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Enclosure 3 in No. 5. The Hon. Sato Samuel to the Sight Hon. the Seceetaet of State for the Colonies. My Lobd,— London, 28th October, 1873. With reference to the interview on the subject I had with your Lordship on the 14th August last, I do myself the honor to acquaint you that the Government of the Colonies of New South ' Wales and New Zealand, with the view of establishing steam postal communication with Great Britain by way of San Francisco, have jointly entered into a contract for the performance of a mail service once in every four weeks between San Francisco and those colonies, relying upon the offer of the Imperial Government to convey the mails to and from San Francisco free of charge, besides paying to each colony contributing to the service the postage received on outward correspondence conveyed by such route, less the inland British postage. 2. The mail service between the Colonies of New South Wales and New Zealand and San Francisco will commence by the despatch of a packet from the colonies about the 20th December next, and from San Francisco for the Colonies by the despatch of a packet on or about the 27th January next. 3. New South Wales and New Zealand are the only colonies which have agreed to pay a fixed contribution to the subsidy to be paid for the performance of this mail service, but it has been decided by the Governments of these colonies to convey correspondence which may be specially marked by the senders for transmission by way of San Francisco —from the United Kingdom to the non-contributing Australasian Colonies- —provided that the Imperial Government will pay to New South Wales and New Zealand, to be equally divided between them, the ordinary outward postage on such correspondence less the inland British postage. In like manner, correspondence for the United Kingdom from the non-contributing Australasian Colonies will be conveyed by this route, by arrangement with : such colonies for the payment to New South Wales and New Zealand of the postage on such correspondence. 4. I am informed that the same policy will be followed by the Victorian Government in regard to the conveyance of correspondence to and from those colonies that do not contribute to the subsidy to be paid for the mail service between Melbourne and Point de Galle, a contract for which has been entered into by that Government; and that a similar course will be pursued by the Queensland Government with reference to the mail service about to be established between Brisbane and Singapore via Torres' Straits. 5. As it is very desirable that the necessary details of postal arrangements between Great Britain and the Colony of New South Wales may be speedily completed, I shall feel obliged if your Lordship will cause the London postal authorities to be informed of the intended establishment of a mail packet service between San Francisco and Sydney, and of the policy of the New South Wales and New Zealand Governments in reference to the conveyance of correspondence by this route to and from the non-contributing colonies, namely, Victoria, Queensland, South Australia, Western Australia, and Tasmania. 6. As the bulk of correspondence to and from New South Wales will be conveyed by the new route, it is a matter of the utmost importance that the postal arrangements for the conveyance of mails between San Francisco and London should be so complete as to insure that no unnecessary detention shall occur on that portion of the route. I beg, therefore, that such action may be taken as will secure to the colony the transmission of its mails in the shortest time possible. I have, &c., Saul Samuel, The Eight Hon. the Secretary of State for the Colonies, Postmaster-General. London.

No. 6. The Agent-Genebal to the Hon. the Colonial Secbetaby. 7, Westminster Chambers, Victoria Street, Westminster, S.W., Siii,— 14th November, 1873. I have the honor to enclose copy of letters forwarded by me to the Colonial Office and the I Postmaster-General, relative to the arrangements for establishment of the new mail service via San « Francisco, and also copy of a reply which I have just received from the Postmaster-General on the subject. I have, &c, I. E. Feathebston, The Hon. the Colonial Secretary, Wellington. Agent-General.

Enclosure 1 in No. 6. The Agent-General to the Eight Hon. E. G-. W. Heebeet. 7, Westminster Chambers, Victoria Street, Westminster, S.W., Sib, — 4th November, 1873. I have the honor to acquaint the Earl of Kimberley that an agreement has been entered into with certain British capitalists, by Mr. Thomas Eussell, acting for the Government of New Zealand, and the Honorable Saul Samuel, Postmaster-General of New South Wales, acting on behalf of the Government of that colony, for the establishment of a steam mail service between those colonies and San Francisco. The service is to be performed once in every four weeks, and the steamers employed are to call each way at Honolulu, and Kandavau, one of the Fiji islands.