on these Christmas flights was 6,729, as compared with 17,027 in the previous year. The postage revenue received was paid to the Air League, less a dedU The n nu f mbt P of letters posted in New Zealand during the year to connect with overseas air mails was 7,361. POSTAGE-STAMPS. Proposed Series of New Zealand Pictorial Stamps. Unforeseen difficulties have delayed the issue of the new series of pictorial postage-stamps for the Dominion designs for which were adopted towards the end of 1931. It was stated m last year s report that tenders had been invited in England for the production of the stamps by the photogravure process. Quotations were duly received, and a tender accepted. However upon the arrival of the proofs in New Zealand it was found that they failed to reach the standard of excellence desired, and it was decided to abandon the photogravure process of production m favour of the intaglio or line-engraved process. Negotiations for the production of the stamps m Ln g la nd y the latter process are almost completed, but it is not yet possible to state when the stamps will be aVan Thl e design originally selected for the Is. denomination of the proposed new series (a droving scene) has been found to be unsuitable for reproduction as a postage-stamp. It has therefore been replaced by a design depicting a tui in a natural setting of New Zealand scenery.

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