23

F.—6

The inequality of this arrangement, by which the burden of payment is thrown upon New Zealand and New South Wales, while the United States enjoyed the greater measure of postal and commercial advantages, has long been felt as a grievance by the colonists, and the refusal of New South Wales to renew or extend the contract is no doubt attributable to that feeling. The Postmaster-General of New South Wales, in a published document, recently voiced public opinion in Australia, when he called attention to the parsimonious policy of the United States, which wa"s sacrificing its trade with Australia by depending upon the bounty of the colonies for its postal and passenger facilities. The absolute withdrawal of New South Wales will put the United States out of direct touch with Australian trade, which aggregated last year $648,000,000, unless an assurance can be given to the New Zealand Government that the Washington Post Office Department will at least guarantee an equivalent to that now paid by New South Wales. Of course it is not for me to suggest how this should be done, but I might be permitted to say that, in the absence of a specific appropriation for the service, the Tonnage Bill now before Congress would suffice for that purpose if it becomes a law. Unless I can promptly give my Government an assurance of substantial aid from the United States as herein expressed, I am fully convinced that New Zealand will also abandon the American postal route to England, and thus terminate direct intercourse with this country. Awaiting your reply, I remain, &c, Bobt. J. Ceeighton, Agent, New Zealand Government. Hon. N. M. Brooks, Superintendent of Foreign Mails, Washington, D.C.

DIEECT MAIL-SEE VICE.

No. 74. Mr. Geay to the Chaieman of the Boaed of Dieectoes, New Zealand Shipping Company (Bimitecl), Christchurch. Sib,— General Post Office, Wellington, 16th September, 1889. I have the honour, by direction of the Postmaster-General, to invite your attention to the enclosed copy of resolutions agreed to by the House of Eepresentatives on Friday morning last, authorising the Government to make temporary provision for the continuance of the San Francisco and Direct four-weekly mail-services, and to arrange with your company for a renewal of your contract for twelve months at a cost not to exceed £17,500. The payment is based on a calculation that the cost for carriage of mails will amount to £12,000 and £5,500 for bonus, bonus-payments, you will observe, being limited to forty-eight hours on any voyage. In other matters the terms and conditions of the existing contract are to be given effect to. The Postmaster-General will be glad if you will give the question early consideration, and favour him with any decision your Board may come to. I am to point out that the present contract terminates with the despatch from New Zealand on the 12th December next, and from Plymouth on the 14th idem. The new contract should be signed in sufficient time to allow of the public at Home and in the colony being given ample notice of the renewal of the service for another year. I have, &c, . W. Geay, Secretary. The Chairman, Board of Directors, New Zealand Shipping Company (Bimited), Christchurch.

Enclosure in No. 74. Besolutions re Ocean Mail-seevices. (1.) That, in view of the expiration of the ocean mail-service contracts in November and December next, it is desirable to make further provision for the conveyance of mails fortnightly between the colony and Great Britain at a total cost not exceeding £28,750. (2.) That, in order to give further time for the development of the proposed Vancouver Pacific service, the Government be authorised to arrange for a renewal of the present services via San Brancisco and by Direct steamer for a period of twelve months. (3.) That the Government, therefore, enter into negotiations— (a.) For joining New South Wales in the renewal of the San Francisco service for twelve months under the following conditions : That the payment to be made shall not exceed £11,250 (exclusive of the cost of interprovincial service, &c, and payment on account of light clues). That the steamers call at Auckland, as at present, and that the time allowed between Auckland and San Francisco shall not exceed tweniy clays either way. That bonus shall not be payable for early arrival; and that penalties, at the rate of £4 per hour, shall not be enforced, except when the late delivery of mails exceeds forty-eight hours on any voyage. That New South Wales shall receive and retain all sums recovered by way of penalties for late arrival, and pay all amounts in respect of