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2. The information given in your official as well as unofficial letters is at this time of especial value; and the letters have been perused by the Hons. the Premier and Postmaster-General with interest. The department was not altogether unprepared to learn that the attempt to obtain a reduction of the duty on Australian wools had failed, for in your previous month's letter you hinted there would be little prospect of any such concession being secured at present. It is hoped, however, the postal-subsidy question may fare better, notwithstanding the position is not by any means re-assuring. The Postmaster-General relies on your using your best efforts to secure a substantial payment to the colonies in aid of the San Francisco service, or at least a renewal of last year's appropriation of $40,000. Sir Henry Parkes has no doubt personally urged the matter on the United States Government and in other quarters, but the Postmaster-General is desirous that you continne your efforts on behalf of the contracting colonies. In your next letter I hope you maybe able to report that Congress has favourably dealt with the question. I have &c, W. Gray, E. J. Creighton, Esq., San Francisco. Secretary.

No. 28. The Hon. Mr. Johnston to the Hon. the Postmaster-General, Sydney. (Telegram.) Wellington, 29th March, 1882. Ist view of our Parliament meeting in May, have written by " Albion " to ascertain intention your Government re renewal 'Frisco service. Kindly reply early. Waltee W. Johnston, Hon. Postmaster-General, Sydney. Postmaster-General.

No. 29. The Hon. Mr. Beown to the Hon. the Postmaster-General, Wellington. (Telegram.) Sydney, 3rd April, 1882. No decision yet arrived at respecting renewal of 'Pr'isco service. 8. C. Brown, Postmaster-General, Wellington. Postmaster-General.

No. 30. Mr. Lamkton to the Seceetart, General Post Office, Wellington. Sib,— General Post Office, Sydney, 11th April, 1882. Adverting to your letter dated the 25th ultimo, inquiring the nature of the recommendations which this Government propose to make to Parliament regarding the continuance of the San Francisco mail service after the expiration of the present contract in October, 1883, I am directed to invite your attention to the Postmaster-General's telegram of the Ist (sic) instant, and to state that Mr. Brown is not in a position to give any further information than that already communicated on the subject in the telegram in question. I have, &c, S. H. Lambton, The Secretary, General Post Office, Wellington. Secretary.

No. 31. Sir F. D. Bell to the Hon. the Postmaster-General. Sir, — 7, "Westminster Chambers, London, S.W., 22nd March, 1882. I received on the 18th instant a telegram from the Premier desiring me to ascertain from Sir Henry Parkes, on his arrival in this country, what had been done in the matter of a postal subsidy while he was in America. I saw Sir Henry to-day, and he briefly told me what had happened during his stay at Washington. He saw the United States Postmaster-General, and urged the reasons for which the American Government ought to join in a subsidy for the continuation of the San Francisco service when the present contract expires; adding that, if this were not done, New South Wales and New Zealand would not maintain the service at their own cost. The case for exceptional treatment, as put by Sir Henry Parkes, was admitted, and when he left Washington he was under a strong impression that a subsidy would be proposed to Congress, though nothing final was then arranged. Sir Henry is preparing a full report of his negotiations for both Governments of New South Wales and New Zealand, and was good enough to promise me an early copy for transmission to you. I find that, after Sir Henry had left New York and was on his passage to England, the Postal Appropriation Bill was before the United States Senate, where the Postal Committee added an amendment to the Bill granting $2,500,000 as an annual subsidy to American lines of mail steamers running to foreign ports ; but this amendment was ruled out of order, and the Postal Bill passed without it. There is said to be, nevertheless, a belief that a vote for mail subsidies will be passed through Congress during the present session. In the meantime the Postal Bill provides for a fast mail train to the Pacific Coast materially shortening the time overland across the continent, and this acceleration is to apply to the Australian and New Zealand mails. I have, &c, The Hon. the Postmaster-General, Wellington. 3?. D. Bell. 3—]?. 3.