F.—6

4

following reasons would urge upon the Government the wisdom of giving to the question further consideration, with a view of providing an adequate and an up-to-date service. (2.) That the service noy proposed, which is of an inferior character, is premature until the negotiations for a first-rate service via Vancouver are concluded, and more particularly as there is now a reasonable probability of the Ship Subsidy Bill being passed next year by the l T nited States Congress, enabling the establishment of a first-rate San Francisco service. (3.) That a service between New Zealand and San Francisco should not occupy more than seventeen days, and no service that required a longer time would be satisfactory to the Dominion. (4.) That the vessels with which it is proposed to inaugurate the service are out of date and unsuitable for the anticipated traffic and mail-carriage. (5.) That Auckland being the natural commercial and geographical port of arrival and departure, no change in this respect is justifiable. [Wn.-S.F. 10/43.]

No. 4. The Right Hon. the Prime Minister to the President, Chamber of Commerce, Auckland. (Telegram.) Wellington, 30th August, 1910. I NOTE the resolutions passed by the Auckland Chamber of Commerce, and, in reply, desire to say that in passing them your Chamber has apparently overlooked the following facts: (1.) That the total amount paid for the late San Francisco service ran into between sixty-five thousand and seventy-five thousand pounds a year. (2.) On inquiry of the Union Company some time ago in connection with a proposal to establish a Han Francisco service from Auckland to San Francisco and back to Auckland and on to Sydney with fast steamers, the lowest amount it could be entertained at was between eighty thousand and one hundred thousand pounds per annum, varying between those two amounts in accordance with the class of steamers provided. That was a service from Auckland to Fiji, and thence on to San Francisco by way of Honolulu. The price asked therefore placed such a service beyond what this country is prepared to pay for at present. (•'!.) The present service is not suggested as being a first-class one, but 1 do not agree with your views regarding the two steamers that are to be employed. From what 1 know their passenger-accommodation is superior to that of any of the steamers running formerly, and they provide refrigerated oargo-spaoe, which is very important. The speed is not so great as I slimild like to see, for the reason that we arc not prepared to pay the cost that such a fast service would entail, (4.) In considering the service the important question <>f the importation of fruit from the Islands to Wellington, so as to enable it to be distributed to the southern portions of the North Island as well as to the northern portion of the South [eland, had to be provided for. Under these circumstances, as we obtain both services for a reasonable sum, 1 am of opinion that for the present it is the best that can be done, though I look forward to seeing a Vancouver service established within a reasonable period. If we cannot secure the latter service, the question of a fast and up-to-date service via San Francisco will have to I>e considered. You will recognize that in any ease we cannot pay I'm' two I'ast Pacific services, as the amount required for both would be too great. [Wn.-S.F. 10/47.]

[Read here Nob. 13, 16, 17, 18, and 19, F.-6a, 1910.] No. 5. The Secretary, General Post Office, Wellington, to the General Manager, Union Steam Ship Company. Dunedin. (Telegram.) Wellington, 30th August, 1910. IiBAviNG Auckland Saturday, 2 p.m., and arriving San Francisco Friday, 7 a.m., 492 hours 49 minutes. I will ask Sir Joseph to now announce that actual time of voyage will be 20i days. As regards 17 days mentioned by Chamber of Commerce. Auckland, Spreckels's contract time was 396 hours. Reckoning from last voyage backwards, times were exceeded on every voyage as follows, in hours: 74, 131, 112, 41, 117, 93, 26, 54, 68, 25, 39, 66, 25, 43. 42, 25, 31, 30. [Wn.-S.F. 10/52.]

No. 6. The General Manager, Union Steam Ship Company, Dunedin, to the Secretary, General Post Office, Wellington. (Telegram.) Dunedin, 31st August, 1910. TiiiiiD line our letter 26th [No. 11. F.-6a, 1910] was intended refer twenty-eight day departure, not to time of passage. Latter was set forth in time-table attached our letter 3rd instant. If you would like this point dealt with more explicitly, kindly advise. [Wn.-S.F. 10/53.]