TELEGRAPHIC COMMUNICATION BETWEEN GREAT BRITAIN AND AUSTRALASIAN COLONIES VIÂ PACIFIC CABLE, VANCOUVER ISLAND, CANADIAN LAND LINE ROUTE, AND ATLANTIC CABLE (FURTHER PAPERS RELATING TO). [In Continuation of F.-3, Sess. I., 1887.]

Appendix to the Journals of the House of Representatives, 1887 Session II, F-03

F.—3.

Sess. 11.—1887. NEW ZEALAND.

TELEGRAPHIC COMMUNICATION BETWEEN GREAT BRITAIN AND AUSTRALASIAN COLONIES VIÂ PACIFIC CABLE, VANCOUVER ISLAND, CANADIAN LAND LINE ROUTE, AND ATLANTIC CABLE (FURTHER PAPERS RELATING TO). [In Continuation of F.-3, Sess. I., 1887.]

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

No. 1. The Seceetaey, Pacific Telegraph Company, Limited, to the Hon. the Postmastee-Geneeal, New Zealand. Pacific Telegraph Company, Limited, 34, Clements Lane, Sic,— . London, E.C., 13th May, 1887. By order of my directors I have the honour to submit for your consideration a proposal on behalf of this company to lay a cable from Vancouver Island to Australia. The proposal is in the amended form in which it was laid before the Colonial Conference on the 6th May, 1887. The directors hope that the very moderate nature of the company's proposal, combined with the exceptional strategic and commercial advantages of the Pacific route, will insure the favourable consideration of your Government. I am, &c, Haeold Pinch Hatton, The Postmaster-General, New Zealand. Secretary.

Enclosure in No. 1. The Seceetaey, Pacific Telegraph Company, Limited, to the Chaieman of the Colonial Conpeeence, London. Pacific Telegraph Company, Limited, 34, Clements Lane, Sic,— London, E.C., 3rd May, 1887. Eeferring to the proposal submitted by the Pacific Telegraph Company for the consideration of the Colonial Conference on the 20th April, 1887, I am now instructed by the directors of the company to submit, as an amended proposal, the following : — (1.) The Pacific Telegraph Company shall lay a line of cable from Vancouver Island to Australia, touching at Hawaii, Fanning Island, Samoa, Eiji, and New Zealand. (2.) The Governments of Great Britain, of Canada, and of the Australasian Colonies shall guarantee to the Pacific Telegraph Company Government traffic to the amount of £75,000 per annum, in such proportions as may be mutually agreed upon by the said Governments. (3.) The above guarantee shall date from the completion of telegraphic communication between Canada and Australasia by the company, and shall continue in force for twentyfive years from that date, subject to the following conditions :— (4.) In the event of telegraphic communication being interrupted, thirty-five days shall be allowed to the company for repairs ; if at the expiration of thirty-five days telegraphic communication shall continue to be interrupted, then the guarantee shall be suspended from that date until telegraphic communication be re-established : (5.) The rate per word payable by the Governments shall be the current, rate charged by the company to the general public ; but such rate shall never exceed 4s. per word for the transmission of messages from England to Australasia.

E.—3.

In my statement to the Colonial Conference on the 27th April I mentioned that the proposal of the Pacific Telegraph Company, which was then before the Conference, for an annual subsidy of £100,000 for twenty-five years was based upon calculations as to the approximate cost of constructing and laying a cable which were made some time ago. I further stated that the company was at that very time actively engaged in collecting expert evidence as to the most recent improvements in the manufacture of cables, and the consequent reduction in the cost of constructing and laying them. The result of investigation has been to convince the directors that the original estimate for the cost of the undertaking will bear some reduction. In addition to the above, the directors have been influenced by considerations of even greater weight. Events of very recent date point to the certainty of the Pacific Ocean being shortly developed as one of the main waterways of the world's commerce. In view of the very largely increased intercolonial telegraphic traffic which must inevitably follow any such development, the directors feel justified in accepting the extra risk which the reduction of the guarantee from £100,000 to £75,000 per annum will entail. As above stated (in clause 5), the directors of the Pacific Telegraph Company bind themselves to start by reducing the rate to 4s. per word for the transmission of ordinary messages from England to Australasia, and further bind themselves not to exceed such rate. The reduction to 4s. per word, however, is by no means intended to be final, for, if the estimates of increased traffic are in any way realised, the company will be in a position to effect very considerable further reductions. I have, &c, The Chairman, Colonial Conference, London. Haeold Einch Hatton.

No. 2. Dr. Lemon to the Seceetaey, Pacific Telegraph Company, Limited, London. Sic,— General Post Office, Wellington, 30th June, 1887. I have the honour, by direction of the Hon. the Postmaster-General, to acknowledge the receipt of your letter of the 13th ultimo, forwarding a copy of the one you addressed to the Chairman of the Colonial Conference on the 3rd idem, embodying the amended proposals of your company, in which the sum of £75,000 appears as the contribution to be collected from the Governments of Great Britain, of Canada, and of the Australasian Colonies towards the maintenance of the cable to be laid between Vancouver Island and Australia. I have, &c, The Secretary, Pacific Telegraph Company, Limited, C. Lemon, 34, Clements Lane, London, E.G. Superintendent. [Approximate Cost of Paper.— Preparation, nil; printing (1,425 copies), £1 18. 6a..]

Authority: Geougb Didsbuet, Government Printer, Wellington.—lBB7.

2