F.—s

4

become responsible for about £8,324, making our total liability under intercolonial cable and general guarantees, £14,298. These figures do not allow for increase of traffic. If reduced rates adopted, we look for a decided increase in international traffic, and probably a fifty-per-cent. increase in intercolonial business. Cheapening the intercolonial cable rates as proposed should be of decided benefit to Victoria, not only to its business people, but as tending to develop a large domestic cable business as well, which is impossible under existing high tariff. The adoption of my proposals by the colonies, I need scarcely add, will be the direct means of New Zealand joining the general guarantee, a desideratum the colonies have been so anxious to see accomplished. My telegram of last night advised you that South Australia had a,greed to proposals, and I trust that your colony will now be able to send similar answer. Important I should learn your decision as soon as possible. An early answer will therefore be appreciated.

No. 10. The Hon. the Minister for Education, Adelaide, to the Hon. J. G. Ward, Wellington. (Telegram.) Adelaide, 9th August, 1892. For what period is your agreement re cable guarantee proposed?

No. 11. The Hon. the Postmaster-General, Wellington, to the Hon. J. H. Gordon, Adelaide. (Telegram.) Wellington, 10th August, 1892. Cable guarantees : From year to year.

■■- ■ ■ No. 12. The Postmaster-Geneeal, Perth (W.A.), to the Hon. the Postmaster-General, Wellington. (Telegram.) Perth, 12th August, 1892. Am disposed to recommend your proposal re cable rates; but I certainly think you should also join other colonies in duplicate cable subsidy, and so simplify matters.

No. 13. The Hon. the Postmaster-General, Wellington, to the Postmaster-General, Perth. (Telegram.) Wellington, 12th August, 1892. Thanks for telegram. Unable to agree to share duplicate cable subsidies. At Sydney Postal Conference, 1891, as an inducement to New Zealand to join in general guarantee, other colonies prepared to bear whole cost duplicate subsidies.

No. 14. The Hon. the Postmaster-General, Melbourne, to the Hon. the Postmaster-General, Wellington. (Telegram.) Melbourne, 15th August, 1892. Following resolution passed at Conference to-day : That the proposal by the Government of New Zealand to join the Colonies of New South Wales, Victoria, South Australia, Western Australia and Tasmania the present guarantees to the Eastern Extension Cable Company and the Government of South Australia, be accepted by the colonies. Eesolution also passed recommending increase in rate on Foreign telegrams from Adelaide from four shillings to four shillings and ninepence per word, increase to take effect from Ist October next, the extra ninepence per word to be apportioned as follows : to cable companies, sevenpence; to South Australia, twopence. Letter to follow.

No. 15. The Manager in Australasia for the Eastern Extension Telegraph Company to the Secretary, General Post Office, Wellington. (Telegram.) Melbourne, 16th August, 1892. Postmaster Victoria deputed to inform Mr. Ward that his proposal to join in general guarantee approved and accepted by Conference. Following resolutions submitted by Mr. Kidd were also approved : First, that in view of the heavy loss sustained by the principal colonies in connection with the cable guarantee dated thirty-first March, eighteen ninety-one, it be a recommendation to the respective Governments concerned that the following alteration in the tariff be adopted, with the concurrence of the Eastern Extension Company, and brought into operation on the first October next—viz., ordinary messages to be increased from four shillings to four and ninepence per word; Government and Press rates to remain unaltered. Second, that the extra cost of ninepence per word be apportioned as follows: Cable companies, sevenpence ; South Australia, twopence. Mr. Kidd estimates the increased revenue from this extra ninopence per word would be about thirtygeven thousand four hundred and twenty-nine pounds, leaving a probable loss of only seventeen