*.--ffo. 4,

6

RETORT OE THE SUBMARINE

4. A line from Eangoon. to Singapore, touching at Penang and other points, if deemed necessary. 5. A line from either Singapore or Malacca, whichever point may be found most suitable, via Java, to some point on the coast of Australia, to be hereafter decided. 6. A line from Singapore to Shanghae, touching at Hong Kong and other points, if deemed advisable, including Saigon, if the French Government concur in such a proceeding. 7. A line from Shanghae to Japan. With regard to the several proposed lines of telegraphic communication, my Lords are glad to find that, with some slight exceptions, the whole of the routes along which the lines in question would be laid have been examined, and the soundings completed sufficiently for telegraphic purposes, by the Admiralty, and marked in charts, the incomplete portions of the lines being between Java and Australia, of which about one-half has been sounded; between Saigon and Hong Kong, of which about one-half has been sounded, and the remainder is in progress ; and between China and Japan, of which about one-third has been sounded. My Lords have now only to add that (whilst acting on the principles laid down for their guidance in the aforegoing Minute,) they will be prepared to give their attentive consideration to any proposals which may be submitted to them for carrying out any of the schemes of telegraphic communication above adverted to, by parties who can adduce satisfactory proof of their possessing the necessary pecuniary means for carrying such undertaking into effect, whether by submarine cables, or, when circumstances will admit, by alternative land lines ; and my Lords will make arrangements with the Admiralty so as to afford such parties the opportunity of inspecting the surveys referred to. Transmit copy of this minute to Sir F. Sogers, and request that, in laying the same before the Earl of Carnarvon, he will state to his Lordship, that my Lords, in laying down principles for their own governance in regard to the amount of encouragement which it may be deemed expedient on the part of the Imperial Government to afford towards the extension of telegraphic communication, have no wish to interfere with any arrangements, whether pecuniary or otherwise, which the Governments of any of the Australian Colonies may be inclined to enter into with any Company or Companies formed for the furtherance of the object in question. Transmit copy of this minute to Mr. Hammond, for the information of Lord Stanley; to Mr. Eomaine, for the information of the Lords Commissioners of the Admiralty ; to Mr. Merivale, for the information of the Secretary of State for India in Council; and to Mr. Farrer, for the information of the Board of Trade.

lI.—LINE VIA QUEENSLAND AND JAVA. No. 2. Gentlemen, — Colonial Secretary's Office, Sydney, 10th January, 1870. With reference to the arrangements which I had the honor to make with yourselves and with Mr. Lilley, the delegate of Queensland, in connection with the proposed establishment of telegraphic communication with Europe via Java, I have now the honor to point out that it is quite possible, though not probable, that Mr. Fraser may not succeed in his negotiations with the Netherlands Government, and that that Government may prefer dealing directly with the Australian Colonies. It should, therefore, of course, be understood that it is the line proposed by Mr. Eraser that we are pledged to take up, and not necessarily that we should arrange with Mr. Fraser himself, who, however, it is hoped will not be objected to by the Netherlands Government. 2. So soon as the Cabinets of New Zealand and Queensland shall have intimated their approval of the memorandum already agreed to by the delegates, it will be desirable that this Government should address a letter to the Dutch authorities, to inquire in what position the negotiation between them and Mr. Fraser stands, to inclose for their information a copy of the arrangement made between New South Wales, New Zealand, and Queensland, the papers received from Mr. Fraser, &c, and to intimate that, in the event of any insuperable objection arising on their part to treat with Mr. Fraser, an arrangement might be made so as to admit of an agreement being entered into between the Dutch Government and the Government of three Colonies, without Mr. Eraser's intervention. I have, &c, The Hon. Julius Vogel and Charles Knight, Esq., M.D., John Eobeetson. Delegates of the Government of New Zealand.

No. 3. Memorandum concerning Telegraphic Communication between Australia, New Zealand, and Great Britain. That it is desirable that New Zealand should co-operate with New South Wales and Queensland, to promote the establishment of telegraphic communication between Australia and Great Britain, via Java, and between New Zealand and Australia. 2. That New Zealand join New South Wales and Queensland in their provisional arrangement for telegraphic communication with Java, bearing date 6th October, 1869, and annexed hereto, each Colony agreeing to bear equal proportions of the guarantee therein mentioned. 3. That the Colonies of New Zealand, New South Wales, and Queensland jointly undertake to guarantee a subsidy of eighteen thousand pounds annually for the construction of a cable between the Colonies of New South Wales and New Zealand, in the proportion of New Zealand five-tenths, New South Wales three-tenths, and Queensland two-tenths. 4. In the event of any of the other Colonies being admitted into these arrangements, that their contributions shall be appropriated in diminution of the liabilities of the three Colonies herein mentioned.