F.—l.

England-Australia Service. The London-Australia air-mail service, which commenced in December, 1934, provides a valuable alternative service for the exchange of mails between Great Britain and New Zealand. Under normal conditions the service enables mails exchanged weekly to reach their destination in seventeen days. During the past year, owing to delays which occurred through unforeseen circumstances, the average time taken by mails exchanged between New Zealand and Great Britain was slightly over eighteen days. Since the commencement of the service there has been a steady increase in the volume of mail carried, as the following table will show : —

Penang - Hong Kong Service. Another air service of interest to New Zealand was inaugurated during the year between Penang and Hong Kong. This service connects at Penang with the Australia-England service and permits of considerable acceleration for correspondence from New Zealand for Hong Kong, China, and Japan. Royal Jubilee Air-mail. On the occasion of the Silver Jubilee of His late Majesty King George V arrangements were made for a Jubilee air-mail to be carried from Australia to New Zealand and back by the monoplane " Southern Cross." Piloted by the late Sir Charles Kingsford Smith, who had with him Captain P. G. Taylor as navigator and co-pilot, and Mr. J. W. Stannage as wireless operator, the machine left Sydney at 12.30 a.m. on the 15th May. When the aeroplane was about 450 miles out from Sydney portion of the exhaust-pipe of the centre engine broke off and splintered the starboard propeller, putting the engine out of action. This unfortunate mishap necessitated a return to Sydney, which was reached at 5.40 p.m. Owing to the extreme difficulty experienced in keeping the machine in the air on the return journey with only two engines functioning, the crew decided reluctantly to jettison the greater portion of the mails on board. Twenty-one bags containing 28,780 letters were despatched by the " Southern Cross " and fourteen bags containing 27,503 letters were thrown overboard, the remaining seven bags containing 1,277 letters being saved. POSTAGE-STAMPS. Pictorial Stamps. The new pictorial series of stamps, to which reference was made in previous reports, was placed on sale on the Ist May, 1935. For the convenience of those who desired stamps postmarked on the day of issue, a series of six pictorial envelopes was distributed from all post-offices free of charge. In addition, a pamphlet describing the design of each denomination of the series was issued. Owing to difficulty in obtaining a correct register of the watermark on stamps of the pictorial issue, it was decided to print further supplies on paper watermarked multiple " N.Z. Star." The first denominations printed on the new paper were issued in March. Jubilee Stamps. The Silver Jubilee of His Majesty King George V was commemorated by the issue, from the 7th May to the 22nd June, 1935, of a special set of three stamps, |d., Id., and 6d., prepared and printed by Messrs. Bradbury, Wilkinson, and Co., Ltd., England. The border of the stamps was designed by Mr. J. Berry, Wellington. Cook Islands, Niue, and Western Samoan current stamps of the denominations Id., 2§d., and 6d., overprinted " Silver Jubilee of King George V, 1910-1935," were placed on sale from the 7th May, 1935, to the 6th August. The Cook Islands and Niue stamps were printed in colours other than those of the current issue. Health Stamps. For the 1935 " Health " stamp campaign in support of the Children's Health Camp Fund a special stamp of the denomination 2d. (Id. for postage and Id. for the fund) was issued. Designed by Mr. S. Hall, Wellington, and engraved and printed by the Commonwealth Note and Stamp Printer, Melbourne, the stamp " The Key to Health " depicted a child in bathing-costume playing at the seaside, the scene being set in a frame of keyhole shape. An illustrated envelope with a "Health" stamp affixed was provided. This was sold at 3d. (2d. for the Health Campaign Fund and Id. for postage).

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Despatched from New Zealand. Received in New Zealand. Number. Weight. Number. Weight. lb. lb. June quarter . . .. . • 35,031 920 23,273 922 September quarter .. . . 30,459 927 34,028 1,368 December quarter .. .. 36,520 1,072 40,576 1,582 March quarter 35,894 1,085 48,159 1,765 Total .. .. •• 137,904 2,004 146,036 5,637