E.—No. 4c,

No. 131. Mr. Webb to the Hon. Mr. Vogel. United States, New Zealand, and Australia Mail Steamship Line Agency, Sir, — San Francisco, 2nd August, 1871. AVhen addressing you here under date of July 19th, 1871, I fully anticipated the pleasure of visiting New Zealand some time during the pending session of its Parliament. Since your departure I have decided, after mature reflection, that it is absolutely necessary for me to spend most of my time remaining before the assembling of our Congress, early iv next December, in this country. Should I leave here in September, as I intended when writing you (and I could not leave sooner), it would be impossible for me to return in time to attend upon Congress, as is necessary, and as I am advised to do. These circumstances preclude my coming, and you will therefore not expect me this year. Mr. J. B. M. Stewart, to whom I have given authority to negotiate with your Government, is fully advised in regard to measures absolutely necessary, in my opinion, to make our line work successfully, having in view the hostile attitude assumed towards it by the New South Wales Government. I have, &c, The Hon. Julius A rogel, W. H. Webb. Postmaster-General, New Zealand.

No. 132. Mr. Stewart to the Hon. Mr. Arogel. Sir, — Auckland, 7th September, 1871. Referring to our conversation relative to Mr. AVebb's views upon the subject of a permanent mail service from New Zealand to San Francisco, I have the honor to inform you, that my visit to this country is to modify the present contract, so as to enable us to compete with the opposition from Australia. The Governments of Australia have already voted £25,000 annually for the service, and it is important that we should not only bo placed in a position, so that we can remove this opposition and tender to perform the same, and secure the subsidy. As your Government participates in whatever subsidies are obtained from Australia, it will be plain to you that it is manifestly to the advantage of all concerned to grant us such modification, when we are able to bring sufficient boats from the Atlantic. From the spirit of opposition shown in Australia, it will be apparent to you, that the Colonies inhabited by two million and a half of people will not be content with a branch service, and are determined to have a service terminating there. While the contractors are well aware of their obligation to your Government to carry out the contract intact, beg to state that when the contract was made they were of opinion that Australia would be content with a branch service via Auckland; now that this anticipation has failed, they deem it advisable to ask you for such modification as will harmonize with the views of other Colonies, and prove materially beneficial, as well to your Government as to the contractors. I have, &c, The Hon. Julius A Togel, J. B. M. Stewart, Postmaster-General, &c, &c. (for the U.S., N.Z., and A.M.S.S. Line.)

No. 133. The Hon. Mr. Vogel to Mr. Webb. General Post Office, New Zealand, Wellington, Sir,— 30th September, 1871. I have the honor to acknowledge the receipt of your letter of 2nd August, in which you state that you are unable to visit New Zealand this year ; and that Mr. Stewart is fully advised in regard to the changes which are necessary, in your opinion, to make the U.S., N.Z., and A.M.S.S. Line successful. In reply I have the honor to state, that Mr. Stewart, on his arrival here, applied for permission to run the boats, for four trips, from Auckland to Sydney, on account of your not having sufficient vessels at present available to carry out the Mail Service between San Francisco and New Zealand and Australia, as contracted for. That permission was given.

FURTHER PAPERS RELATIVE TO THE SAN FRANCISCO MAIL SERVICE.