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Enclosure 9 in No. 98. Mr. Lambton to the Manager, Australasian Steam Navigation Company, Sydney. Sir,— General Post Office, Sydney, 11th February, 1876. I am directed to acknowledge the receipt of your letter on the subject, dated the 12th ultimo; and to state that the Postmaster-General cannot accede to the claim of your Board for demurrage in respect of the detention of the Company's vessels at San Francisco while under contract for the conveyance of mails, excepting for the time the vessels were detained for mails beyond the period of twelve days from the specified date of arrival at San Francisco. I have, &c, The Manager, Australasian Steam Navigation S. H. Lambton, Company, Sydney. Secretary.

Enclosure 10 in No. 98. Mr. Williams to the Postmaster-General, Sydney. Australasian Steam Navigation Company, Sydney, Sir,— 10th February, 1876. As all the Company's efforts to effect an amicable settlement of the claim which it has upon the Government for demurrage, at San Francisco, of the steamers "Mikado" and "City of Melbourne," have proved unavailing, I am directed most respectfully to request permission to sue the Government therefor; at the same time, however, I am to assure you that this course would be extremely distasteful to the Directors, who are still prepared to abide by the sole arbitration of any gentleman whom the Government and this Company may select, and, with this view, my Directors would be glad if the Government would nominate some person for the purpose. I have, &c, Wm. Williams, The Postmaster-General, Sydney. Assistant Manager.

Enclosure 11 in No. 98. Mr. Lambton to the Manager, Australasian Steam Navigation Company, Sydney. Sir, — General Post Office, Sydney, 19th February, 1876. I am directed to acknowledge the receipt of your letter dated 10th instant, further on the subject of the claim of your Company for demurrage in respect of the detention, at San Francisco, of the steamers " Mikado " and " City of Melbourne " while under contract for the conveyance of mails to and from that port. In reply, I am to inform you that the Postmaster-General considers that the least objectionable course to be pursued is to submit the case to arbitration in the usual manner. lam to state, however, that in consenting to the proposal for arbitration, the Government must distinctly exclude the inference that the claim which has been made is in any way admitted. I have, &c, The Manager, Australasian Steam Navigation S. H. Lambton, Company, Sydney. Secretary.

Enclosure 12 in No. 98. Mr. Trouton to the Postmaster-General, Sydney. Australasian Steam Navigation Company, Sydney, Sir,— 23rd February, 1876. I have had the honor to receive your letter of the 19th instant, and beg to thank you for your acquiescence in the submission to arbitration of the Company's claim for demurrage of the steamers " City of Melbourne" and " Mikado." I am encouraged to suggest that the agency of the Chamber of Commerce be employed in this matter, as their decisions are favourably viewed by the mercantile public, and, from the arbitrators being chosen by their own body, there can be no possibility of favour being shown. I have, &c, Fred. H. Trouton, The Postmaster-General, Sydney. Manager.

Enclosure 13 in No. 98. Mr. Lambton to the Manager, Australasian Steam Navigation Company, Sydney. Sir, — General Post Office, Sydney, Bth March, 1876. I am directed to acknowledge the receipt of your letter of the 23rd ultimo, and, in reply, to inform you that the Postmaster-General has approved of your claim for demurrage of

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