In order, therefore, to accelerate the transmission of the large number of newspapers which now reach New Zealand via Suez, I have to request that the collection for account of the New Zealand Post Office of one penny on each newspaper posted in Great Britain for transmission via Panama, may be discontinued, and that you will cause to be forwarded via Panama all newspapers for New Zealand which are not specially directed to go by some other route. I have, &c, The Secretary, General Post Office, London. John Hall.

No. 40. Mr. Tilley to the Hon. John Hall. (No. 10,254.) General Post Office, Sic, — London, 29th January, 1869. I beg to acknowledge the receipt of your letter of the 21st November last, in which you state that the postal communication between this country and New Zealand via Suez, having become tardy and uncertain since the withdrawal of the regular mail steamers between New Zealand and Australia, which was formerly maintained in connection with the Suez Mail, it will be desirable to send via Panama, in future, all newspapers for New Zealand which are not specially addressed to be forwarded by some other route. With the view of promoting such route, you request that the charge of one penny, which has hitherto been collected in this country, and accounted for to your office, upon each newspaper posted in the United Kingdom for transmission via Panama, may be discontinued. You were evidently not aware, when you wrote the letter above referred to, that difficulties had arisen with regard to the continuance of the Mail Service between Panama and New Zealand by means of the Panama, New Zealand, and Australian Royal Mail Company's packets. I have lately received a letter from the Secretary of that Company in London, stating that the Company have no packet at Panama to carry on the mails for New Zealand and Australia, which, in due course, should be despatched from this office on the 2nd proximo, and it is believed (although I am not yet officially informed of the fact) that the Panama Service has come entirely to an end. Notice has been issued to the public, that no mails will be made up for transmission via Panama on the 2nd proximo, and the correspondence for New Zealand, so far as it may be posted in time, will be forwarded via Marseilles by the mail of this evening. I have, &c, The Postmaster-General, Wellington, J. Tilley. New Zealand.

No. 41. Mr. Page to the Hon. John Hall. (No. 10,254.) General Post Office, Sic, — London, 19th February, 1869. Referring to my letter of the 29th ultimo, I beg to inform you that I have since received a letter from the Secretary of the Panama, New Zealand, and Australian Royal Mail Company, stating that the Company are unable to continue the Mail Service between Panama and New Zealand, which they have hitherto performed under a contract with the New Zealand Government. Under these circumstances, a notice has been issued to the public in this country, stating that mails will no longer be despatched to New Zealand and the Australian Colonies via Panama, and that all correspondence for New Zealand will in future be forwarded in the mails from this country via Suez. I have, &c, The Postmaster-General, Wellington. W. J. Page.

No. 40 of this series.

No. 42. The Hon. E. W. Staffoed to the Postmaster-General, New South Wales. (No. 1,240-69.) New Zealand General Post Office, Sir,— Wellington, Bth June, 1869. I have the honor to acknowledge the receipt of your letter of the 22nd February last, enclosing a Report by the Treasury Accountant of your Colony on the subject of the subsidies paid and still due to the P.N.Z. and A.R.M. Company, and requesting to be furnished with information on certain points referred to in that report. With a view of supplying this information, I beg to enclose two statements (1 and 2) showing the Postal Services performed by the P.N.Z. and A.R.M. Company, the subsidies earned by them, the payments made to the Company by New Zealand, the payments made by New South Wales, and the amount still due to the Company. I beg also to furnish you, in Enclosure No. 3, with categorical answers to the questions with which the Treasury Accountant concludes his report. In connection with this subject, it is probable you would desire to be informed of the state of the account between the two Colonies for postages collected in New Zealand and in the United Kingdom on correspondence conveyed by the Panama steamers. Until further information is received in this office from London, it is not practicable to supply a final and definite statement of this account, but I enclose an approximate statement (No. 4), which, subject to corrections to be made on receipt of the above information, will, I believe, be found correct. You will perceive that, after payment of the charges for transit across the Isthmus of Panama, there remains the sum of £16,726 15s. Bd. to be divided in equal moieties between the two Colonies. From the moiety, £8,363 7s. 10d., accruing to New South Wales, there has to be deducted the sum of £3,477 ss. 10d., being the amount due to New Zealand for postages collected in Australia as per

No. 36 of this I series.

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E.—No. 2.

THE PANAMA MAIL SERVICE.