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Sydney, Auckland, Honolulu, without break, by Union Company or Pearce's boats ; thence between Honolulu and Frisco by Oceanic Company's boats, which will wait at Honolulu, if necessary, twenty-four hours without demurrage. Time not to exceed twonty-fivo days between Sydney and Frisco. New South Wales to pay ten thousand per annum, and one-third bonuses for extra speed; and to receive half contributions from other Australian Colonies, one-third penalties chargeable to contractors, and one-third of any subsidy which may be obtained from United States. New South Wales to remit to contract-boats all dock and other dues, as in case of late Pacific contract. Proper provision to be made in contract for suitable boats and conveniences for transhipment, as mentioned in your telegrams. You to prepare contract and submit it to us for approval. You may fix timetable. On receipt of your reply confirming above we will submit matter for approval of Parliament. James Nobton, Sir Julius Vogel, Postmaster-General, Wellington. Postmaster-Gensral.

No. 29. The Hon. Sir J. Vogel to the Hon. J. Noeton, Sydney. (Telegram.) . Wellington, 29th September, 1885. Youe telegram correct, excepting that we are only to divide the four thousand from United States, indicated by the telegrams of which I sent you copy. Other subsidies, if any, obtainable from States, contractors keep. Desirable, if possible, you should avoid publishing cablegram on the two points relating to twenty-five days' service and demurrage, as we are trying to make voyage twenty-four and half days, and to obtain forty-eight hours free of demurrage at Frisco and Honolulu. If known you are contented with less, contractors will not grant. The contract will be made between two Postmasters-General and contractors. We shall all sign, and then send to you. There will be clause making contract inoperative without your signature, a^id declaring that if there are any points with which you are not satisfied, they shall be subject to reconsideration. Hope you will get parliamentary sanction at once. I calculate net cost of service, exclusive penalties and bonuses, will be about sixteen thousand to us, and to you about six thousand. This, of course, exclusive of postages you and we will receive in our own colonies and from England. Hon. James Norton, Sydney. Julius Vogel.

No. 30. The Hon. J. Noeton to the Hon. Sir J. Vogel, Wellington. (Telegram.) Sydney, 29th September, 1885. I expect you to obtain further concessions in matter of time and demurrage, but thought it better to accept terms mentioned by you, so as to leave final arrangement entirely in your hands, relying on your expressed expectation of obtaining better terms. I fully understand that contractors are to keep all payments from United States except the four thousand. My last telegram to you was published this morning. James Noeton, Sir Julius Vogel, Postmaster-General, Wellington. Postmaster-General.

No. 31. The Hon. Sir J. Vogel to the Agent-Geneeal. (Telegram.) 29th September, 1885. Negotiating fresh Frisco service including Sydney. Advise best day leave London and New York. Agent-General, New Zealand, London. Julius Vogel.

No. 32. The Agent-Geneeal to the Hon. the Postmastee-Geneeal. (Telegram.) 30th September, 1885. Frisco service : Post Office advises Thursdays, London; Saturdays, New York Treasurer, New Zealand.

No. 33. The Hon. Sir J. Vogel to the Hon. the Postmastee-Geneeal, Sydney. (Telegram.) Wellington, 4th October, 1885.;c3M§ Paper contains cablegram that your Parliament prorogued with view to general election. Will you sign contract without express authority, or sign subject to subsequent ratification by Parliament, or to its remaining on table without disallowance during sixty days first session, which I believe is English mode of procedure? Payments under contract to be continued until disallowance. The Hon. the Postmaster-General, Sydney. Julius Vogel.

No. 34. The Hon. J. Noeton to the Hon. Sir J. Vogel, Wellington. (Telegram.) Sydney, 3rd October, 1885. I will sign contract subject to ratification by Parliament, and will continue payments until disallowance. James Norton, Sir Julius Vogel, Wellington. Postmaster-General.