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Government, and informing His Lordship that Mr E. P. Rea has been specially charged with a mission to proceed to the East, and whilst here General Orders have been issued for making the various details connected with such transfer, as well as the necessary steps for effecting a simplification of the system of accounts at present established between the Imperial and Colonial Authorities.

Mr. Rea has also afforded His Excellency an opportunity of perusing the instructions of which he is the bearer, whilst Sir Richard Graves MacDonnell has not thought it desirable to raise any objections to the increased labor and responsibility, which it is proposed to throw on the Executive here, he nevertheless is desirous that no final decision should be adopted, till he shall have had the advantage of receiving from yourself a special report of the impression made by the result of personal inquiries at each place where a Post office is or may be already established or where there may be apparent necessity for establishing further.

His Excellency also feels that in a matter involving important consideration affecting both Imperial and Colonial interests it would, if practicable, be most desirable that the proposed inquiries should be conducted by yourself and Mr. Rea jointly,

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