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No. 23. The Hon. J. Noeton to the Hon. Sir J. Vogel, Wellington. (Telegram.) Sydney, 24th September, 1885. As this colony must be party to contract for Frisco service, and you ask us to bear and receive onethird bonuses and penalties, would it not be simpler for this colony to pay ten thousand, being onethird of contract, and receive the postages of the other Australian Colonies, being thus jointcontractors ? We would be able to remit pilotage and dock dues, as under former contract. James Noeton, Sir Julius Vogel, Postmaster-General, Wellington. Postmaster-General.

No. 24. The Hon. Sir J. Vogel to the Hon. J. Norton, Sydney. (Telegram.) Wellington, 25th September, 1885. Youb telegram yesterday received. There are practical difficulties making you party to contract because of time. I will make going to Sydney contingent on your arranging with us. We can then enter into sub-contract with you, based on contract. If you prefer paying ten thousand and receiving half colonial contributions, and paying and receiving half bonuses and penalties, I am willing. Otherwise seven thousand and third premiums and penalties, we taking all from other colonies. Dock and light-dues understood to be free in either case. Have cabled PostmasterGeneral, United States, urgently asking special contribution four thousand yearly in addition to payment American mail-matter which contractors receive. If—which I doubt—four thousand be granted, will divide equally between you, contractors, and ourselves. I understand you approve connection at Honolulu. Please reply whole subject. Hon. James Norton, Sydney. Julius Vogel.

No. 25. The Hon. J. Noeton to the Hon. Sir J. Vogel, Wellington. (Telegram.) Sydney, 25th September, 1885. We see no practical difficulty in being made party to contract, which is what we understood you offered. We want direct control over contractors so far as our part of service is concerned. We never remit dues except to vessels under contract to us. We prefer to pay ten thousand, and pay and receive one-third bonuses and penalties, receiving, not half, but all contributions of other Australian Colonies, which probably will not amount to the extra three thousand. We do not object to change of vessels at Honolulu, provided contract and our payment cover entire service Sydney to Frisco. W Te will submit question to Parliament, which we expect will approve. James Noeton, Sir Julius Vogel, Postmaster-General, Wellington. Postmaster-General.

No. 20. The Hon. Sir J. Vogel to the Hon. J. Nokton, Sydney. (Telegram.) Wellington, 26th September, 1885. To meet your wishes, will frame contract to make you party to it. Must, however, ask you let us fix date departure London Sydney, to alternate with direct service. You are misinformed amount other colonies' contributions. For years not below five, now about six thousand ; and, as Union Company, Pearce, and Spreckcls mean push trade, American correspondence sure increase. You must choose between ten thousand and half contributions, or seven thousand and we keeping the whole; in either case you paying and receiving one-third bonuses penalties. Please reply. Hon. James Norton, Sydney. Julius Vogbl.

No. 27. The Hon. Sir J. Vogel to the Hon. J. Nokton, Sydney. (Telegram.) Wellington, 26th September, 1885. Below see cablegram to Washington and tolerably favourable reply. I propose dividing the four thousand equally between you, contractors, and ourselves. " Postmaster-General, United States.— Negotiating for service Sydney, Auckland, Honolulu, Frisco, connecting at Honolulu with Spreckels's steamers. Will you undertake for three years give twenty thousand dollars yearly in excess of present payments for carriage American mails ? Reply immediate definitely, as continuance service probably depends on your decision." Reply. —" Such continuous contract not authorized. Will allow such sum while desirable, unless Congress forbids. —Vilas, Postmaster-General, Washington." Hon. James Norton, Sydney. Julius Yogel.

No. 28. The Hon. J. Noeton to the Hon. Sir J. Vogel, Wellington. (Telegram.) Sydney, 28th September, 1885. Fe'isco service : We understand your proposition to be as follows : Contract between New Zealand, New South Wales, Union Company, Pearce, and Oceanic Company for three years' service between