F.—2

12

No. 32. The Hon. George McLean to the Secretary, General Post Office, Wellington. (Telegram,) Dunedin, 13th October, 1891. Thanks for telegram to Mills. John Spreckels away in Honolulu when mail left, but letters say their Postmaster-General would not postpone date of calling tenders, so did not propose tender for fortnightly service. Indicate carrying on service as at present, so not likely any difficulty arranging for three years. There is not likely to be other tenders, so that probably after tenders are in they may be able make suitable arrangements privately.

No. 33. Mr. Geay to the Secretary, General Post Office, Sydney. (Telegram.) Wellington, 14th October, 1891. We have been trying obtain reduction American territorial transit rates, but have now been met with decided refusal, on the ground that the maintenance of present maritime and territorial transit rates " was made a condition precedent to the entrance of the Australasian Colonies to the Union." I cannot think that Australian delegates at Vienna Congress would go beyond terms of the Sydney Conference resolution, which affirmed that maritime transit rates should not be lowered without consent of the countries maintaining the sea-services. Nothing was said about territorial transit at Conference. If, however, the condition covers both land- and sea-transit, then this colony is placed in an exceptionally unfavourable position. Kindly say what was really done by delegates. I hope Washington office has misapprehended the real effect of the stipulation.

No. 34. The Secretary, General Post Office, Sydney, to the Secretary, General Post Office, Wellington. (Telegram.) Sydney, 15th October, 1891. Colonies entered Union on understanding sea rates not lowered. Territorial rates seem not to have been mentioned, but Eegulation three, Convention eighteen eighty-five, protects United States territorial charge. However, presume nothing to prevent your negotiating for lower rates by special convention.

No. 35. The Agent-General to the Hon. the Premier, Wellington. (Telegram.) London, 19th October, 1891. Imperial Treasury's Decision.—Firstly, Atlantic service: Apportionment will be modified in the direction of Postal Union principles, consequently New Zealand Government pay Atlantic conveyance Homeward mail. Secondly, Pacific service : Imperial Government continue pay your contract rates outward letters, amount not to exceed twelve shillings. Thirdly, having regard to possible new routes, apportionment limited for twelve months from Ist November. Fourthly, Imperial Treasury consider incomplete Direct service not desirable.

No. 36. The Hon. the Premier to the Agent-General, London. (Telegram.) Wellington, 21st October, 1891. Message received nineteenth. What rates Atlantic? Will American transit be reduced now colony joined Postal Union ? Eailway service not specially maintained for colonial mails.

No. 37. The Agent-Genekal to the Hon. the Premier, Wellington. (Telegram.) London, 22nd October, 1891. Atlantic rates: Five francs kilogramme letters; fifty centimes other articles. American transit not reduced, being extraordinary service specified Postal Convention Eegulation. Bates fixed by agreement, '76 with United States.

No. 38. Mr. Geay to the Managing Director, Union Steamship Company (Limited), Dunedin. (Telegram.) Wellington, 24th October, 1891. London Post Office will contribute to Frisco service not exceeding twelve shillings per pound for letters, but requires us to provide Atlantic conveyance Homeward, which will increase cost of the service to us by over sixteen hundred pounds a year, and, having regard to " possible new routes " — no doubt meaning Canadian—will only arrange for twelve months. Contract with your company will therefore have to be for twelve months, with option of Postmaster-General to renew for another