E.—No. 4.

Enclosure 2 in No. 85. Mr. J. B. M. Stewaet to the Hon. Julius Vogel. Sic, — Honolulu, 26th January, 1871. I beg to inform you that I arrived here on my way to New Zealand and Australia, with a view to contract for a monthly mail service between San Francisco and the Colonies ; but finding you here, I take the liberty of addressing you upon the subject. Without entering into the question of Mr. Neilson's authority to contract with you, I am willing to enter into a contract, taking the former as a basis with certain modifications, but must express my objections, in the strongest terms, to that part which provides for the continuance of the same from Auckland to Port Chalmers, and am prepared to accept of a very much less subsidy if this service to Port Chalmers is abandoned. I would likewise insist that some definite route should be fixed upon, instead of having four optional lines, as stated in the contract referred to. I am also willing to extend the line to Sydney or Aielbourne, if required, and would prefer a contract wherein the contractor would participate in the subsidy paid by the Australian Governments. I shall be glad to hear from you at your earliest convenience. I have, Ac, W. H. AVebb, The Hon. Julius A'ogel, By his Attorney in fact, Postmaster-General of New Zealand. J. B. M. Stewaet.

Enclosure 3 in No. 85. The Hon. Julius Vogel to Mr. J. B. AL Stewaet. Sic,— Honolulu, 26th January, 1871. I have the honor to acknowledge the receipt of your letter of this day's date, in which you inform me that you have arrived here on your way to New Zealand and Australia, for the purpose of negotiating a monthly mail service between San Francisco and the Colonies, but that finding me here you preferred to address me on the subject; and in which you also state that you are willing, as attorney for Air. W. H. Webb, to discuss with me the terms of a contract on the basis of the agreement made by me in New Zealand with Mr. Neilson, but you specify grounds of objection to certain points of that agreement. In reply, I have to say, that whilst I claim the right to enforce the agreement made with Mr. Neilson, on behalf of Holladay and Brenham and the North Pacific Transportation Company, I shall be prepared, without prejudice to the validity of that agreement, to discuss with you, on my way to San Francisco —to which place I would suggest you should return —any of the modifications of the agreement which you state you consider essential, and to which I may feel myself at liberty to agree. I must, however, at once inform you that it is quite impossible I can consent to any modifications in tho prescribed route of the contract vessels which would have the effect of reducing the number of ports of call in New Zealand, that part of the arrangement being simply in conformity with the express terms of the resolutions on the subject adopted by the House of Representatives. In other respects, so far as the interests of New Zealand will permit me to do so, I shall be glad to consult Mr. AVebb's wishes; but as I have already entered into a contract, you will see that it is only right, before I consent to any modifications of it, that you should indemnify me for doing so, and undertake that the parties to it, other than myself, will submit to any fresh arrangements I make with you. I have, Ac, J. B. M. Stewart, Esq. Julius A rOGEL.

t Enclosure No. 2.

Enclosure 4 in No. 85. Mr. J. B. Al. Stewaet to the Hon. Julius A 7 ogel. At sea, on board the p.s. " Aloses Taylor," Sic, — Between Honolulu and San Francisco, 29th January, 1871. In reply to the request of your letter of the 26th instant, that in case you consent to any I modifications in the contract you made with Mr. Neilson, on behalf of Alessrs. Holladay and Brenham and the North Pacific Transportation Company, I would indemnify you for doing so, and undertake that the parties to the contract, other than yourself, will submit to any fresh arrangements I make with you, I have to say that I represent Air. W. H. AVebb and Mr. B. Holladay, who are the owners of the steamers referred to in the contract; and that I undertake on their behalf to procure the consent of the parties to the contract, other than yourself, to any fresh contract I make with you, and to indemnify you against any claims that may be recoverable against you on account of your making such fresh contract. I also agree to see that any actual pecuniary liabilities incurred for coals ordered on account of that contract, or for advertisements of the steamers, shall be paid. I have, Ac, J. B. AL Stewaet, The Hon. Julius A'ogel. Agent for W. H. AVebb and Ben Holladay.

Euelosure No. 3.

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SAN FRANCISCO MAIL SERVICE.