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No. 35. The Hon. Sir J. Vogel to the Hon. J. Norton, Sydney. (Telegram.) Wellington, 7th October, 1885. I attach copy of clause re your signature and approval your Parliament. The contract is with Union Company, who sub-contract with Oceanic. Option open to Pearce to come in until Friday. If he refuse, better vessels will be employed. Time, twenty-five days. Bonuses not to exceed thirty-six hours and detentions Honolulu Frisco thirty-six hours free demurrage. Beyond that until mails ready, five pounds an hour. Reply if you approve. Clause as follows : " This contract shall not be operative, but wholly void, unless the Postmaster-General of New South Wales shall execute it within twenty days after the date first hereinbefore written. And it is hereby expressly agreed that if there are matters in the said contract with which the said Postmaster-General is dissatisfied, or whi h he desires to be reconsidered, the same shall be open to reconsideration, and he may execute the contract subject to such reconsideration. If the Postmaster-General of New South Wales shall avail himself of this provision, the Postmaster-General of Now Zealand shall be deemed equally entitled to reconsider the same matters, and his execution of these presents shall be deemed to have been made subject to this reservation. If such reconsideration is required, then it shall take place in such manner as may be mutually agreed on between the Postmasters-General and the contractors. And it is further provided that the execution of this contract by the PostmasterGeneral of New South Wales shall be subject to the condition that he adopts the contract subject to its being ratified by the Parliament of New South Wales during its next succeeding session, but that until the ratification is refused, the said Postmaster-General shall continue to perform this contract on his part, including payments for any voyage commenced at the time of such refusal by the said Parliament." Hon. James Norton, Sydney. Julius Vogel.

No. 30. The Hon. Sir J. Vogel to the Agent-General. (Telegram.) Wellington, 7th October, 1885. Frisco service : Contract arranged Union Company. Sydney and Washington contribute. Union run between Sydney Honolulu. Sub-contract with Spreckels Honolulu Frisco. Union give Pearce option till Friday use his boats ; otherwise provide two themselves. Send copy this Pearce immediate. Agent-General, London.

No. 37. The Hon. Sir J. Vogel to the Agent-General. (Telegram.) Wellington, 12th October, 1885. Fb'isco time-table : Leave London November fifth, Frisco twenty-first; arrive Auckland Sydney, eleventh sixteenth December. Leave Sydney Auckland, third eighth December; arrive Frisco twenty-eighth December, London January thirteenth. And every succeeding four weeks. Advise Post Office, London, Washington. Agent-General, London.

No. 38. The Agent-General to the Hon. Sir J. Vogel. (Telegram.) London, 15th October, 1885. Frisco time-table : Washington received notice. Treasurer, New Zealand.

No. 39. Mr. Gray to the Secretary, General Post Office, Sydney. Sib,— General Post Office, Wellington, 10th October, 1885. I am directed by the Postmaster-General to forward you three copies of the proposed contract for che San Francisco mail service, which has been agreed to by the contracting company, and was signed yesterday by Sir Julius Vogel. The Union Company will execute early next week ; and so soon as their seal has been affixed the contract will be forwarded to you for ratification and execution by your Postmaster-General. I also enclose half a dozen copies of the approved time-table ; and would add that it has now been definitely arranged that Mr. Pearce is to come in, and that his boats, the " Australia " and " Zealandia," are to be employed to carry out that part of the service between Sydney and Honolulu. The boats to be employed between Honolulu and San Francisco are the " Alameda " and the " Mariposa," owned by the Oceanic Steamship Company—in every way suitable for the service. They are vessels of 3,000 tons, capable of attaining a speed of sixteen knots an hour, and fitted with all modern improvements. I have, &c, W. Gray, The Secretary, General Post Office, Sydney. Secretary.