F.—2

2

stance of an agreement provisionally entered into by Mr. Samuel and Mr. Russell, acting on behalf of the Governments of New South Wales and New Zealand respectively, for a mail service between the two colonies and San Francisco ; and in which letter you make suggestions respecting the completion of the details of the contract, and you state that you would at once inform Mr. Samuel that your Government was prepared to confirm the agreement. I have the honor to state, in reply, that I share with you the conviction that great advantage will be gained by cordial co-operation between New South Wales and New Zealand, not alone with respect to the contemplated San Francisco service, but generally; and I think I may assure you of the desire of this Government to promote such co-operation. I enclose a copy of the telegram received from Mr. Russell, as to the agreement made by Mr. _ Samuel and himself. I also enclose a copy of a telegram which I forwarded to you per " Claud 3 Hamilton," and a copy of the resolution adopted by the House of Representatives of New Zealand on the 16th instant. That resolution was included in a cable message, addressed to Mr. Russell, which was sent per " Claud Hamilton" for transmission from Melbourne. I have already pointed out to you, in my telegram, that I conceived you had misunderstood Mr. Samuel's message ; and that it was intended the steamer from Kandavau to New Zealand should visit more than one port of the colony. lam sure that you will not object to this. Mr. Samuel, as you will have observed, says that the " fork" service " will cause no more delay at Kandavau than branch service;" and I need scarcely add that New South Wales will not be affected, whether the steamer which makes the voyage from Kandavau to New Zealand remains in one port until her day for starting on the return voyage, or visits several of our ports during the interval. I will not at present refer to the other points raised in your letter, since I am not now in possession of the information necessary to enable me to do justice to them. I am sure you will recognize that, with respect to points which may arise in connection with the contract upon which decisions have to be given, it is right the concurrence of this Government should be obtained. But as to the details of the contract generally, Mr. Russell is fully empowered to act for New Zealand ; and I have no doubt that, in settling those details, he will be anxious to do all that is possible to meet Mr. Samuel's views. I have, Ac, The Hon. the Colonial Secretary, New South Wales. Julius Vogel.

F. No. 3b, 1873, No. 9.

Enclosure in No, of this series.

Enclosure in No. 2. The Hon. J. Vogel to the Hon. H. Pabkes. (Telegram.) Wellington, 20th September, 1873. Appbove arrangement made by Mr. Samuel and Mr. Russell. Have telegraphed Russell to that effect. Written you privately, and will write officially in few days. You do not quite realize arrangement made by Samuel when you say in your letter, "to and from a port in New Zealand." Arrangement is, to call at various ports here, as under Webb contract. This will not, however, in slightest degree affect you, since it will make no difference whether steamer to New Zealand remains in one port or visits several. In point of distance to be steamed, it will be about equal to New South Wales and to New Zealand. Hon. Henry Parkes. Julius Vogel.

No. 3. The Hon. J. Vogel to Mr. Russell. Slß,— General Post Office, Wellington, 30th September, 1873. I have the honor to enclose copy of a resolution adopted by the House of Representatives on the subject of the Californian mail service, and also copy of the report of the debate which took place. I beg you to observe that, although there was a division in the House, there was not raised any question affecting your action in the matter; on the contrary, the opinion seemed to be unanimously entertained that you had most ably and successfully conducted the negotiations. I have to assure you that such is the opinion of the Government, and I have pleasure, on their behalf, in thanking you for your services. A copy of the resolution of the House was forwarded to you by telegraph. I have, &c, Thomas Eussell, Esq., London. Julius Vogel.

Enclosure in No. 3. Resolved, That this House approves of the arrangement entered into by Mr. Russell with Mr. Samuel, for a steam mail service vid San Francisco, on the understanding that such arrangement is as follows:— The Colonies of New South Wales and New Zealand jointly to contract for a twelve-knot service between San Francisco and Sydney, and San Francisco and Port Chalmers, for six years, to be commenced within twelve months. Thirteen round trips to be performed each year. The boats to be of 2,500 tons gross burden, or equal to 2,000 tons register. The route to be to and from Sydney and San Francisco, vid Kandavau, and to and from Port Chalmers and San Francisco, vid Lyttelton, Wellington, Auckland, and Kandavau, calling off Napier each way. The boats from Sydney and from Port Chalmers alternately to proceed through to San Francisco, and the boats from San Francisco alternately to proceed through to Port Chalmers and to Sydney. Transhipments to be made at Kandavau.