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2. The Postmaster-General states that the position is still substantially the same as when the letters on the subject addressed to the Postmaster-General of New Zealand on the 28th October, 1907 [No. 7, F.-7, 1908], and tho 12th December, 191.1, copies of which are enclosed for the High Commissioner's information, were written. 3. He adds that at the time- of the institution of the Canadian magazine post the Lords Commissioners of the Treasury were reluctant to agree to the scheme, on account of its financial unsoundness and of the probability that it would be used with, effect as a precedent by advocates of cheaper newspaper rates throughout the Empire, and. indeed of cheaper rates on printed matter in the inland service of the United Kingdom, and that it was only in view of the exceptional political and geographical position of Canada that the objections of the Treasury were waived. There appears to be no such exceptional considerations in the case of New Zealand ; and as the existing rates for newspapers are unremunerative, there does not appear to him to be sufficient ground for reducing them still further to a point which would result not only in a heavy immediate sacrifice of revenue, but in a cumulative and increasing loss. 4. An extension of the magazine post to New Zealand could not, the Postmaster-General thinks, be considered as a postal concession to that Dominion only, as it would probably provoke demands, which could not consistently be resisted, not only for similar concessions in other parts of the Empire, but also for a reduction in the inland service of the United Kingdom, and ultimately for a reduction in the international rate for printed papers as well, any of which concessions would necessitate a large sacrifice of revenue. 5. The difficulties in the way of meeting the wishes of your Government are thus purely of a financial character, but that the Postmaster-General regrets he is unable to recommend His Majesty's Government to extend the magazine post to New Zealand. 6. Copies of your letter under reply and of this letter are being sent to of New Zealand. I have, &c, Henry Lambert, For the Under-Secretary of State. The Secretary, Office of the High Commissioner for New Zealand.

Sub-enclosure 1 to Enclosure 1 in No. 7. [See No. 7, F.-7, 1908.]

Sub-enclosure 2 to Enclosure 1 in No. 7. The Eight Hon. the Postmaster-General, London, to the Hon. the Postmaster-General, Wellington. Dear Sir, — General Post Office, London, 12th December, 1911. I duly received your letter of the 24th October last [No. 23, F.-7, 1912] renewing the suggestion that the rate of postage on newspapers and periodicals sent from the United Kingdom to New Zealand should be reduced to Id. per pound, as was done in the case of newspapers and sent from the United Kingdom to Canada and Newfoundland. As you are aware, the circumstances which led to the establishment of the magazine post to Canada and Newfoundland were quite exceptional, and were such as to outweigh purely financial considerations. No similar conditions obtain in any other part of the Empire, and in this respect New Zealand is in the same position as the other self-governing Dominions. It would not be feasible further to extend the low magazine rate of postage without making it universal throughout the Empire, and I should not feel justified in recommending to His M'ajcsty's Government the considerable sacrifice of revenue which would be involved. I regret therefore that lam still unable to meet the wishes of New Zealand in this matter. You will have observed, 1 hopejwith satisfaction, the large reductions of cable rates for Press and other plain-language telegrams of a non-urgent character between New Zealand and the United Kingdom, which, as I foreshadowed at the imperial Conference, I have now been able to arrange. I have, &c, The Eight Hon. Sir J. G. Ward, P.C., K.C.M.G. H. Samuel.

Enclosure 2 in No. 7. The Secretary to the High Commissioner to the Under-Secb,etary op State, Colonial Office. Sir,— 13 Victoria Street, S.W., 27th November, 1914. I am directed by the High Commissioner to acknowledge the receipt of your letter of the 24th instant, and to state that it is with extreme regret he learns that the British Government will not depart from its original decision in reference to giving the Dominions and the Mother-country the benefit of cheaper postal rates on magazines and newspapers, especially on the latter, as of magazines could, in the meantime, be left in abeyance.