F.—6B.

2

I beg to state that, considering the sum offered is less than what was paid for a four-weekly service at a slower rate of speed, I cannot submit the offer to Mr. Spreckels, fearing that it would probably cause him to break off negotiations with New Zealand, and lose a service that is without question far ahead of any other in its benefit to the colony. Trusting that the Government will approach the matter in a more liberal manner, I have, &c, The Secretary, General Post Office, Wellington. Geo. Dunnet.

No. 4. The Secretary, General Post Office, Wellington, to Mr. Dunnet, Auckland. (Telegram.) General Post Office, Wellington, 10th September, 1901. Frisco service and Mr. Spreckels's proposals : Cabinet has again considered matter, and has now decided to recommend Parliament to approve of payment of £15,000 (fifteen thousand pounds) per annum for three years. This is final.

No. 5. Mr. Dunnet, Auckland, to the Secretary, General Post Office, Wellington. (Telegram.) Auckland, 11th September, 1901. Wire to hand. Am wiring to San Francisco.

No. 6. Mr. Dunnet, Auckland, the Secretary, General Post Office, Wellington. (Telegram.) Auckland, 13th September, 1901. Have received reply from Mr. Spreckels. Offer declined.

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