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nor has it been so understood by European countries. The clause in question appears to have been inserted with special reference to the case of the Canadian Transcontinental service, and was intended to give effect, so far as Canada is concerned, to the first paragraphs of Article 111. and not to the last, which relates only to sea transit. Under the terms of the Convention of Washington the United States was allowed 6 francs per kilogramme on letters and post-cards, and 2 francs per kilogramme on other matter for the conveyance of foreign mails between New York and San Francisco. The Canadian Post Office, although performing & service from the Atlantic to the Pacific in all respects identical with that across the territory of the United States, received only the ordinary rate of 1 franc and 70 centimes per kilogramme on letters and post-cards and 21 £ centimes per kilogramme on other matter. In view of these facts Canada submitted to the Congress at Rome the proposal that its Transcontinental service should be put on the same footing as that of the United States, and the question was finally settled by the adoption of a proposal made by the representative of Great Britain, that land-transit rates should be fixed on the basis of the distance of conveyance. The record of the discussion which took place on the subject will be found on page 268 of Volume 2 of the " Proceedings of the Postal Congress at Rome." where the following paragraph occurs in reference to the last section of paragraph sof Article IV : (Translation). " Mr. H. Babington Smith, the representative of Great Britain, explained that without this addition a service such as that furnished by the Canadian Transcontinental could not be included in the common rule mentioned in paragraph 3 of Article IV. He added that the adoption of the proposed addition would call for the withdrawal of the proposition designed to classify the Canadian Transcontinental among the extraordinary services." It is obvious from these remarks that the intention was to give Canada the benefit of the rates fixed for services exceeding 3,000 kilometres in distance, and not to fix any minimum land-transit charge, as appears to be understood by your Administration and the United States. I might add that a mail passing from Great Britain to Norway is charged the minimum land-transit rates of 1 franc and 50 centimes and 20 centimes, applicable to the two classes of matter, by each of the four countries through which it passes —Holland, Germany, Denmark, and Sweden. The total distance traversed by such a mail is less than 1,000 miles, and it does not appear likely that the Postal Congress intended that a kilogramme of letters passing over that route should pay four rates, or 6 francs, while the same weight and class of matter conveyed from Vancouver to New York, a distance of over 3,000 miles, should only be subject to a maximum charge of 3 francs. I beg therefore to submit for your further consideration the question of accepting the Canadian account as rendered. 1 have, &c, R. M. Coulter, I irniit \ Postmaster-General. The Secretary, General Post Office, Wellington, New Zealand. [P.O. 09/311.] .^______^^_____

No. 146. The Hon. the Postmaster-General, Wellington, to the Secretary, General Post Office, London. Sib, General Post Office, Wellington, Bth July, 1910. 1 have the honour to submit herewith copy of a letter from the Deputy Postmaster-General, Canada, relative to the rates payable by this Dominion for the transit of its mails for the United Kingdom across North America, and to request that your office will kindly favour this Department with an expression of opinion as to the correct interpretation of the clauses of the Postal Union Convention of Rome quoted therein. This Department has hitherto been under the impression that the rates for distances exceeding 3,000 kilometres, provided under Article IV, paragraph 3, subsection I°, clause 36. should be divided between the United States of America and Canada, according to the distance traversed through each country, the last sections of paragraphs 3 and sin Article IV appearing to bear out this view. It may also be mentioned that rates worked out on this basis have been submitted by the Post Office of the United States of America, and accepted by this Department. 1 have. &c, D. Robertson, The Secretary. General Post Office, London. For the Postmaster-General.

No. 147. The Secretary. General Post (Mice, London, to the Hon. the Postmaster-General, Wellington. Sir, — General Post Office, London, 9th September, 1910. With reference to your letter of the Bth July last, I am directed by the Postmaster-General to acquaint you that in his opinion the Administration of the country of origin is liable, under section 3 of Article IV of the Convention of Rome, to the Administration of each of the countries participating in the land transit of mails for the full charges specified in the subsection 1° of the section referred to. You will doubtless have observed that the exception made in the last paragraph of section 3 of the article in question applies only to the case of sea conveyance. The last paragraph of section sof the same article is expressly intended to enable an Administration performing a land transit of over 3,000 kilometres to profit by the full charges specified in section 3, I°, b, of the Article, even in cases where the charges might have been less before the Rome Convention came into force I have, &c, A. B. Walklev. The Hon. the Postmaster-General, Wellington, Xc-w Zealand. For tin . Secretary. [P.O. 09/311.1