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■would not, in my opinion, make a larger allowance of postages, since whatever is done with one route they insist should apply to all. I think that the Colonial Governments should strongly urge on the United States Government to contribute towards the cost of the subsidy to the New Zealand and Australian Californian service, but I cannot give you authority to make any representations of the kind. Your instructions will have to come direct. I will forward a copy of the correspondence to the Government. I have, &c, Julius Yogel, it. J. Creighton, Esq., Agent-General for New Zealand. San Francisco.

Enclosure 3 in No. 5. The Hon. H. D. Money, to Mr. R. J. Creighton. House of Representatives, Dear Sir,— Washington, D.C, 7th May, 1880. Your letter of date April 25th was received yesterday most opportunely. The Post Office appropriation for the next fiscal year was pending. I conferred with Hon. Horace Davis, and showed him your letter, and we agreed that he shonld offer an amendment to the pending Bill, giving a discretion to the Postmaster-General the authority to remit the cost of transportation across the continent of the British and Australian closed mail, or so much as he should think just. Mr. Davis managed the matter with great address; he prevailed upon the Committee in charge of the Bill to accept the amendment, and then in a short speech placed very forcibly and clearly before the House the value of the relation between the United States and the Colony, &c. The matter is now with the PostmasterGeneral, and I shall endeavour to have him act as soon and as favourably as possible, and feel sure that Ms inclination is to do what is just and proper. I have, &c, Mr. Robert Creighton, H. D. Money. Postal Agent, New Zealand Government, San Francisco, Cal.

Enclosure 4 in No. 5. Mr. R. J. Creighton, to the Hon. H. D. Mosey. Dear Sir,— San Francisco, 20th May, 1880. I read your letter of 7th May with great pleasure and interest, and have to thank you, on behalf of the contracting colonies, for the prompt and successful action you took in obtaining Congressional sanction to an abatement of the transit charges on enclosed British and Australian mails. I have, of course, since learned the ultimate result, which is as gratifying as it has been in degree surprising to me. I trust that the Hon. Mr. Key, before leaving office, will have finished this business, which he so fully understands, and in which he lias manifested such great interest. If not, I must further trespass upon your kindness to have it brought to a satisfactory conclusion. I have no doubt the action of Congress, in sanctioning the clause in the Post Office Appropriation Bill, proposed at j rour suggestion by Hon. Horace Davis, will have the best possible effect in promoting commercial intercourse between Australasia and the United States. The last steamer from the colonies brought up 300 passengers, of whom 200 were in the saloon. Of course this included Honolulu passengers, but the greater proportion was from the colonies. I apprised the New Zealand Government by telegraph of the vote in the Senate. I have, <fee, Hon. H. D. Money, Robt. J. Creighton, Chairman Postal Committee, &c, Resident Agent New Zealand Government. Washington, D.C.

Enclosure 5 in No. 5. The Hon. Horace Davis, to Mr. R. J. Ceeighton, Dear Sik, —. House of Representatives, "Washington, 11th May, 1880. Your telegram of 7th May, congratulating me on the success of the amendment to the Post Office Appropriation Bill respecting the transit of the New Zealand mails, reached me duly. I telegraphed you in reply that the Bill had passed the House, and that Senator Booth thought the amendment had nothing to fear in the Senate. I have this day given him a memorandum of the facts in the case, and he -will defend it if necessary. You may congratulate yourself upon the success of the proposition, as I was entirely taken by surprise at its passage. I had prepared the way to the best of my ability, but did not think it would go through. Thanking you for your telegram, I have, &c, It. J. Creighton, Esq., Horace Davis. Office Evening Post, San Francisco, Cal.

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