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the Company should reduce their charges for the transmission of messages by the New Zealand cable to the rates which we have proposed to Colonel Glover in a separate paper. (5.) That the repairing ship of the Company should be at all times available, on reasonable notice, for the repair of the Cook Strait cables. All the expenses of the ship, less her charges for a corresponding period if she were laid up in port, to be defrayed by the Government of New Zealand, which Government should also indemnify the Company, or provide by insurance, for any damage to the steamer, her machinery, or gear in connection with the repair of the said cables. —J. T. Burns, J. T. Fisher, and J. G-. GiovEE,

No. 12. Wellington, 11th July, 1878. Subject to the scheme for tho duplication of the cable between Port Darwin and Europe being agreed to, and effect being given to clauses 3 and 4 of the memorandum of the Postmasters-General of New South Wales and New Zealand, the following reductions in the tariff on the New* Zealand cable have been assented to by the representative of the Eastern Telegraph Extension Company, Colonel Glover, and the Governments of New South Wales and New Zealand by their respective Postmasters-Generai : — Present Bates. —First ten words : Cable Company, 7s. 6d.; New South Wales, Is.; New Zealand, Is. Each additional word: Cable Company, 9d.; New South Wales, Id.; New Zealand, ld. Proposed Pates. —First ten words: Cable Company, 65.; New South Wales, Gd.; New Zealand, Gd. Each additional word: Cable Company, 7d.; New South Wales, ld.; New Zealand, ld.—J. G. Glover, Managing Director, Eastern Extension A. and C. Telegraph Company ; J. T. Burns, Post-master-General of New South Wales; J. T. Fisher, Postmaster-General and Telegraph Commissioner, New Zealand.

No. 13. The Chief Secretary, Victoria, to the Hon. the Colonial Secretary, Wellington. Chief Secretary's Office, Melbourne, Victoria, 23rd December, 1878. Sir, —I have the honor to inform you that the terms of the proposed contract for the second submarine cable have now been finally agreed upon between the representatives of the Australian Colonies and the directors of the Eastern Extension Telegraph Company, and that they have also been ratified at-a general meeting of the shareholders of the latter held in London a few days since. Copies of the agreement are enclosed for your information. The contract to be founded thereon wiil be prepared with all convenient despatch. Appended is a memorandum showing the proportion iu which the subsidy will be chargeable to the various colonies until the next general census is taken, when a redistribution of the amount will be necessary, as arranged at the Conference. It will give you satisfaction to hear that the PostmasterGeneral of New South Wales has received an intimation that the construction of the new cable has already been commenced. If, therefore, no unforeseen accident should occur to delay its completion, it is likely the cable will be laid and in full operation at a much earlier date than that to which its construction is limited by the conditions of the agreement. It may be considered advisable, at a subsequent period, that the Governments of the different colonies should agree upon the adoption of some concurrent and uniform method for remitting the subsidy when due, and paying it over to the Company in pursuance of clause 8. This, and some minor matters of detail, will remain to be disposed of; but the business intrusted by the Conference to the Hon. Mr. Burns and myself may be considered to have practically terminated when the agreement was signed. I cannot conclude without expressing my appreciation of the great services rendered by my able colleague throughout the whole of the proceedings, and it is but due to him to state that, without the patience and determination exhibited by him in overcoming successive difficulties as they arose, the negotiations would not have been brought to so successful a termination. —I have, &c, Graham Beery.

Statement of the Distribution of the Cable Subsidy between the Australian Colonies, in the Proportions of the respective Populations, on 31st December, 1576. Victoeia, £11,275; New South Wales, £8,450; Queensland, £2,510; South Australia, £3,028; Western Australia, £367; Tasmania, £1,415 ; New Zealand, £5,355: total, £32,400.

Enclosure in No. 13. Memorandum of Agreement between the Governments of New South Wales and Victoria, on behalf of the Australasian Colonies, and New Zealand (hereinafter called " the Governments "), on the one part, and the Eastern Extension Australasia and China Telegraph Company, Limited (hereinafter called " the Company "), on the other. 4th December, 1878. That the Company shall, subject to the approval of the shareholders, contract with the Governments for the construction of a second cable from Singapore direct to Banjoewangie, and thence direct to Port Darwin, for an annual subsidy of £32,400, and shall sign the contract and necessary conditions on or before the Ist July, 1879. 2. That such subsidy shall be payable for a period of twenty years, subject, to the provisions hereinafter contained. 3. That the Company shall, throughout the whole of the period during which such subsidy shall be payable, maintain in full working order, the act of God or the Queen's enemies excepted, such second cable, and also its present lines of cable between Singapore and Batavia, and Banjoewangie and Port Darwin. 4. That the Company shall, before such subsidy shall become payable, lay a second cable between Singapore and Penang, and thereafter shall, in like manner, maintain the same, the act of God or the Queen's enemies excepted, and its present lines of cable between Singapore and Penang, Penang and Madras, Penang and Eangoon, in full working order.