TO THE GOVERNOR OE NEW ZEALAND.

37

A.—No. la.

which has been received upon the subject from the Lords Commissioners of the Treasury, enclosing one from the Postmaster-General. I have, &c, Governor Sir G. E. Bowen, G.C.M.G. GRANVILLE.

Enclosure in No. 56. Mr. Stansfeld to Sir F. Eogees. Sic,— Treasury Chambers, 2Gth May, 1870. I am directed by the Lords Commissioners of Her Majesty's Treasury to transmit to you the enclosed copy of a letter from the Postmaster-General, relating to the contract recently concluded by the Government of New Zealand with the United States Consul in Sydney, New South Wales, for the conveyance of mails once a month between Sydney, Auckland, and San Francisco ; and I am to request that, in laying the same before Earl Granville, you will state to His Lordship that my Lords, concurring in the observations contained therein, request that they may be communicated to the Government of New Zealand, with reference to the contract which has been concluded by that Government for the conveyance of mails once a month between the places above mentioned. I am to add that my Lords have caused a warrant to be issued, directing that on and from the date thereof, the several rates of postage and regulations now in force applicable to letters, and packets consisting of British, Colonial, or Foreign newspapers, of books, publications, or works of literature or art, or printed Votes or Proceedings of the Imperial Parliament or the Colonial Legislatures, or of patterns or samples of merchandise posted in or passing in transit through the United Kingdom, and transmitted by the post from the United Kingdom to New Zealand or Australia, by British packet boat via Southampton and Suez, shall be chargeable upon and applicable to letters and packets of a like description posted in or passing in transit through the United. Kingdom, and transmitted by post from the United Kingdom to New Zealand or Australia via the United States, the sea conveyance from the United Kingdom to the United States being by British packet boat, and from the United States to New Zeaiand and Australia being by Colonial packet boat. I have, &c, Sir F. Eogers, Bart., &c. James Stansfeld.

Sub-Enclosure to Enclosure in No. 56. Lord Haetington to the Loeds Commissionees of the Treasury. My Lords,— General Post Office, 11th May, IS7O. I have the honor to transmit to your Lordships the copy of a letter from the Colonial Office and of its enclosures, reporting that a contract has been concluded by the Government of New Zealand with the United States Consul in Sydney, New South Wales, for the conveyance of mails once a month between Sydney, Auckland, and San Francisco. The Postmaster-General of New Zealand expresses a hope that, considering the importance of this mail service, the Imperial Government will grant to it the same allowances and privilege in postage which they granted to the former service between Panama and New Zealand, or make some substantial contribution to the subsidy. When the mail service via Panama was established by the Government of New Zealand, your Lordship consented to forego all claim to a share of the sea postage, although the conveyance of the New Zealand Mails between Southampton and Colon was effected by means of steam vessels subsidized by the Imperial Government. In that case, however, the subsidy paid was a fixed annual sum, and no additional payment had to be made in consequence of the New Zealand Mails being so forwarded. But the transmission of these mails by way of the United States will take place under very different circumstances. One of the lines of packets by which a large portion of tho correspondence is weekly forwarded to the United States is provided under a contract according to which a payment is made for every ounce of letters and every pound of printed papers carried; and in addition to this, transit rates must be paid to the United States Post Office for the territorial conveyance through the United States of the whole of the letters and printed papers contained in mails for New Zealand sent by that route. As respects the mails in the opposite direction, they are all carried by mail packets maintained at the expense of the United States Post Office, and credit must be given by this office to the United States Post Office, not only for the territorial transit postage, but also for the sea postage from New York to this country. It is proposed by the New Zealand Government that the correspondence sent by this route shall be charged with postage at the same rates as if forwarded via Southampton and Suez, viz. : — For letters, 6d. per half-ounce. Newspapers, Id. each up to the weight of 4 ounces. Books, Id., when not exceeding 1 ounce ; 2d. from 1 to 2 ounces, and patterns, 4d. from 2 to 4 ounces; and although these rates, as respects newspapers, books, and patterns will not be sufficiently high to provide for their carriage to New York and their transit through the United States, yet looking at the strong objections expressed by the Governments of New Zealand and the Australian Colonies some years ago when it was proposed to increase the charge on printed papers sent from the United Kingdom, lam not prepared to recommend any addition at the present time. But if these rates are to be maintained, it must be on the distinct understanding that the Government of New Zealand will repay this Department for any outlay it incurs in the transmission of the mails. The rate of Gd. per half ounce to be levied here on the letters despatched, will if retained by this office, provide for their conveyance as far as San Francisco, and for the conveyance from San Francisco to England of the letters sent in the opposite direction, on which nothing will be collected here. The proposed rates on newspapers, books, and patterns despatched from this country will simply provide for their conveyance as far as New York. 10