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your concurrence. If your Government is in a position to forward the New Zealand mails to Kandavau—and I write under the belief that the " Cyphrenes " can be employed for that purpose—no break need occur on this side ; and if prompt steps are adopted by both Governments in co-operation, it is hoped that no serious difficulties will occur at San Francisco. 2. It will facilitate the completion of new arrangements if you can authorize this Government to act for New Zealand in adopting means to continue the temporary service within the terms of the existing contract. 3. You will oblige by informing me by telegram of your wishes on receipt of this letter. I have, &c, The Hon. the Colonial Secretary, New Zealand. Henby Paekes. P.S.—lt is intended to despatch the mails as usual from Sydney on the 29th, under any circumstances. If by any untoward circumstance the New Zealand mails cannot be forwarded to Kandavau, and a telegram reaches Sydney in time, we will send boat of the 29th to meet them at Auckland; but we earnestly hope this'necessity will be avoided. ♦

No. 54. The Hon. 11. Parkes to the Hon. the Colonial Secretary, New Zealand. Srn, — Colonial Secretary's Office, Sydney, 11th August, 1874. I have the honor to enclose copy of a letter I have just received from Mr. J. B. Watt, of the firm of Gilchrist, Watt, and Co., of this city, who are the authorized agents for the owners of the s.s. " Cyphrenes." If the Australasian Steam Navigation Company take over the temporary contract, it is assumed that they will charter the " Cyphrenes." I have, &c., The Hon. the Colonial Secretary, New Zealand. Henry Parkes.

Enclosure in No. 54. Mr. J. B. Watt to the Hon. H. Paekes. My dear Mr. Parkes, — Sydney, 11th August, 1874. If the Government of New South Wales or of New Zealand guarantee the payment to "Cyphrcnes" of mail money, £1,150 16s. lid., the "Cyphrenes" will proceed from Auckland down the New Zealand coast to Port Chalmci's with the mails; and on being paid, as promised, by cither Government, the sum due in respect of the outward mail, £1,150 lGs. 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 "Macgregor," and come here with them; "Macgregor" proceeding to New Zealand with the mails. More than this the " Cyphrenes" cannot do without coming here for an overhaul. I have, &c, Hon. H. Parkes, Sydney. John B. Watt. P.S.—This would insure payment to " Cyphrenes " of the two payments due in respect of the outward and inward mails conveyed by her; and under the charter she is entitled to be paid these amounts by the Government.

No. 55. The Hon. J. Vogel to Dr. Featherston. (Telegram.) "Wellington, 31st August, 1874. I'Visco Service. —Eussell goes to Sydney middle September ; authorized by Government. Put yourself in communication with him. Let him know possibilities of new service.

No. 56. The Hon. Saijl Samuel to the Hon. J. Vogel. (Telegram.) Sydney, 27th August, 1874. Owners telegraph through their agents, Gilchrist, Watt, and Co., that they have directed " Macgregor" to proceed from San Francisco to Kandavau, Auckland, and Sydney, relying upon this and New Zealand Government paying subsidy for the trip. This Government will pay its portion. " Macgregor" left Frisco 17th instant.

No. 57. The Hon. J. Vogel to Mr. Eussell. (Telegram.) Wellington, 4th .September, 1874. Hate received the appended telegram from Samuel. "What answer do you advise ?

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