D.—No. 3

No. 2. THE UNDER-SECEETAKY TO MB. F. GI8BOBNE. Colonial Secretary's Office, Auckland, 4th November, 1862. Sir, — I have the honor, by direction of Mr. Dillon Bell (in the absence of Mr. Domett), to acknowledge the receipt of your letter to His Excellency the Governor, dated loth July last, containing a proposal for uniting Australia with England by Electric Telegraph, and in expressing to you his thanks for that communication, to state that the Government will be glad to receive further communication from you as promised. I have, &c, W. GlSBORNE, Under-Secretary. F. Gisbome, Esq., 6, Duke-street, Adelphi, London.

No. 3. MR. F. GlSBORNE TO GOVERNOR SIR GEORGE GRET, K.C.B. 6, Duke-street, Adelphi, London, October 25th, 18G2. Sir,— I have the pleasure to state for your information, that the Netherlands Government entered into a contract with the promoters of the Anglo-Australian and China Telegraph on the 19th ultimo, engaging to pay them an annual subsidy of £8,500, so soon as they shall lay a new cable between Batavia and Singapore. I think it unnecessary to communicate to you the text of the contract, as the conditions are the same as those proposed for the laying of the Telegraph between Java and Queensland. The subsidy namely amounts to 5 per cent, upon the estimated cost of £170,000 ; it is to run for thirty years. The payment of it is contingent upon the successful working of the cable, except during thirty days in each year, which are allowed for effecting repairs ; Government messages are to be sent free to the extent of the subsidy; the tariff between Singapore and the East end of Java is to be settled by the Government in conjunction with the Company, and a separate wire is to be put by the Government through Java, if necessary. State messages are to have priority over private messages ; the excess of nett Revenue over 15 per cent, is to belong to the Government to repay it any advances on account of subsidy, and the Government are to be officially represented on the Company's Board. The Singapore and Batavia cable is to be laid cotemporaneouslv with the laying of the India, Singapore, and Java-Queensland Telegraphs. The Netherlands Government have also ordered detailed soundings to be taken between Cape Sedano (Java) and Coepang in Timor. The Government of India have determined to establish Telegraphic communication between England and India, vid Asiatic Turkey. The Telegraph will be a land line as far as Bussorah, near the Persian Gulf, and thence by sea for 1,000 sea miles to within 350 miles of Kurrachee in India. The manufacture of the Persian Gulf cable is to commence on the 1st proximo, and the whole communication is expected to be completed by the end of next year. This will no doubt increase the anxiety of the Australian Colonies to connect themselves telegraphically with India. The Malta and Alexandria cable continues perfect, and has never been interrupted. It only remains for me to express a hope that the proposition I sent out last July will be accepted by the Colonial Legislatures. I have, &c, F. GlSBORNE. Governor Sir George Grey, K.C.B.

No. 4. THE UNDER-SECRETARY, NEW ZEALAND, TO MR. F. GlSBORNE. Colonial Secretary's Office, Auckland, 4th February, 1863. Sir, — I have the honor, by the direction of Mr. Domett, the Colonial Secretary of New Zealand, *o acknowledge the receipt of your letter of the 25th October last, to His Excellency the Governor,

10

PAPERS RELATING TO