Untitled

New Zealand Herald, Volume XVI, Issue 5494, 26 June 1879, Page 4

Tiieuk appears to have arisen sotno hitch between the Eastern Telegraph Company, the Imperial authorities, and the Government of Cape Colony, over the amount and allocation, of the provisional subsidies, for the completion of a submarine cable by the firstnamed contracting party from Aden to Natal. This cable, it was arranged, should connect with the land Hues of Capo Colony and the rest of South Africa. The terms and calculations upon which the enterprise was entered into are as follows:—The Imperial Government co give a subsidy of £35,000 per annum ; Cape Government, £15,000; Natal Government, £5000 ; Portuguese Government, £5000 : for twenty years, subject to a stoppage of the subsidy "if the cable remained out of repair for more than six months at a time. The company further estimated an income from messages of £30,000 per annum, and they were to receive £12,500 from the existing eection of the Eastern Telegraph Company. In all, they estimated their gross income at £102,500 per annum, and on their part they engaged to lay and maintain a cable for twenty years. Under the above engagement active operations wero at once begun. A section of cable already shipped for duplicating a portion of one of the Australian cables was landed and rostowed in another steamer, the Kangaroo, which sailed via Suez canal, in order that she might at onco begin the work of laying tbe first section of cable from Natal to Delagoa Bay, and the manufacture of the balance rtquired, 4000 miles, was at once commenced. The hitch which threatens the breakdown of the entire scheme originated in this way :—"lt appears than the Crown Agent 3 acting, as far their powers would admit, on behalf of the Capo Government, and in concert with the Imperial Government, made an agreement with the Telegraph Company for a cable between Natal and Adeu, and conditionally promised for the Capo a subsidy of £15,000 per annum to such a scheme The Colonial Government, however, declined to give any subsidy except to a cable which should have its terminus in the colony itself, and which, under the circumstances, would havo involved an additional length of cable costing some £100,000. Mr. Forde stated that the company were not prepared to agree to this condition; that their capital and tlmir prospects did not admit of any further liability, except with a proportionate increase of subsidy, to he deviv'd from S"tri" fotop or oMier, and tba , : l iU.y »c.e i.« ;. -ur.J to '.c- .. tii.

work from Natal unless some clear under standing was arrived with regard t< to the Cape subsidy of £15,000 per annum.' la view oE the threat held out by Mr. Forde that unless some decisive action was takei to come to terms, he would direct the cable laying steamer to proceed to Australia, thi Chamber of Commerce,, Cape Town (by depu tation), interriewed the Premier, Mr. Sprigg on the subject. The Chamber had previoual; passed a resolution in favour of meeting th Imperial Government in a generous spirit and that the subsidy payable under th Colonial Act of Parliament should be givei for this submarine cable to Natal. Mr. Sprigi adhered to hie determination, although hi intimated that he was open to conviction b; those interested. The Cape Argus, of Ma; 10, says on the subject:—" The prospecta put forward by the promoters does no warrant the Cape in driving a hard bargait with them, aud we think the Chamber wa: right in taking the liberal view it did of th( matter. Considering what the Imperia Government is doing now for South Africa we believe it would be very inopportune foi the Cape to exhibit any niggardliness in its transactions with Great Britain. Besidei i this, telegraphic communication with Eu rope is a great boon to this country. Everj feeling suggests that advantage ehould b< taken of this opportunity, and we trust the Government will see its way to remove any impediments in connectiug, as soon as possible, South Africa with the remainder ol the world by telegraphic communication."