F.—4,

G

lI—COEEESPONDENCE EESPECTING CABLES FEOM NEW ZEALAND TO NEW SOUTH WALES, AND FEOM NOEMANTON TO SINGAPOEE. No. 1. Messrs. Siemens to the Hon. J. Vogel, Mr. Dainteee, and Sir Daniel Coopee, Bart., Agents for the New Zealand, Queensland, and New South Wales Governments. 12, Queen Anne's Gate (formerly known as 8, Park Street), Gentlemen, — London, S.W., 13th February, 1875. Eeferring to our interview on the 9th instant, when you submitted to us the question of guarantee for the raising of the capital required for a telegraph cable from Singapore to jSormanton, and from Australia to New Zealand, we beg leave to inform you that, as our interests in the matter of these Australasian cable lines are intimately bound up with those of the Indo-European Telegraph Company (Limited), we have put ourselves in communication with the latter Company, with a view to act, in so important a subject, in agreement with their opinion. Under these circumstances, we regret that we shall be unable to meet you again as early as the 16th instant, on a further discussion of the question proposed by you, but we will take the liberty of addressing you again on the subject at an early date. We have, &c, J. Vogel, Esq., ") Care of Siemens Brothers. E. Daintree, Esq., > J. Vogel, Esq., Sir Daniel Cooper, ) 49, George Street, Baker Street, Portman Square.

ll.—As to the proposed two Cables.

No. 2. Messrs. Siemens to the Agents. 12, Queen Anne's Gate (formerly known as 8, Park Street), Sib,— London, S.W., 25th February, 1875. We beg to confirm our letter of the 13th instant. Our Mr. Carl Siemens has not yet returned from the Continent, although we supposed he would be back before this, as mentioned to Mr. Fox. We therefore write to inform you, that we have obtained from the Board of Directors of the Indo-Europeau Telegraph Company some valuable concessions, having for their object to assist us in our endeavours to raise the necessary capital for the establishment of the intended telegraph line. Nevertheless, it appears to us that the conditions offered by the Governments of New Zealand, New South Wales, and Queensland, and contained in the resolutions passed by their respective Legislative Assemblies, and ratified in June, 1874 (as far as we are informed), do not oiler enough encouragement to capitalists to subscribe funds towards the undertaking; and even the further assistance which the Indo-European Telegraph Company has kindly consented to place at our disposal, although imposing considerable sacrifice upon themselves, cannot do much to improve the financial prospects of the Company materially. We are fully satisfied that our position, and the means at our command, as to the raising of the required capital, are most favourable. From inquiries and negotiations we have had with some of our friends of the highest influence and position in financial matters, we cannot, however, but come to the conclusion that it would be not only very difficult, but probably impossible, now, and for some time to come, and as long as the shares of most submarine telegraph lines remain at so great a discount as they are at present, to raise the necessary funds ; and we would therefore respectfully submit a reconsideration of these terms, with a view to afford the investing public a more favourable guarantee than the present conditions. We consider it our duty to recommend most strongly a reconsideration of these conditions, and we fully believe that the granting of more favourable conditions will not only considerably contribute to the object of the Governments named —namely, the establishment of a second Australian telegraph line —-but also greatly accelerate its attainment. We should be most happy, in the event of such reconsideration, to submit our views on the subjects to the Colonial Governments. We are, however, fully prepared, should, for the moment, the obtainment of such modifications be impossible, to use our best endeavours for the establishment of the Company, and the raising of the capital at the terms given. For that purpose, however, we should feel obliged if you would give us some information on the following points, viz.:— Paragraph lof the resolutions is the following :—" The three colonies shall jointly enter into an arrangement for the construction of an electric cable to be laid between some point in New Zealand and some point in New South Wales : and also a cable to be laid from Normanton, in Queensland, to Singapore : the latter to be a through cable, touching only at such points as may be agreed on, and to be entirely distinct the whole distance from the line between Port Darwin and Singapore." Ist Point. Will the new Company be at liberty to select in New Zealand, as well as in New South Wales, any point they themselves will consider most convenient and safe for the landing and the durability of the cable intended to be laid ; and will the Governments of New Zealand and New South Wales undertake to connect their system of over-ground lines, in those countries, with the^points or stations where the cable is respectively landed ?