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We also advised that you should continue the present date, till you received tho letters we were respectively writing by this mail. My object in agreeing to this part of the telegram was to enable me to lay before you the circumstances, leaving you to judge the course to be adopted. It is not certain that the new arrangement made by the Post Office will continue. The two fastest lines have refused to come -under it. Of the three lines;accepted by the Post Office, we considered the Guion the slowest, and therefore we advised the Post Office to adopt the Cunard in preference for January. Ido not think it will involve more delay, if any, than might have resulted from employing the Guion line. As it is proposed to make arrangements here only from month to month for the American service, any times you may fix for the vessels leaving San Francisco will be liable to disturbance by alterations here. I think, however, the difficulty is more nominal than real, inasmuch as vessels leaving on the same days in the week are likely to be employed here month after month. In deciding upon the days the vessels are to leave San Francisco, you will have to consider by what line you desire the mails to leave London. Supposing any fast lines come in under the arrangement during the next two months, I will telegraph yon. If there is no change, you will have to decide between the lines as described in Mr. Tilley's circular letter of the Bth December. lam of opinion that the Cuuard is the best, and the North German the next best. It has been represented to me that the mercantile community here has the strongest objection to the mails being made up on Saturdayevening, on account of its leading to heavy work on that day, which is generally observed as a whole or half holiday. I am told that if Saturday be the day appointed, the service will be unpopular with the commercial classes. It is for you to judge the force of this objection. An important point to be observed is to give Sufficient time here to answer letters. The present interval between the arrival and departure of the San Francisco mails in London is not too long, and should not be shortened. On the other hand, the interval in the colony between the arrival and departure is also not too long. Another very important point is the relation which the time of departure of the San Francisco mail bears to that by Southampton and Suez. lam of opinion that the Colonies of New Zealand and New South Wales would lose a considerable amount if the San Francisco mail were to leave London before the Southampton mail. The same day, or two or three days after, would probably secure to the colonies interested the use by the public of the Sau Francisco in preference to the Southampton mails. I need hardly observe that the loss I allude to arises in this way, that whilst the postal receipts by San Francisco are purely a gain to the two colonies, those by Suez are more than covered by payments which have to be made in proportion to the correspondence sent by that route. If you wish me to exercise any discretion in respect to fixing or altering times, you must give me a power of delegation under the contract. lam far from recommending such a course. As the colonies pay for the mail service, they should, I think, decide upon the time table. Still it would be well you should give me any power that the Government of New South AVales give to their Agent-General. I have, <fee, The Hon. the Postmaster-General, Wellington. Julius Vogel.

Enclosure 1 in No. 159. Mr. Tilley to the Agent-Geneeal. Sic,— General Post Office, London, Bth December, 1876. I am directed by the Postmaster-General to acquaint you that all the contracts now in force for the conveyance of mails from the United Kingdom to the United States of America will terminate on the 31st of this month. Thenceforward mails will be forwarded by such steam vessels as are tendered by their owners month by month for the mail service, and are accepted by the Postmaster-General. The following table shows the dates upon which mails will be made up in London and forwarded to New York during tho month of January next.

The arrangements made for the conveyance of mails in subsequent months will be communicated to you in due course. I have, <fee, The Agent-General for New Zealand, London, John Tilley,

Day of the Week. Day of the Mouth. Port of Embarkation. By what Line of Steamers. iWsday (Morning) Vednesday (Evening)... Saturday (Evening) (Morning) Vednesday (Evening)... Saturday (Evening) Tuesday (Morning) Vednesday (Evening) Saturday (Evening) Tuesday (Morning) Vednesday (Evening)... Saturday (Evening) Tuesday (Morning) Vednesday (Evening)... January 2 6 9 „ 10 „ 13 „ 16 „ 17 „ 20 „ 23 » 24 » 27 „ 30 „ 31 Southampton ... Queenstown ... Southampton ... Queenstown ... „ Southampton ... Queenstown ... North German Lloyd. Guion. Cunard. North German Lloyd. Guion. Cunard. North German Lloyd. Guion. Cunard. North German Lloyd. Guion. Cunard. North German Lloyd. Guion. ii •.. Southampton ... Queenstown ... „ Southampton ... Queenstown ...

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