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A.—3

(1.) " That the Conference having taken into farther consideration the following resolution, adopted on the motion of Mr. Langton, on the 27th ultimo, viz. : —'That inasmuch as the railway from Melbourne to Albury will be completed during the current year, and as mails can then be conveyed between Melbourne and Sydney in thirty-four hours, or twenty-two hours less than the average time occupied by the P. and 0. Company's steamers, thus securing the delivery of New South Wales and Queensland mails one day earlier than at present, —the terminus of the Galle Service shall be at Melbourne,' —are of opinion that the provision therein contemplated for the transmission of the New South AVales and Queensland mails from Melbourne to Sydney is not satisfactory. (2.) ''That pending t!io establishment of a second mail service between Europe and New South Wales, in any new contract which may be entered into for the service from Galle, it be provided that the mails for New South Wales and Queensland should continue to be delivered in Sydney, subject to the condition of New South Wales engaging to bear any excess of cost which may arise from the mails being conveyed beyond Melbourne by the mail steamer. (3.) "That with a view to the disposal of these resolutions, the Government of New South Wales be requested to lay official reports before the Conference on the existing facilities for the conveyance of mails from Albury to Sydney." 7. Mr. Wilson then moved a resolution of which notice had been given by him on the 31st ultimo, as follows (which having been amended, after much discussion, was unanimously agreed to) : — Original motion —" That this Conference move the Imperial Government to pay all charges upon the transmission of mails to and from London and San Francisco (retaining on account thereof all the postages collected in Great Britain), and to contribute the sum of £20,000 per annum towards a single service between San Francisco, New Zealand, and Sydney; such service to be agreed upon between the Government of New Zealand and New South Wales." Amended motion —" That this Conference move the Imperial Government to pay all charges upon the transmission of mails to and from London and San Francisco (retaining on account thereof all the postages collected in Great Britain), and to contribute the sum of £20,000 per annum towards a San Francisco Service, to be agreed upon between the Governments of New Zealand and New South Wales." 8. Mr. Palmer gave notice of the following motion : —" That in view of the serious inconvenience which would arise to the whole of the Australian Colonies in the event of interruption to telegraphic communication with Europe, it is desirable that a cable should be constructed between Java or Timor and the terminus of the Queensland telegraph lines at Norman Mouth. That this Conference, or the members of it who agree to these resolutions, recommend their various Governments to obtain Parliamentary sanction to a guarantee of 5 per cent, on the cost of construction of such cable. Recommendations contained in the letter of the Superintendent of Electric Telegraphs, herewith annexed, to be taken as a basis in any agreement with a Cable Construction Company. The Government of Queensland to enter into the necessary arrangements, and receive and pay all claims under such agreement, either with the Construction Company or the subscribing Colonies." The Superintendent of Electric Teleobapiis, Queensland, to the Colonial Secretary, Queensland. Electric Telegraph Department, Sir, — Superintendent's Office, Brisbane, 9th December, 1872. I have the honor to return, with Schedule annexed, the several offers lately received from England to lay a cable from East Java to the terminus of the Queensland lines at Carpentaria. I am informed that the British-Australian Company's Directors have declined to connect their cable with the lines of this Colony, although pledged to do so. Under these circumstances, I would strongly recommend, as most suitable for the general interests of Australia, that the promoters of the Indo-Australian Company's offer be accepted, subject however to the following modifications, namely— that the cable, in lieu of beiug taken to Java, as at first proposed, should be carried north of Timor to a point on the southern coast of Celebes near Macassar, a distance of 1,550 nautical miles, thence to the south-west coast of Borneo, 700 miles; total length of cable, 2,250 miles, —for which Queensland and New South Wales should jointly guarantee 5 per cent, on the cost of construction. A cable from thence to Singapore, 350 miles, to be provided for by the Company without a colonial guarantee. If this route is followed, the land lines in Sumatra and Java will be avoided, the important islands of Borneo and Celebes placed in circuit, ar.d on completion of the Calcutta and Singapore Company's line, which will be at once commenced, independent communication with the United Kingdom, via the Indo-European and Submarine Companies' lines, will be secured. In the event of this proposal being favourably considered, the Imperial authorities should be requested to take soundings between Celebes and Carpentaria without delay; and much time and trouble might be saved by sending a competent person to London, with full power from the Queensland and New South Wales Governments to enter into necessary arrangements for manufacturing, submerging, and working the cables. I have, &c, W. J. Cracknell, Supt., Electric Telegraphs.

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