P.—3

1886. NEW ZEALAND.

SAN FRANCISCO MAIL SERVICE (FURTHER PAPERS RELATIVE TO). [In continuation of papers presented on the 17th September, 1885.]

Presented to both Houses of the General Assembly by Command of His Excellency.

No. 1. Mr. C. Creighton to the Secretary, General Post Office, Wellington. Sir, — 606, Montgomery Street, San Francisco, 31st July, 1885. General Vilas, the Postmaster-General of the United States, having expressed his determination of repaying the $400,000 appropriation made by Congress for mail services into the Treasury, and not rendering any assistance to the Australian route, I deemed it my duty to correspond with him on the subject, so I wrote and forwarded the enclosed letter and enclosure to him, of date 20th July, 1885, but as yet have received no response thereto. No official report of General Vilas's intentions is known at the Post Office here, and all that I can learn is gathered from the newspapers, which are exceedingly contradictory in their reports ; but from all I can gather the Postmaster-General bases his intention to not expend the fund upon the ground that the sea-rate of postage —2 cents per ounce —is sufficient to pay for cost of transportation. He also says that the direct service via this port is of no benefit to this country, and that the mail can be carried just as expeditiously by way of London as under the present system. The San Francisco Chamber of Commerce has taken a lively interest in the continuation of the existing service, and has forwarded resolutions —a copy of which I enclose —to the President and the Postmaster-General. In response to cablegram received, I interviewed Messrs. Spreckels;, :^nd found that they were entirely undecided whether they would undertake the service or not, and so cabled to the Postmaster-General. The " Australia" made an exceptionally quick trip up this time, and I am happy to be able to report that she will sail on time for New Zealand. I have, &c, W. Gray, Esq., Secretary, Post Office Department, Charles Creighton. New Zealand.

Enclosure in No. 1. Mr. C. Oreighton to the Hon. the Postmaster-General, Washington. Sic, — San Francisco, 20th July, 1885. Having seen in the public Press rumours of your determination not to make disbursement of the fund provided for in the Post Office Appropriation Act passed by last Congress in favour of the Australian and New Zealand mail service. I take the liberty of addressing this communication to you to ascertain the authenticity of such reports. I beg leave to submit for your consideration the annexed enclosure, which is a copy of the original memorandum filed by Mr. E. J. Creighton, Special Postal Commissioner from New Zealand, in your department, and which, together with the other documents on file, gives a succinct history of the mail service since its inception. The Government of New Zealand is desirous of continuing uninterruptedly the rapidly-growing commercial intercourse between the United States and that colony, and, with this end in view, is disposed to assist in the continuation of the mail service, provided the Government of the United States will co-operate with it. And I may add that the New Zealand Government is under the impression now, and since the passage of the Act by Congress, that your Government would co-operate in the matter with it. I have, &c, Charles Creighton, Hon. William F. Vilas, Postmaster-General, Resident Agent for New Zealand. Washington. I—F. 3.