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No. 16. The Hon. the Colonial Secbetabt to the Hon. the Colonial Seceetaey, New South Wales. Sib, — Colonial Secretary's Office, New Zealand, 4th March, 1874. I have the honor to enclose a Memorandum by Mr. Vogel on the subject of an application made by the contractors for the Californian mail service for an extension of the limit of the period fixed for the temporary service. I shall be glad to be favoured with the views of your Government on this proposal, and with advice of the action, if any, that may be taken by the Postmaster-General of New South Wales in regard to it. I have, &c, The Hon. the Colonial Secretary, Sydney, Daniel Pollen. • New South Wales.

Enclosure in No. 16. Memobandum for the Colonial Seceetaet. The contractors for the Californian mail service have addressed a letter to the Hon. Saul Samuel and Mr. Thomas Russell, asking that they may be allowed an extension of two or three months for the temporary service, as they are not certain that the new boats will be ready by the time provided by the contract. Mr. Eussell, who forwards the letter to me, advises that the contractors have done all that has been possible to expedite the construction of the boats, and he evidently thinks that it would be well the extension of time should be allowed. I have, therefore, to advise that this department will agree to the extension, if the PostmasterGeneral of New South Wales approves of it. I think it desirable there should be an understanding that any application of the kind shall be dealt with by the two Governments jointly. I propose, consequently, not to make any present reply to the contractors : but if the Postmaster-General of New South Wales should approve of granting the extension, he will be able to signify to the contractors that the Governments concur on the subject. General Post Office, March 3, 1874. Julius Vogel.

No. 17. The Hon. the Colonial Seceetabt, New South "Wales, to the Hon. the Colonial Seceetaey. Sib, — Colonial Secretary's Office, Sydney, 14th March, 1874. I have the honor to acknowledge the receipt of your despatch dated 4th instant, enclosing a Memorandum by Mr. Vogel on the subject of an application made by the contractors for the Californian mail service, for an extension of the limit of the period fixed for the temporary service. 2. Tour letter has been laid before the Postmaster-General of this colony, who recommends that, under the circumstances stated in the contractors' letter to Mr. Eussell and himself, dated 27th November last, the request of the Contractors be complied with. 3. This request, as stated by themselves, is for permission to continue the temporary service for two or three months over the contract time, the 27th November, 1874, should they from unforeseen circumstances require that " extension," the contractors consenting, in the event of this concession being made, to receive subsidies for the extended time calculated according to the scale in the schedule "to the permanent contract. 4. This Government, on the recommendation of Mr. Samuel, has decided to comply with the contractors' request, and this decision, conjointly with that of New Zealand, has been communicated to them accordingly, as suggested in Mr. Vogel's Memorandum. I have, &c, The Hon. the Colonial Secretary of New Zealand. Henet Paekes. By Authority: Gloege Didsbuby, Government Printer, Wellington.—lB74, Trice Is. 3<£]