33

F.—3

Enclosure 5 in No. 73. Messrs. Laweence, Clack, and Co. to the Agent-Geneeal for New South Wales. Windsor Chambers, Great St. Helen's, London, E.C., Sib,— 3rd August, 1874. Confirming our respects of Saturday afternoon to Captain Jopp, we now beg to inform you that we have to-day sent the following telegram to the Postmaster-General, Sydney, viz.:— " Unless Governments guarantee us all subsidies, owners withdraw steamers Frisco, and service stops. Telegraph Cowper immediately." We shall be obliged if you telegraph to your Government in confirmation of this. We have done everything in our power in order to uphold the service. We are willing still to do so if we can be secured, but we will not keep the steamers on at our own risk. Mr. Forbes, as you heard from his son, has absconded without making provision to carry out his contract or pay his debts, and the time has now arrived for the Government to take some decided step for the maintenance or discontinuance of the service. We have, &c, Agent-General for New South Wales. Laweence, Clack, and Co.

Enclosure 6 in No. 73. Mr. Maeshall to Mr. Mackeell. Eoyal Mail Steam Packet Company, 55, Moorgate Street, London, My Deae Sib,— Ist August, 1874. I am sorry to hear that you have doubts of being able to carry out the New Zealand scheme. There is not the slightest chance of this Company taking it up in any case ; but I should think, if the terms of the contract were modified as you hint at, others might bo induced to go into it, but the present is not the best time, I fear, for carrying out such enterprise. If you think I can assist you further, I shall be happy to do so. I have, &c, James Mackrell, Esq. Bobt. Maeshall.

No. 74. Tho A gent-General to the Hon. J. Vogel. 7, Westminster Chambers, Victoria Street, Westminster, 8.W., Sib,— 30th October, 1874. After tho despatch of my letter of the 7th August, with reference to the San Francisco mail service, a certain period of time elapsed in which it seemed very doubtful whether any satisfactory arrangements could be made for the continuation of the temporary service ; and when your telegram, which I received, and of which I acknowledged the receipt on the 27th of that month, reached my hands, directing me, pending tho conference proposed to be held in Sydney in September, to send all mails by way of Suez and Melbourne, I felt that, until your further decision reached me, I should best observe the indication which that telegram conveyed of your policy by abstaining from any 4 action on this side. I accordingly requested the Postmaster-General, as you have been already informed, to notify to the public that the New Zealand mails would not for the present be sent by the San Francisco route. 2. On the 9th of September I received your telegram informing me that Mr. Russell was about to proceed to Sydney under authority from the Government, and directing me to place myself in communication with him as to the possibilities of a new service. Information which I had received led mo to believe that the Pacific Steam Navigation Company was not indisposed to undertake the service, and on the day after I received your telegram I proceeded to Liverpool to communicate with some leading members of its direction. I also informed the Agent-General for New South Wales of the purport of your telegram, and of my willingness to co-operate with him in procuring information, and, if possible, tenders for the proposed conference. 3. I found on the part of the Pacific Company at first a great willingness to enter upon the service. Indeed the inducements to their doing so are not inconsiderable, if I am, as I believe I am, correctly informed that eleven of their large steamers are now laid up, there being no profitable employment for them, at a yearly loss of, including interest, £120,000. But as negotiations proceeded, an increasing difficulty in obtaining any definite proposal upon their part made itself manifest; and this I have reason to suppose is due to an adverse influence applied by interested parties, who are said to have considerable weight in their councils. During the week following my visit to Liverpool, I had expected that Mr. Just, of that company, would have called upon me to communicate their views at large, but finding that he did not, I telegraphed on the 23rd of September, in the terms of which I enclose a copy. I received, on the 25th and the 30th, the letters in reply, of which I also enclose copies, by which the Pacific Company absolutely decline to offer any tender. 4. Communications opened with the North German Lloyds' Company had meantime led to a more definite result, and on the 29th of September I received, through the hands of Mr. Leslie C. Hawks, who was authorized to represent the company, the tender of which I have already telegraphed the substance to Sydney, and of which I now enclose a copy. 5. This tender of the North German Lloyds' is, so far, the only actual tender which I or the Agent-General for New South Wales have received from any company or person ; but several inquiries have been made by persons who intimated their willingness to undertake the service, and to tender for 5—F. 3.