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No. 12. The Seceetaby, General Post Office, Wellington, co the Depute Postmasteb-Genebal, Sydney. (Telegram.) Wellington, 20th September, 1901. Fe'isco service: Have Messrs. Spreckels made any proposal to your Department or to Federal Government to subsidise service ? If so, could you inform me nature of proposals, and whether likely to be entertained? For your information, I may say that Messrs. Spreckels have proposed to enter into a five-years contract with New Zealand for an annual subsidy of between twenty-six thousand and twenty-seven thousand. This has been declined, and Government submitted reduced offer, which in turn was declined by Spreckels. In view of early discussion of question by our House of Bepresentatives, would be glad to hear from you as to position of service with regard to your State or the Commonwealth.

No. 13. The Deputy Postmastee-Genebal, Sydney, to the Seceetaey, General Post Office, Wellington. (Telegram.) Sydney, 21st September, 1901. Youe cable of yesterday re Frisco service : I have repeated to Postmaster-General in Melbourne.

No. 14. The Peesident, Progressive Liberal Association, Christchurch, to the Hon. the PostmasteeGenebal, Wellington. Sib, — Progressive Liberal Association, Christchurch, 25th September, 1901. The committee of management of the Progressive Liberal Association have instructed me to send you the following resolution : " That, in view of the American navigation laws which unduly favour America to the detriment of New Zealand trade, the Progressive Liberal Association strongly urges that the Postmaster-General decline to subsidise in any form the Spreckels Company's steamers." I have, &c, The Hon. the Postmaster-General, Wellington. F. S. Yates, President.

No. 15. ' The Hon. the Peemiee to the Agent-Geneeal. (Telegram.) Wellington, 9th October, 1901. Fe'isco service: Question renewal to be submitted to House next week. Meantime instruct London Post Office forward mails as usual.

No. 16. Mr. Dunnet (Messrs. Hendebson and Macfablane), Wellington, to the Hon. the PostmasteeGeneeal, Wellington. Sib,— Wellington Club, Wellington, 14th October, 1901. I have the honour to inform you that I have cabled to Mr. J. D. Spreckels the proposals (as published) to be laid before the House of Eepresentatives in re the San Francisco mail-service, and have received a reply from him saying that he " cannot entertain the proposal." I have, &c, The Hon. the Postmaster-General, Wellington. Geo. Dunnet.

No. 17. House of Eepbesentatives : Resolutions passed Feiday, the 18th Day of Octobee, 1901. Resolved, Francisco Mail-service. 1. That, in view of the temporary agreement with the J. D. Spreckels and Bros. Company (the Oceanic Steamship Company, of San Francisco) for the performance of a three-weekly service between San Francisco and Auckland for one year expiring next month, — (a.) This House authorises the Government to enter into a contract with the said company for a renewal of the present San Francisco mail-service for a term of one year and six months, subject to the following conditions :— (b.) That the payment for the conveyance of mails from New Zealand to San Francisco shall be at the rate of 7s. 6d. per lb. for letters, Is. per lb. for books, packets, &c, and 6d. per lb. for newspapers, with a minimum of £15,000 and a maximum of £20,000 per annum ; or (c.) That, in lieu of the foregoing payments, a fixed annual subsidy of £20,000 be paid, provided that one British-owned steamer, registered in New Zealand, be employed in the service. (d.) That the time between San Francisco and Auckland shall not exceed seventeen days. (c.) That no bonus shall be paid for early arrival, and a penalty at the rate of £4 an hour shall be enforced only when late delivery exceeds forty-eight hours.