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For the service you now ask we shall require a subsidy of £4,000 per annum, besides payment, at a rate to be arranged, for detention of coastal steamers at all times when delayed waiting for mails. I have, &c, James Mills, Managing Director. W. Gray, Esq., Secretary, General Post Office, Wellington.

No 22. The Managing Director, Union Steam Ship Company, to the Secretary, General Post Office, Wellington. Union Steam Ship Company of New Zealand (Limited), Sir,— Wellington, 3rd June, 1899, As the result of communications with you, I am agreeable to amend the terms of our offer of 26th April for the coastal collection and distribution of the San Francisco mail as follows : Subsidy to be £3,500 per annum; inward mails to be brought to Wellington vid New Plymouth by steamers leaving Onehunga on Monday or Thursday, or to New Plymouth only by steamer leaving on Wednesday; outward mails to be despatched from Wellington on Saturday by steamer calling at New Plymouth Sunday. In the event of the Monday or Thursday's steamer from Onehunga being detained after her advertised hours of sailing £50 demurrage to be paid for first twenty-four hours, and a proportionate amount for any time beyond twenty-four hours. ■■: I have, &c, James Mills, Managing Director. W. Gray, Esq., Secretary, General Post Office, Wellington.

No. 23. The Secretary, General Post Office, Wellington, to the Managing Director, Union Steam Ship Company, Dunedin. Sir,— General Post Office, Wellington, Ist July, 1899. I have the honour to inform you that your amended offer of the 3rd ultimo for the coastal collection and distribution of the San Francisco mail has been submitted to the Postmaster-General, who directs me to inform you that the offer is accepted on the following conditions:— 1. That the steamers leave the Manukau so soon as the San Francisco mails are shipped—■ weather, tide, and bar being suitable. "\j; ,2. That the mails conveyed from Manukau by your company's steamers are to be brought on by them to Wellington; the detention at New Plymouth en route not to exceed three hours. 3. That when the inward mails arrive at Auckland on a Wednesday, they are to be forwarded by the Northern Company's steamer leaving that day, for transfer to the train at New Plymouth the following morning—either the ordinary through train or a special. 4. That for detaining the steamer at Manukau, when necessary, for inward mails, a demurragepayment of £50 for the first twenty-four hours, and a proportionate payment for any detention over the twenty-four hours, to be made. 5. That there be a steamer at Wellington to take on the inward mails to Lyttelton without delay. 6. That it is to be understood that the due day of departure from the Manukau with the inward mail is Tuesday; that the day of departure outward from Lyttelton is Friday evening, after the arrival of the express-train from Dunedin ; from Wellington, on Saturday afternoon or evening; and New Plymouth, Sunday ; and the arrival at Manukau early on Monday morning. 7. That should the time-table be altered enabling steamers to connect at New Plymouth with the through trains to and from Wellington, the question of subsidy to be reconsidered. 8. That the service cover thirteen voyages each way within the twelve months, dating from the departure of the steamer from Manukau on the 12th April last, and from Lyttelton on the 14th April. 9. Payment to be £3,500 for the twelve months, plus one-thirteenth of £500 for each occasion on which the steamer is required to leave the Manukau with the mails on a Tuesday. I have, &c, W. Gray, Secretary. The Managing Director, Union Steam Ship Company of New Zealand (Limited) * Dunedin.

No. 24. The Managing Director, Union Steam Ship Company, Dunedin, to the Secretary, General Post Office, Wellington. Union Steam Ship Company of New Zealand (Limited), Sir,— Dunedin, 7th July, 1899. I have to acknowledge receipt of your favour of the Ist instant dealing with distribution of San Francisco mail, which has our attention, and to which an answer will be furnished later. I have, &c, W. Gray, Esq., Secretary, General Post Office, Wellington. C. Holdsworth Approximate Cost of Paper.— Preparation, not given; printing (1,425 copies), £i 14s.

Price 6d.] By Authority: John Mackay, Government Printer, Wellington.—lB99.