D.—4a

1885. NEW ZEALAND.

EAST AND WEST COAST (MIDDLE ISLAND) AND NELSON RAILWAY (COPIES OF TELEGRAMS RELATIVE TO PROPOSED AGREEMENT WITH MESSRS. MEIGGS & SONS)

Laid on the Table by the Hon. Mr. Stout, wivh leave of the House.

Mr. Scott to Sir Julius Vogel. London, 10th July, 1885. Pbovisional arrangements made subject to further concessions. Very important submit personally. What latest date Fell Dobson arrive, and get Bill through House ?

The Colonial Teeasubeb to the Agent-Geneeal. Wellington, 13th July, 1885. Tell Scott unlikely delegates return before session closing. . Better cable concessions required. Cable your opinion strength syndicate, names principal men.

The Agent-Geneeal to the Colonial Teeasubee. London, 15th July, 1885. Delegates. Yours thirteenth. Firstly, requested delegates report exact present position their negotiations, which they have done as follows. Report begins : Meiggs and Sons, South American contractors and financiers, of good standing and repute, have agreed in writing take contract, probably completing works in three to five years, provided absolute Government guarantee given of £97,000 payable in London half-yearly above working expenses for twenty years dating from completion works; this being 2-J- per cent, upon estimated cost, namely—works with contingent margin, £3,025,000 ; interest during construction, £400,000 ; syndicate allowances for underwriting, £385,000; engineers and administration, £50,000 : total, £3,860,000. Government allowed control over working by appointing half local directors for managing railways but not land. Government to have full power purchase railways any time at full cost as above, less depreciation, any further works being paid for at valuation. Powerful financial houses known to delegates promise support and ready take substantial interest if concessions granted. Report ends. Secondly, no syndicate yet formed.

The Colonial Teeasubeb to the Agent-Geneeal. Wellington, 17th July, 1885. Railway. Understand yearly payment not commence until entire line completed; also Government retain surplus over working expenses whilst yearly payment continues. Reply also, are other special features required in Bill besides those cabled ?

The Agent-Genjebal to the Colonial Teeasueeb. London, 17th July, 1885. Delegates. Yours to-day. Reply on first question you are right. Reply on second question and reply on third question Monday.

The Agent-Genekal to the Colonial Tkeasureb. London, 21st July, 1885. Delegates cannot reply on second question yet. Do not act till you have received it.