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I beg permission also to represent in connection with the proposal to provide for the continuanceof a fortnightly mail-service to and from New Zealand by substituting the Suez for the Direct service,, that by determining to do away with the system of specially-superscribed correspondence, and thus dealing in part only with the whole question of the mail-services between this country and New Zealand, an important point arises as regards the particular mode in which Her Majesty's Government assists the colony in the maintenance of the San Francisco service—namely, by paying so much per pound for the outward correspondence forwarded by that route. When that mode of assistance was arranged it was understood that there would be a fortnightly mail to New Zealand, and that therefore at least a fortnight's accumulation of correspondence would go by the San Francisco route, and it may be assumed that it was on the strength of this that my Government have renewed the contract for the conveyance of the mails between San Francisco and New Zealand. The decision, therefore, to do away with the system of specially-addressed correspondence will, it appears to me, seriously affect the value of this contribution on the part of Her Majesty's Government, inasmuch as the amount of the correspondence will be diminished, and consequently the amount received on account thereof materially reduced. It is therefore with satisfaction that I learn, in reply to the representation which I ventured to make in my letter of the 26th ultimo, that an opportunity will be afforded to my Government to suggest other arrangements, and that any such proposal will receive prompt consideration. I have, &c, The Secretary, General Post Office, St. Martin's-le-Grand. Walter Kennaway.

Enclosure 2 in No. 161. The Seceetaey, General Post Office, London, to the Acting Agent-Geneeal. Sic,— General Post Office, 3rd December, 1891. I have received your letter of the Ist instant, in which you call attention to one part of your letter of the 6th of last month which has not yet been made the subject of any specific reply on the part of this department. -The point in question had reference to your inquiry as to the amount which the Imperial Post Office would be disposed to contribute towards the establishment of an intercolonial mail-service between New Zealand and Australia in connection with the mails carried between this country and New Zealand by the Suez route. I regret that this point escaped observation in my recent reply on the subject of the mailservice generally, but I may state that, involving as it does financial considerations, the question is necessarily one of those on which the Postmaster-General has felt it his duty to consult the Lords Commissioners of Her Majesty's Treasury. I am, &c, S. A. Blackwood. Walter Kennaway, Esq., C.M.G., Agent-General for New Zealand.

No. 162. The Hon. the Pbemiee to the Agent-Genebal, London. Sic, — Premier's Office, Wellington, 9th February, 1892. I have the honour to acknowledge the receipt of Mr. Kennaway's letter of the 4th December, enclosing copy of the one he addressed to the Imperial Post Office on the Ist idem, with copy of the reply thereto, on the subject of the ocean mail-services. Referring to the concluding portion of Mr. Kennaway's letter to the Post Office, I may inform you that the Postmaster-General is writing that office by the present mail. I have, &c, The Agent-General for New Zealand, London. J. Ballance.

No. 163. The Agent-Genebal to the Hon. the Pbemieb, Wellington. Sik, — 13, Victoria Street, London, S.W., 23rd December, 1891. I beg to acknowledge the receipt of your letter of the sth November last (vide No. 45), on the subject of the ocean mail-services. No reply has as yet been received from the Imperial Post Office to Mr. Kennaway's letter of the 6th November ; and I have not deemed it expedient to press for one, as, in the absence of further definite information as regards the arrangements which you propose to make with the Union Steamship Company for the establishment of an intercolonial service, so as to admit of prompt connection with the Federal packets at Melbourne, I do not feel that I can, with the best advantage, approach the Imperial Office on the subject. I observe that in your letter now under reply you express a hope that I shall, before its receipt, earn by cable that such arrangement has been completed; but as no such cablegram has, as yet, come to hand, I assume that the question is still unsettled. But I have no doubt that you recognise that it is important that I should have particulars of any such arrangement when asking the Imperial Post Office to make a reasonable contribution towards its cost. In fact, it appears to m& that very much rests on the action taken by you as regards this intercolonial service, for, if the monthly service by the Federal packets that will run alternately with that via San Francisco is connected with New Zealand by steamers subsidised to deliver the mails with special speed and punctuality, such an arrangement will do away with the desirability, as assumed by the Imperial Post