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No. 4, The Secretaby, General Post Office, Wellington, to Messrs. Henderson and Macfarlane, Auckland. (Telegram.) Wellington, 24th July, 1901. A Press telegram from Sydney, published in Neiv Zealand Times yesterday, referring to the statement made at Auckland that Messrs. Spreckels's steamers are bound to call at Auckland, alleges, on the authority of Messrs. Spreckels's Sydney managing agent, that the steamers are not bound to call at your port, as there is a clause in the contract giving the company the right not to call at a New Zealand port if they so wish. Are you able to confirm this ? We have always understood that under their contract with the United States Post Office Messrs. Spreckels are required to call at Auckland.

No. 5. Messrs. Henderson and Macfaelanb, Auckland, to the Secretary, General Post Office, Wellington. (Telegram.) Auckland, 24th July, 1901. Have no copy of contract. Herald leader states this morning Mr. Spreckels plainly stated that contract with American Government included Auckland outward trip, only leaving it optional on return trip. Think Sydney agents refer to return trip. Think Union Company, Dunedin, has copy existing contract.

No. 6. The Secretary, General Post Office, Wellington, to Messrs. Henderson and Macfarlane, Auckland. (Telegram ) Wellington, 24th July, 1901. Thanks for telegram. If the Sydney agents really meant what you suggest, it is a pity they expressed themselves so indefinitely. lam aware that Spreckels's contract with the United States Post Office does not cover the running on the return voyage from Sydney to Frisco ; indeed, the Washington Post Office [No. 108, F.-6, 1901] has already intimated to us that while Messrs. Spreckels are at liberty to enter into a contract with New Zealand with respect to the conveyance of the Homeward mails, the firm has no authority for making any arrangement affecting the inward service—that is, from San Francisco. Messrs. Spreckels, however, have declined to enter into any contract with us until such time as they have had practical experience of the capabilities and possibilities of the new steamers and the service.

No. 7. Messrs. Henderson and Macfaelane, Auckland, to the Secretary, General Post Office, Wellington. Oceanic Steamship Company (American and Australian Line), Sib,— Auckland, 25th July, 1901. We have the honour to acknowledge receipt of your letter of the 22nd instant [not printed], and telegram of the 24th instant, also of the vouchers calling for payment of mail-moneys for five trips of Oceanic steamers, for which we thank you. In reply to your other telegram of the 24th, requesting to know whether we had copy of the contract between the Oceanic Steamship Company and the United States Government, we replied in the negative, and referred to a leader which appeared in the Auckland Herald of yesterday's date stating that when Mr. Spreckels was here he plainly announced that under the present contract Auckland was only obligatory as a port of call on the trip from San Francisco, leaving it optional on the return trip. We also informed you that the Union Steam Ship Company were likely to have a copy of the contract. We might add that no official information has reached us from headquarters regarding a change of route, as hinted in a recent cable from Brisbane, Q., but are inclined to think that, should a subsidy be granted to any other trans-Pacific company, the United States Government might naturally agree to allow a substituted port of call in lieu of Auckland. Any reliable information that may reach us bearing directly on this point we will pass on to you. Yours, &c, The Secretary, General Post Office, Wellington. Henderson and Macfarlane.

No. 8. The Secretary, General Post Office, Wellington, to the Deputy Postmaster - General, Melbourne. Sir,— General Post Office, Wellington, 27th July, 1901. I have the honour to inform you that, as the contract between this Department and the Union Steam Ship Company of New Zealand (Limited) for the performance of the San Francisco mail-service has terminated, the arrangement under which New Zealand collected from noncontracting States the poundag6-rates for the carriage of their mails by that route will cease as from the 30th ultimo. All moneys due by the non-contracting States from the commencement of