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should be employed to carry a mail from Auckland to Kandavau, starting from Auckland after arrival from Sydney of steamer carrying mails thence on 29th instant, upon payment to the " Cyphrenes " of the mail money, £2,307 13s. 10d., for which sum "Cyphrenes" will carry incoming mails per "Tartar "from Auckland ports in New Zealand, the outgoing mail from Auckland to Kandavau. " Cyphrenes " advertised to sail to-morrow, 18th, to Sydney. If Government of New Zealand will guarantee payment, and you will send me a message to that effect, I will detain vessel. If you agree, I beg to suggest your requesting Mr. Yon der Heyde to telegraph to Henderson and Macfarlane to engage " Cyphrenes " to wait for " Tartar."

No. 46. The Hon. J. Vogel to Mr. McCoemick. (Telegram.) Wellington, 18th August, 1874. Totje telegram not very intelligible. By Mr. Parker, of the Government of New South Wales, do you mean Hon. Mr. Parkes ? Then what is the object of our sending mails to Kandavau ? How do you propose they shall be carried from Kandavau onwards ? For what' do you propose we should pay £2,300 ? Is it merely for taking " Tartar's " mails South, and the outward mails to Kandavau ? Do you propose we should pay the whole sum, or is Sydney to pay one-half ? At present your proposition is not intelligible, but I have no doubt it arises from your telegram having been incorrectly rendered. If your proposition is that " Cyphrenes " shall go to Frisco and return from Frisco to Auckland, the money being payable on such return, the Government may be disposed to entertain it, and would send you answer on understanding that such is nature of your proposal. Copy of your telegram as received is appended.

No. 47. Mr. McCoemick to the Hon. J. Vogel. (Telegram.) Auckland, 18th August, 1874. I eegeet you have had trouble about my telegram. There are mistakes caused by the telegraph, but I admit that it is not sufficiently explicit if you had no other information on the subject. When I sent it I assumed you had, either directly or through Mr. Thomas Russell, received some communication from the Hon. Mr. Parkes, of the New South Wales Government, mentioning the proposed arrangements for carrying on the mail service. I now furnish you with copy of correspondence between Mr. Parkes and Mr. Watt, of Gilchrist, Watt, and Co., which I think will of itself explain the matter:— " 11th August, 1874. My dear Mr. Watt, —I am writing to the New Zealand Government. If we arrange for a vessel from here on the 29th, could you place the ' Cyphrenes ' at New Zealand, so as to perfect the service as provided for by contract if the subsidies are secured ? —Tours faithfully, He3S'ey Paekes." " Sydney, 11th August. My dear Mr. Parkes, —If the Government of New South Wales, or of New Zealand, guarantee the payment to 'Cyphrenes' of mail money, £1,153 16s. lid., the ' Cyphrenes' will proceed from Auckland down the New Zealand coast to Port Chalmers with the mail; and on being paid or promised by either Government the sum due in respect of the outward mail, £1,153 16s. lid., the ship will proceed with the mails up the New Zealand coast to Auckland, and thence to Kandavau, where she will meet the boat leaving here on her voyage to San Francisco, and at same time meet the ' Macgregor,' and will take on board the mails and cargo from the ' Macgregor ' and come here with them, ' Macgregor' proceeding to New Zealand with the mails. More than this the 1 Cypllrenes ' cannot do without coming here for an overhaul. —Tours faithfully, J. B. Watt. To the Hon. Henry Parkes." Together with this copy of correspondence I received instructions from Gilchrist, Watt, and Co. to authorize the captain of the " Cyphrenes " to carry out the arrangement if the New Zealand Government would join in guaranteeing the money as stated in Mr. Watt's letter; but my instructions are not full. It appeared to me, if the " Cyphrenes" were allowed, to go to Sydney, it would entirely prevent the arrangement being carried out; and as the captain, relying on other instructions to him, proposed going at once to Sydney, I thought it proper to detain him until I communicated with you. In asking your Government to guarantee the mail money, I act only, as I think, on my instructions, but I do not hesitate to say that if anything occurs to render it unnecessary for the " Cyphrenes " to do all Gilchrist, Watt, and Co. offer she shall do, she would then only be entitled to receive payment for services actually rendered, and if the New Zealand Government will guarantee she shall be paid the mail money to be earned, or at all events at the rate paid by the charter-party under which she has hitherto been employed in carrying the mails on this service—namely, £1,500 per calendar month —the owners will be satisfied. I assume, also, that the New Zealand Government and the New South Wales Government will arrange for the payment between them of the money required to carry on the service. My object in communicating with you is consideration for the convenience of the Government of this colony. I believe New South Wales would carry on the mail service from that colony, even if this colony will not join. I hope this will effectually answer your questions, without particularly referring to them. I beg the favour of a reply as early as possible,

No. 48. The Hon. J. Vogel to Mr. McCoemick. (Telegram.) Wellington, IStli August, 1874. After considering your telegram, the Government would prefer not making any arrangement for " Cyphrenes." Our indisposition to arrange does not arise from want of desire to co-operate with New South Wales Government. But regular connection with Kandavau seems so uncertain at present, that we would not feel justified in sending mails that way. Therefore it would be injudicious to enter into arrangements.