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" In thanking you for your observations, which have been laid before the Lords Commissioners of the Treasury, I am desired to refer you to the answer given by Mr Jackson to Sir G BadenPowell in the House of Commons on the 12th ultimo in connection with this proposal. " I am, &c, " John Bbamston." Note.—On 12th June, in the House of Commons, Mr Jackson, in reply to Sir G. BadenPowell, intimated that Her Majesty's Government had not been able to accede to the proposal to join the Australian Governments in the proposed guarantee to the existing telegraph company On the 17th, Mr. Goschen further discussed the question with the Agents-General, and promised that the matter would be fully reconsidered, and a definite reply given. The above letter of 7th July, from the Colonial Office, goes to show that Her Majesty's Government remains in the position indicated by Mr. Jackson on 12th June. These letters were printed and forwarded to many leading Australians and New-Zealanders, along with the following : — " To Australians and Neiv-Zealanders. " Canadian Offices, 17, Victoria Street, London, S.W., " Fellow-colonists, — " 18th July, 1890. " I beg leave to address you on a subject of more than ordinary importance at the present moment, when your colonies are completely cut off telegraphically from the rest of the world. " The accompanying correspondence with Lord Knutsford refers to the traffic-revenue guarantee proposed to be given to the Eastern and Eastern Extension Telegraph Companies. I have the best authority for stating that my letter of 26th June fairly expresses the Canadian view of the case. " While the reply of the Secretary of State indicates that the Home Government declines to join in the guarantee, there is, as I am informed, some probability that the Australian Governments may, under force of circumstances, accept the terms offered by the existing telegraph companies. I venture, therefore, as a fellow-colonist, to point out that by co-operating with Canada a much more advantageous arrangement can be effected. " The proposed guarantee to the Eastern and Eastern Extension Telegraph Companies, it is estimated by the representatives of these companies, would add to the liabilities of the Australasian Colonies £54,000 more or less per annum. "The length of cable to reach across the Pacific from Canada to New Zealand and Australia, allowing 20 per cent, for slack, is estimated by competent authorities at 8,900 miles. A cable of the very best type can be laid over this distance for less than £1,750,000, it is perfectly safe, therefore, to take the outside cost in round figures at £1,800,000. " I have elsewhere given good reasons why this cable should be a public undertaking, owned by the Governments, worked and managed under a Government superintendent. "If so established, the whole capital, under a joint Government guarantee, could be raised at about 3 per cent., and would involve an annual charge of £54,000. " I have elsewhere given indisputable evidence that telegraph messages may be sent between England and Australasia by the Canadian route at less than one-quarter of the present rates. " I need scarcely ask which course should be followed. The question is, should a monopoly of telegraph business be built up in the hands of the existing companies, or is it in the public interest to establish an independent line, owned by the public, and under Government control? The one course would reduce the cost of telegraph messages to one-half the present rates, and add a liability to the Australian Colonies estimated at £54,000 per annum. The second course would reduce the cost of messages to one-quarter the present rates, and involve no heavier annual charges, while the £54,000 guarantee would be shared by Canada, and, I trust I may add, by the Mother-country Moreover, the cable would be owned by the contributing Governments, and the profits would accrue to reduce, perhaps eventually extinguish, the interestcharges. This is merely the financial view of the question, its momentous political aspect is dealt within my letter to Lord Knutsford (appended), and in other documents submitted to Her Majesty's Government. "The Admiralty has had in hand the work of sounding the new route since the beginning of 1888, so that there can be nothing to prevent the survey being completed during the manufacture of the cable, and the whole laid within two years. " At this moment, when the existing cables are broken down in three places, I feel it a public duty to submit the case as it now stands for your earnest consideration. I humbly think I have shown how you may speedily, and on easy terms, obtain cheap telegraphy and the incalculable advantages of an alternative line by the Canadian route. "I have, &c, " Sandfoed Fleming." This correspondence is incomplete without the following letter from Sir John Pender, and Mr Fleming's reply thereto :— Letter from Sir John Pender to Mr Sandford Fleming. "The Eastern Extension Australasia and China Telegraph Company (Limited), " Winchester House, 50, Old Broad Street, "Dear Me. Sandfoed Fleming,— "London, E.C., 22nd July, 1890. " I have read your circular letter of the 18th instant, together with the annexed correspondence with the Colonial Office on the subject of the recent unfortunate interruption of telegraphic communication with the Australian Colonies, and the establishment of an alternative route via