D—Xo. 2.

MR. STAFFORD TO COLONIAL SECRETARY, KF.W SOUTn WALKS. New Zealand, Colonial Secretary's Office, Auckland, 19th March, 18G0. Sir,— I have the honor to acknowledge the receipt of your Letter of the 1 Oth ultimo, transmitting a copy of Resolutions passed by the Legislative Assembly of New South Wales respecting a Subsidy for the construction and maintenance of a Telegraphic Line to East Java, and enquiring whether the Government of New Zealand will co-operate in the way suggested, and, if so, whether it would be disposed to leave with the Government of New South Wales the details of such negotiations as may be necessary for completing the arrangements. This Government fully recognises the importance of the projected Telegraphic Communication between Europe and Australia, both as a means for the present of greatly accelerating Communication between England and New Zealand, and, especially, as offering an almost certain guarantee, if successfully established, that complete Telegraphic Communication would, at an early period, be secured to this Country. The Government will accordingly submit the subject to the consideration of the Legislature, with a view to provision being made, in the meantime, for a contribution on the part of New Zealand towards any subsidy paid on account of the proposed Communication, so long as it is maintained. The amount, however, which this Colony may be expected to contribute will manifestly be governed by the circumstance to which I have before referred, viz.,—whether the Telegraphic Line is carried to its Coasts or terminates in Australia. In the latter case, although the Colony would undoubtedly be benefitted, its contribution cannot be so large as it might fairly be required to be in the former case. I have every confidence that the Government of New South Wales will take all necessary precautions in negotiating the details of the project in question, which is especially a matter for its consideration. I have, &c, (Signed) E. W. Stafford. The Honorable the Colonial Secretary, Sydney, New South Wales.

MR. BUTCHER TO COLONIAL SECRETARY, NEW ZEALAND. Hobart Town, Tasmania, February 3rd, 1859. Sir,— Having understood it is the intention of your Government to lay down certain Lines of Electric Telegraph, I do myself the honor to enquire,— Ist. Between what points the Government intend constructing their contemplated Lines of Communication. 2nd. About what time it is the intention of the Government to commence the works referred to. As I have been engaged for the past ten years in the erection, construction, and general management of Overland and Sub-Marine Telegraphs, both in the Colonies and abroad, I feel assured I should be enabled not only to construct your Telegraph Lines, but to satisfactorily organize and work the same when completed, which latter Service I should be most happy to undertake until such times as I had perfected your own Officers in the science. I may state that I have just returned from England where I have been engaged for the past ten months in the superintendence of manufacture, and shipment of a Sub-Marine Cable of two hundred and forty miles in length, which is to connect Victoria with Tasmania, which I hope to have submerged by the first week in March. I may also add that I have constructed all the Lines of Telegraph now at work in this Island, as well as many in the Colony of Victoria. Should you require any information relative to the organization, or working generally, of Colonial Telegraphs, I should be most happy to communicate with you, and give you the benefit of my experience in these matters. Or should you wish a personal interview I would willingly visit your Colony after the completion of my Sub-Marine Contract. Trusting you will favor me with an early reply, I have, &c, (Signed) W. 11. Butcher, The Honorable the Colonial Secretary, . 43, Davy Street. New Zealand.

UNDER SECRETARY NEW ZEALAND, TO MR. BUTCHER. Colonial Secretary's Office, Auckland, 19th March, 1859. Sir,— I am directed to acknowledge the receipt of your Letter of 3rd ultimo, offering your Services in connexion with the construction of any Lines of Electric Telegraph which the Government of New Zealand may wish to establish in that Colony.

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