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D—No. 2

2. The Court were given to understand by the enclosures to Sir G. Clerk's Letter of the 13th April, that the main object of Mr. Gisborne's scheme was to establish Telegraphic Communication between Australia and this Country, and that a part of his plan was to " obtain from the Indian Government a Contract for a Line from Teuasserim to Penang and Singapore." 3. The Court desire me to state that, notwithstanding Mr. Gisborne's statement as to the easy nature of that part of the undertaking, they do not feel in a position to enter into arrangements for the execution of a work of this description without a previous Communication with the Government of India, with the view of obtaining the report of their Superintendent of Electric Telegraphs, or of some competent Officer upon the subject, and it did not appear to them that the time employed in obtaining a reply to that reference could delay the completion of a work, which is to form the continuation of one to India, for the construction of which arrangements have not yet been made. 4. As, however, it appears from Mr. Gisborne's Letter, now under notice, that the concession granted to him by the Netherlands Government is limited in time, and is conditional upon an assurance that, the line between Rangoon and Singapore will not be left undone, the Court cannot hesitate to express their opinion that, when measures have been matured for making such remaining portions of the Link as may be required to complete the Telegraphic Communication between this Country and Australia, it would be the duty of the Indian Government to take steps for the simultaneous construction of that part of the Line which lies between its jurisdiction. I have, &c, (Signed) J. D. Dickinson. The Secretary, India Board.

LORD CARNARVON TO MR. GISBORNE. Downing Street, 30th July, 1858. Sir— With reference to my Letter of the 22nd ultimo, in which you were informed that a copy of ■your further Letter of the Bth of June, relative to the execution of that part of your proposed Line of Telegraphic Communication from England to Australia which lies between the Continent of India and Singapore, had been referred for the consideration of the Commissioners for the Affairs of India, I am directed by Secretary Sir E. Bulwer Lytton, to transmit for your information a copy of the answer which has been returned on the subject by that Board. I am, &c., (Signed) Carnarvon. Lionel Gisborne, Esq

f c (Enclosure.) I 17lh July, 1858. » J

MR. F. GISBORNE TO GOVERNOR GORE BROWNE, C.B. Melbourne, Cth July, -1850. Sin,— I have the honour to enclose a letter of introduction, given me by Sir E. B. Lytton to you, also copy of a document, dated the 19th of March last, containing the arrangement I made on behalf of the promoters of the Australian Telegraph with the Netherlands Government, for the construction by that Government of a Submarine Line from Singapore to Batavia this year, and other matters also set out in it. I also enclose the conditions under which Her Majesty's Government granted the Netherlands Government permission to land their Cable and to establish a station at Singapore for the purpose of working the Line ; also a Map showing the course of the proposed Australian Telegraph, and Extract out of the prospectus of the Red Sea and India Telegraph Company I send by Post a sample of the Red Sea Cable. I am come out on behalf of the promoters of the Australian Telegraph, to make a proposal to the several Colonial Governments to complete the Link of Telegraphic Communication between England and Australia which will still be wanting when the Lines now in course of construction by Her Majesty's, and the Netherlands Governments are completed. The Indian Line is now laid to Aden, and the remaining portion to Kurrachee is manufactured, and will be laid next December. From Kurrachee there exist Land Lines as far as Rangoon, and the Indian Government has bound itself to complete the Telegraph to Singapore. The Dutch Cable from Singapore to Batavia is manufactured, and will be laid next October. From Batavia there exists a Laud Line to Banjouwangi (East Java), so that my mission is to induce tho Australian Governments to extend the Dutch Line from East Java to Morcton Bay, as a submarine Line, and thence to Sydney by Land. An examination of the Admiralty Charts will show that the submarine Cable will, throughout its course, follow a chain of Islands on the Australian Coast, in very shallow seas, whence it can be easily picked up for repairs, and where intermediate stations can bo multiplied at pleasure, and will everywheie lie on a soft bed of sand or mud. The promoters propose that £800, COO be raised for the Submarine Line between East Java and Morcton Bay (this sum includes a sufficient Reserve Fund), and that the several Colonies contribute towards it in the same proportions as they now contribute towards their moiety of the Postal subsidy. This basis would leave New Zealand, as I am informed, to contribute 5h per cent, of the capital.