PAPERS RELATIVE TO

E.—No. 3

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for that of your Eesponsible Advisers, a copy of a letter which has been received from the PostmasterGeneral showing the obligations of the Company with respect to this service. I have, &c, Governor Sir George Grey, K.C.B. Caenabyon.

Enclosure in No. 4. Copy of a Letter from Mr. Scudamore to Sir F. Rogers. Sir,— General Post Office, 23rd August, 1866. I am directed by the Postmaster-General to request that you will have the goodness toinform the Earl of Carnarvon that, from statements which have appeared in the public newspapers and elsewhere on the subject of the Australian Mail Packet Service, it appears to His Grace that some misapprehension exists in the Australian Colonies respecting the obligations of the Peninsular and Oriental Steam Navigation Company under their contract for the performance of the Australian Mail Packet Service. His Grace thinks it right, therefore, to point out that, as in the case of the present contract, so in that of the contract which has just expired, the service contracted for is one between Point de Galle and Sydnev only; and that no engagement has been entered into for the delivery of the mails at intermediate ports within a fixed time. The pro forma timo table, which is prepared annually, and by which, possibly, the public in Australia have been guided in computing the number of days to be occupied on the voyage from Point de Galle to intermediate ports, is merely intended to show the day on which the packets may be generally expected to arrive at tho several ports of call; but provided that the entire voyage from Point de Galle to Sydney be performed within the time prescribed by the contract, any apparent irregularity at intermediate ports cannot be held as a breach of the Company's engagements. His Grace requests that the Earl of Carnarvon will be pleased to cause these remarks to be communicated to the Governors of the several Australian Colonies. I have, &c, Sir Frederick Rogers, Bart., Colonial Office. Frank Ives Scudamore.

No. 5. Copy of a Letter from Mr. F. Hill to the Hon. John Hall. (No. 2495.) Sir,— General Post Office, London, 22nd March, 1867. The attention of the Postmaster-General has been called to the subject of computing the proportion to be paid by each of the Australian Colonies and New Zealand of the moiety borne by the Colonies collectively of the cost of the Australian Packet Service, and it has been proposed that instead of the method at present adopted of determining the proportion upon an account taken every fourth year, it should be computed according to the actual number of letters received and despatched by each Colony year by year. The Duke of Montrose has sanctioned the adoption of this principle for the future; but as the account for each year must be prepared at the beginning of that year, it is obvious that the number of letters taken as the basis of the return must be the number received and despatched in the previous year. In order that the new arrangement may be carried out, I am to request that you will cause accounts to be forthwith taken of the numbers and weight of letters, newspapers, books, and patterns despatched from New Zealand for the United Kingdom (both by the packets proceeding from New Zealand to Melbourne, as well as by those proceeding to Sydney), via Suez, by each monthly mail, and that such accounts may be regularly forwarded to this country. A few specimens of the form in which these particulars should be inserted are enclosed. A full supply will be sent under separate cover. I am, &c., The Postmaster-General, &c, "Wellington. F. Hill.

No. 6. Copy of a Letter from the Hon. John Hall to Mr. F. Hill. (No. 2656.) 8rK ,— General Post Office, Wellington, 29th May, 1867. I have the honor to acknowledge the receipt of your letter No. 2495., of the 22nd March last, stating that it is proposed that the computation of the proportion to be paid by each of the Australian Colonies and. New Zealand towards the cost of the Australian Packet Service, should in future be based upon the actual number of letters received and despatched by each Colony year by year, instead of upon an account taken every fourth year as heretofore, and requesting to be furnished with the information necessary to carry out this arrangement. I have given directions for the required returns to be furnished to you. Owing, however, to tho number of Post Offices in New Zealand at which mails are made up for Great Britain, many of which are some considerable distance from the Central Office where these returns will be prepared, it will not be possible for them to accompany the particular mails to which they refer, but they will be sent by the mail of the ensuing month. Mr. F. Hill, Post Office, London. John Hail.