SAN FRANCISCO MAIL SERVICE.

E.—No. 4

15

No. 22. The Hon. Chaeles Cowpee to the Hon. the Colonial Seceetaet. '■■.. Sic,— • , Sydney, 29th August, 1870. "s. The Postmaster-General of this Colony having communicated to me a letter received by him from the Postmaster-General of New Zealand, under date the 2nd instant, having reference to my letter of the sth May last on the subject of the Mail Service via California, I have now the honor to inform you that this Government has placed on the Supplementary Estimates of Expenditure for this year an amount at the rate of £10,000 per annum, and on the General Estimates of Expenditure for the year 1871 the sum of £10,000, as the contribution of New South AVales towards the maintenance of the Mail Service via California, from the date of its commencement. 2. The Estimates referred to will shortly be submitted, and there is little doubt that Parliament will sanction the payment of the contribution proposed therein. 3. It will of course be understood that the payment of the amount in question by New South AVales will bo conditional on the observance of the provisional agreement dated 6th January last. 4. I have the honor to add that, under the circumstances just explained, this Colony will, in anticipation of your approval, continue to forward mails by the steamers leaving Sydney every month. 5. A communication to the above effect has, I understand, been addressed by the PostmasterGeneral of this Colony to the Postmaster-General of New Zealand, for despatch by the outgoing mail. I have, Ac, The Hon. the Colonial Secretary, New Zealand. Chaeles CowrEE.

No. 23. The Hon. J. Vogel to the Hon. the Colonial Seceetaet, New South Wales. Sic,— AVellington, 17th September, 1870. I have the honor, on behalf of the Colonial Secretary, to acknowledge the receipt of your letter of 29th August, in which you inform him that your Government have placed on the Supplementary Estimates for this year, an amount at the rate of £10,000 per annum, and on the General Estimates for 1871 the sum of £10,000, as the contribution of New South AVales towards the maintenance of the Mail Service via California, from the date of its commencement; and you add that it will of course be understood that payment of the amount in question by New South AVales will be conditional on the observance of the provisional agreement, dated 6th Jauuary, 1870. In reply, I have the honor to point out to you that circumstances have now rendered it beyond the power of this Government to abide by that provisional agreement. You will, I hope, acquit this Government of anything but an anxious desire to give effect to the arrangement entered into in January last; but we have found it difficult even to obtain replies from your Government to our communications ou the subject, and there has been nothing to warrant us in submitting to the Assembly the question of approving the provisional agreement. On the other hand, the Californian Service has been continued, and you did not even propose to this Government to make the current contribution towards it, as asked by my letter of the 10th January last, and which, before I left Sydney, it was understood you would do under any circumstances. Instead of making a current contribution, you offered a payment of 20s. per lb. for mails carried for New South AVales, a payment which would have been of very little use indeed towards aiding the contract. The Assembly of New Zealand met after your Parliament had been adjourned, and it appeared very evident to us that we should have to make our own arrangements. I have the honor to enclose to you a copy of resolutions on the subject, which were adopted by our Assembly. You will understand that these resolutions contemplate a possible change of the service, so that I am not now at liberty to make any arrangement with you beyond that you should, as was originally understood, contribute towards the service at the rate of £10,000 a year from its commencement. I have to add, that should any modification of the service be effected, the intention is to arrange for thirteen services during the year, and, if your Government is willing to contribute, to so regulate the voyages as to make the service alternate in Sydney with that via Suez. I hope, therefore, you will I have no difficulty in agreeing to postpone any final arrangements until we have had an opportunity of further discussion —probably a personal one, as may be arranged; and that meanwhile your Government will agree to pay at the rate of £10,000 a year from the commencement of the service. Should this be agreed to, I shall be obliged by your remitting to me the amount due up to the present time, in order that I may pay it to the contractor, less about £1,000 which I have had to pay him on your account, I having in Sydney guaranteed to him £2,000 as a contribution from New South AVales during the first six months of his contract period. I have, Ac, The Hon. the Colonial Secretary, Sydney, N.S.W. Julius Vogel.

No. 24. The Hon. Dan. Egan to the Hon. the Postmaster-General. Sic — General Post Office, Sydney, 29th August, 1870. I have the honor to acknowledge the receipt of your letter dated the 2nd instant, F. 70-136, havin" reference to a communication dated the sth May last, which was addressed by the Colonial Secretary of this Colony to the Government of New Zealand, on the subject of the Mail Service via California. 2. In reply, I have much pleasure in informing you that the Government of this Colony has placed on the Supplementary Estimates of Expenditure for this year an amount at the rate of £10,000 per annum, and on the General Estimates of Expenditure for the year 1871 the sum of