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No. 50. The Superintendent of Foreign Mails, Washington, to the Hon. the Postmaster-General, Wellington. Sib, — Office of Foreign Mails, Washington, D.C., 9th January, 1891. " I have the honour, by the direction of the Postmaster-General, to acknowledge the receipt of your letter of the 28th November last, advising this department that your Administration has arranged for the continuance of the San Francisco mail-service for another twelve months, under which arrangement all contributions from the United States and from non-contracting colonies are to be retained by or paid over to the contractors for their sole benefit; and inquiring if the amount to be paid by this department will include payment for the sea-conveyance on correspondence from Canada and other places sent in transit through the United States. In reply, I have to inform you that, pursuant to the statement in this department's letter to Mr. E. J. Creighton, dated the 19th July last, the Postmaster-General has to-day made an order, a copy of which is enclosed herewith, authorising the payment of $60,000 annually to the Oceanic Steamship Company as full compensation for the sea conveyance of the mails in question, in the manner and subject to the conditions therein prescribed ; the annual period referred to in said order to commence with the sailing of the Oceanic Steamship Company's vessel scheduled to leave San Francisco for Auckland and Sydney on the 10th of the current month. The payment of $60,000 per annum will be in full compensation for the sea-conveyance of all articles—wherever posted—which may be included in the mails made up in this country, and despatched by said steamers, but not for the conveyance of any closed mails made up in Canada or any other foreign country. The records of this department do not show that any closed mails (other than those originating in Great Britain) have been conveyed to. New Zealand by the steamers in question. Should any such be despatched hereafter, your Administration should arrange with the countries of origin of said mails for the payment of any transit-charges in favour of your Administration to which they might give rise. I am, &c, The Postmaster-General, N. M. Brooks, Wellington, New Zealand, Superintendent of Foreign Mails.

Enclosure in No. 50. Copy of Obdbr by United States Post Office for Payment of §60,000 to Oceanic Steamship Company. Under and in accordance with the provisions of sections 4009, 4010, and 4011 of the Revised Statutes of the United States (which are here referred to), it is hereby ordered that, subject to the provisions and conditions hereinafter contained, the sum of $60,000 per annum shall be allowed and paid to the Oceanic Steamship Company of the City of San Francisco, State of California, as full compensation for the services rendered by said company in transporting, by its steamers sailing from San Francisco to New Zealand and New South Wales via Honolulu, all mails made up in the United States destined for the Hawaiian Kingdom, the Australasian Colonies and New Caledonia, and other islands in the Pacific Ocean. Payment to be made quarterly, at the rate of $15,000 per quarter : Provided the mails are conveyed in steamers of United States build and register, and that if in any case a foreign-built steamer shall perform the service herein referred to, then the sum allowed said foreign steamer shall be $1,000 less than would be allowed to a steamer of United States build and register for the same service, or in that proportion for any service : Provided further that said company shall despatch a steamer at intervals of about four weeks, making thirteen despatches in twelve months; and that if less than thirteen despatches occur during twelve months, then the amount herein ordered to be paid annually to said company shall be reduced one-thirteenth part of said amount for each and every despatch less than thirteen : Provided further that said company shall cause the sailing of their steamers to be delayed not more than twelve hours after their advertised hour of departure, whenever such delay may be necessary, in order to receive mails to arrive at San Francisco by railway-trains from the Eastern portion of the United States; and for each and every failure to so delay a steamer when requested to do so by the Postmaster at San Francisco, then the sum of $500 shall be deducted from the amount which would otherwise be due for said steamer's services during the voyage in question. The annual payment herein provided for shall be in full compensation for services rendered by the steamers of the Oceanic Steamship Company which sail for New Zealand and New South Wales, and shall not include additional service rendered by steamers of said company that sail for the Hawaiian Kingdom only, which additional service shall be paid for at the rates of compensation at present allowed for said service. The provisions of this order shall take effect with the sailing of the Oceanic Steamship Company's vessel to sail from San Francisco for New Zealand and New South Wales on or about the 10th day of January, 1891, and shall continue in force until otherwise directed. John Wanamakee, Postmaster-General.

No. 61. Mr. Creighton to the Secretary, General Post Office, Wellington. Sir, — San Francisco, 7th February, 1891. I have the honour to acknowledge receipt of your letter of the 16th December, informing me that the " Monowai " would be the contract boat leaving San Francisco in February with the British and American mails for the Australian Colonies in place of the " Zealandia."