F.—4a,

1878. NEW ZEALAND. SAN FRANCISCO MAIL SERVICE (FURTHER PAPERS RELATIVE TO). (In continuation of Papers presented on the 9th August, 1878.)

Presented to both Houses of the General Assembly by Command of His Excellency.

No. 1. Mr. Gray, to the Secretary, General Post Office, Sydney. Sir,— General Post Office, Wellington, 20th July, 1878. I have been directed by the Postmaster-General to acknowledge receipt of the Hon. Mr. Burns's letter of the 10th ultimo, pointing out that, as the modification of the terms of the Pacific Mail Company's Contract had now been sanctioned by the Legislatures of New South Wales and New Zealand, it would be necessary to have an amended agreement prepared and executed, to meet the altered conditions of the service. I have also to acknowledge receipt of a printed copy of the existing contract, showing the proposed alterations with respect to the modifications as affecting your colony. The opportune presence of the Hon. Mr. Burns in New Zealand enabled the matter of the modified service being fully discussed by the Hon. Mr. Burns and the Postmaster-General of this colony, and a mutual understanding has been arrived at. It has been agreed that the amended contract shall be prepared in London, and that the Agents-General be instructed forthwith to take necessary action. Also that the Contractors be requested to submit another surety in the place of Mr. MacGregor ; and with respect to this, I am to state that on the 12th instant Sir Julius Vogel was directed by telegram to confer with the AgentGeneral for your colony, and make the necessary application to the Contractors. Practically, therefore, this point has been disposed of; and it is assumed a somewhat similar telegram has been sent from your colony to Mr. Porster. I forward you a printed form of contract, with particulars of the amendments adapting the service to the requirements of this colony. These amendments have also been agreed to by the Post-masters-General. I have only to remark that the Postmaster-General is of opinion, in which opinion the Hon. Mr. Burns concurs, that all premiums and penalties should be paid and deducted in respect of the through voyages only, and that the sums should be paid and shared equally by the two colonies. The Contractors, however, to be still liable for penalties for late arrival at Auckland from San Francisco. The necessary instructions to the Agent-General, in connection with the preparation of the amended agreement, go forward by the outgoing mail, and by a subsequent mail Sir Julius Vogel will be requested to take such steps as may give practical effect to the wishes of the Hon. Mr. Burns and the Hon. Mr. Pisher, as expressed in paragraph 7 of the joint memorandum agreed to on the 11th instant,* a copy of which I have to enclose for your information. I have, &c, W. Gray, The Secretary, General Post Office, Sydney. Secretary.

No. 2. Mr. &RAY to the AtiEHT-G-ENEEAL. Sir,— General Post Office, Wellington, 20th July, 1878. With reference to the Hon. Mr. Ballance's letter of the 4th May last, forwarding copy of telegram from the Hon. the Colonial Secretary of New South Wales, intimating that the New South Wales Parliament had approved the modifications of the terms of the San Prancisco Mail Service, I have been directed by the Hon. the Postmaster-General to forward you the enclosed extracts from a memorandum agreed to by the Hon. the Postmaster-General of New South Wales (who made a special visit to this colony in connection with telegraph and postal matters), and the Hon. Mr. Pisher. * See Enclosure 1 in No, 2 of present series, l—F. 4a.