F.—s.

No. 3. The Hon. the Postmaster-General, Wellington, to the Hon. the Postmaster-General, Melbourne. Post Office and Telegraph Department, General Post Office, Wellington, Sir,— 7th October, 1892. I have the honour to enclose copy of, and hereby confirm, my telegram to you of the 28th July last [vide No. 3, F.-5, 1892], in connection with proposals for reducing the rates on the New Zealand and Australian cable. I have also to signify my concurrence in the proposal of the Postal and Telegraph Conference, agreed to on the 15th August last, that the rate on European telegrams should be raised by 9d. I send herewith copy of paper No. F.-5, 1892, relating to the negotiations for reducing the charges, which has now been laid before Parliament. I have, &c, J. G. Ward, Postmaster-General. The Hon. the Postmaster-General, General Post Office, Melbourne.

No. 4. The Manager in Australasia, Eastern Extension Company, to the Hon. the PostmasterGeneral. The Eastern Extension Australasia and China Telegraph Company (Limited), Sir,— Melbourne, 3rd October, 1892. I have the honour to forward you copy of the new schedules [see Enclosure 1 in No. 35] of international rates, and beg to be advised, as early as possible, whether they meet with your approval. I have, &c., Wm. Warren, The Hon. the Postmaster-General, Wellington. Manager in Australasia.

No. 5. Mr. Gray to Mr. Warren. (Telegram.) General Post Office, Wellington, 10th October, 1892. Draft Cable Agreement, clause three.—As other colonies join in intercolonial cable guarantee, the fact should be set out in this clause, giving proportions payable by New Zealand and other colonies. Clause five: The proviso is objected to, and should be struck out. This objection also applies to European cables.

No. 6. Mr. Warren to Mr. Gray. (Telegram.) Melbourne, 13th October, 1892. Following is a reply from Chairman to your message : " As New Zealand cable reductions more particularly concerned New Zealand Government and Company, it was thought better when drafting agreement to limit arrangement to two parties, leaving appointment of New Zealand share of risk to be dealt with by separate agreements between New Zealand and other Governments, as was recently done with divisions South Australian loss and Tasmanian subsidy. If, however, Government prefer all guaranteeing Governments being included in this agreement, Company are quite prepared to make necessary alteration, but they cannot waive provisions Article 5, as principle long recognised by all guaranteeing Governments. See Article 10, Subsidy Agreement, May, 1879; Article 3, Tasmanian Agreement, March, 1889; and Article 5, of guarantee agreement [see Enclosure in No. 2] entered into last year; and we consider it perfectly reasonable provision under circumstances contemplated."

No. 7. Mr. Gray to, Mr. Warren. (Telegram.) General Post Office, Wellington, 19th October, 1892. Cable agreement, and your services thirteenth : Hon. Mr. Ward sees no objection to schedule showing proportions payable by colonies for both European and international cables being attached to agreement, but does not think separate schedule for each colony required. Proviso in clause five must be expunged before Mr. Ward will sign. He altogether refuses to recognise the principle under which New Zealand is sought to be made liable for cost of repairs. When are reduced rates to come into force ? Mr. Ward very anxious to know, in order that public may be definitely advised and business firms given time withdraw from existing arrangements.

No. 8. Mr. Warren to Mr. Gray. (Telegram.) Melbourne, 20th October, 1892. Cannot say at present when new tariff likely come into operation. No notice yet received from colonies that agreement and schedule approved, and your objection to clause five which is included in all other agreements is likely further delay settlement.

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