E.— No. 2.

No. 1. The Hon. D. Egan to the Hon. the Postmaster-General. Sir, —- General Post Office, Sydney, 10th June, 1869. With a view to the adjustment of the Panama Mail Service Account between New Zealand and New South Wales, I do myself the honor to request that you will be so good as to cause statements to be furnished to this office, with as little delay as possible, showing the amounts collected by New Zealand, and the amounts credited to your office by the General Post Office, London, for correspondence transmitted via Panama. I have also to ask you to favour me with a statement of the weights of the mails forwarded to and from the non-contracting Colonies, via Wellington, for the purpose of enabling this office to render the necessary accounts to such Colonies, and to collect the amounts due for the services rendered. I have, &c, The Hon. the Postmaster-General, Wellington, Dan. Egan, New Zealand. Postmaster-General.

No. 2. The Hon. D. Egan to the Hon. the Postmaster-General. Sir,— General Post Office, Sydney, 9th July, 1869. I do myself the honor to acknowledge tho receipt of your letter dated the Bth June, 1869 (F. 69-75), together with its enclosures, on the subject of subsidies paid and still due to the Panama. New Zealand, and Australian Boyal Mail Company. In reply, I beg to state that, after careful"consideration of the whole matter, it appears that the Government of New South Wales is liable to that of New Zealand for the sum of £4,533 6s. Bd., less a moiety of £2,625, amount of penalties payable by tho Panama, New Zealand, and Australian Eoya Mail Company for non-despatch of steamers from Sydney in the months of January and February last. As these penalties are not of an ordinary nature, (the Company having become liable to them in consequence of their inability, through heavy losses, to carry on the service—a contingency which, I apprehend, was not contemplated when the contract was entered into), they cannot, it is thought, be claimed exclusively by the New Zealand Government, under the 6th clause of the Articles of Agreement between the two Colonies. It has, therefore, for the present, been decided to pay into the Union Bank, to the credit of your Government, the sum of £3,270 16s. Bd. only, until it is settled how the penalties are to be apportioned. Agreeing, however, with the sentiments of the New Zealand Government on the question of penalties, as conveyed in the letter dated the 28th January last, addressed to me by Mr. Hall, I am disposed to advise that this Government should waive its claim to a share of these penalties, provided the Government of New Zealand will do the same. With reference to that portion of your letter now under reply, which relates to the postage accounts between this Colony and New Zealand in connection with the Panama Mail Service, I beg to state that the matter will receive immediate attention, and will form the subject of a further communication to be addressed to you on an early day. I have, &c, The Hon. the Postmaster-General, Wellington, Dan. Egan, New Zealand. Postmaster-General.

, Panama Papers, , 1869, No. 42, p. 19— E. No. 2.

No. 3. The Hon. J. Vogel to tho Hon. the Postmaster-General, Sydney. Sir,— General Post Office, Wellington, 2nd August, 1869. I have the honor to acknowledge the receipt of your letter of the 10th June, and to forward No. 1 of this herewith, as requested, a statement of the weights of the mails forwarded via Panama, for London series, and Panama, from non-contracting Colonies in Australia ; and also a similar statement of the weights of mails from London and Panama. A statement showing the amounts of postage collected by New Zealand on correspondence by the Panama route, and of the amounts credited to this office by the General Post Office, London, for correspondence transmitted via Panama, was forwarded to you in my letter of the Bth June last. I have, &c, Julius Vogel, The Hon. the Postmaster-General, Sydney. Acting Postmaster-General.

FURTHER PAPERS RELATIVE TO THE PANAMA MAIL SERVICE.