F.-3

18

43. Except where express provision is made to the contrary, all sums of money payable by the Postmasters-General, under or by virtue of this contract for delivery of mails, or for demurrage, shall be so paid in the proportion of two-thirds by the Postmaster-General of New Zealand, and one-third by the Postmaster-General of New South Wales. And, except as aforesaid, all sums payable by, or recoverable from, the Contractors for damages or as penalties shall be apportioned between the said Postmasters-General in the like proportion. 44. Notwithstanding anything contained in this Contract the period within which the services herein provided for shall terminate may be extended by the Postmasters-General, so as to include an additional voyage from San Francisco to Sydney, and all the terms and provisions of this contract so far as applicable shall apply and extend to the said voyage. 45. In any case under the provisions of this contract where any act or thing may be done or performed jointly by the Postmasters-General, it shall be sufficient for all purposes if any document signed or action taken by one of the said Postmasters-General purports to be so signed or taken as well on his own behalf as on behalf of the other Postmaster-General, and such document or action shall be binding and effectual as regards the Contractors accordingly, who shall not have any right to require proof that each Postmaster-General is a consenting party thereto. But, as between themselves, consent to the signing of any document, or the taking of any such joint action, may be communicated by one of the Postmasters-General to the other of them in any way he may think fit. 46. The Postmaster-General of New South Wales shall execute this contract within twenty-five 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 which 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 New 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 any such re-consideration is required then it shall be determined in such manner as may be mutually agreed between the Postmasters-General and the Contractors. And it is further agreed that the execution of this contract by the Postmaster-General of New South Wales shall be on the condition that he executes the contract subject to its being ratified by the Parliament of New South Wales during its next succeeding session, but until such 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. 47. Should the Postmaster-General of New South Wales decline to execute the contract, or should such ratification as aforesaid be refused it shall be optional with the Postmaster-General of New Zealand to terminate this contract, upon his giving written notice to the Contractors for that purpose, or to undertake the joint liabilities of the said Postmasters-General under this contract, subject to such modifications thereof as he and the Contractors may agree. In witners whereof the said parties to these presents of the first and second parts have hereunto set their hands and seals, and the Contractors have hereunto caused their common seal to be affixed the day and year first above written. Signed, sealed, and delivered by the said Sir Julius' Vogel as Postmaster-General of New Zealand, in the presence of I (L.S.) JULIUS VOGEL. W. Gray, Secretary, Posts and Telegraphs. Signed, sealed, and delivered by the said John See, as Postmaster-General of New South Wales for the time being subject to the alterations marked in red ink in clause five being made a part of the contract, (L.S.) JOHN SEE. in the presence of S. H. Lambton, Secretary, Post Office, New South Wales. , The Common Seal of The Union Steamship Company \ of New Zealand (Limited) was hereunto affixed in the presence of V (L.S.) Geo. McLean, I Directors of the James Mills, j said Company, J [Note. —The italics are the amendments made in red ink by the Postmaster-General of New South Wales.] __ mmm _^__ mmraml _ ram

No. 58. The Union Steamship Company, Dunedin, to the Secretary, General Post Office. Union Steamship Company of New Zealand (Limited), Sib, — Dunedin, 23rd November, 1885. I have the honour to acknowledge receipt of your favours (two) of the 19th instant, and thank you for the copy of the contract agreement of the San Francisco mail service enclosed. Your remarks with regard to clause 5 have our careful attention, as also those relating to premium and penalty accounts ; and instructions will be forwarded to the commanders of the mail-steamers to afford the mail-agents all facilities for compiling their official log, as requested. I have, &c, E. P. Houghton, The Secretary, General Post Office, Wellington. (For Managing Director.)