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not only unreasonable, but would be most injurious to the existing system, which would thereby risk a further loss of £90,000 a year, in addition to the heavy losses from which it is now suffering in consequence of the last reduction of tariff. In conclusion, I wish it to be distinctly understood that it is not my desire to oppose the laying of submarine cables, but rather to facilitate their extension wherever needed, and as soon as the Governments concerned have decided upon the laying of a Pacific cable, and the requisite data are forthcoming to admit of the work being successfully accomplished, I shall be most happy to enter into negotiations for carrying out their wishes in the matter I have, &c, John Pendee, Chairman. The Hon. Mackenzie Bowell, Minister of Trade and Commerce, Ottawa.

No. 27 The Hon. the Postmastee-Geneeal to the Chaieman, Eastern Extension Company Sir,— General Post Office, Wellington, 20th December, 1894. I have the honour to acknowledge the receipt of your letter of the 26th October last, and to thank you for the copy of a letter addressed by you to the Hon. the Minister for Trade and Commerce, Ottawa, in reference to his public invitation for tenders for a Pacific cable, which you were good enough to send therewith. I have, &c, J. G. Waed, Sir John Pender, K.C.M.G., Postmaster-General. Chairman, Eastern Extension Australasia and China Telegraph Company (Limited), 50, Old Broad Street, London, E.C.

No. 28. Peivy Council, Canada Exteact from a Eepoet of the Committee of the Honourable the Pkivy Council, approved by His Excellency on the 7th December, 1894. The Minister of Trade and Commerce submits the annexed report of Mr Sandford Fleming, C.M.G., and Mr W H. Mercer, on their visit to Hawaii, made under instructions contained in an Order in Council dated the 10th September, 1894. The Committee, on the recommendation of the Minister of Trade and Commerce, advise that your Excellency be moved to forward a certified copy of this minute, and of the report thereto attached, if approved, to the Eight Hon. the Principal Secretary of State for the Colonies, and to the Governors of the several Australasian Colonies and of the Cape of Good Hope. John J McGee, Clerk of the Privy Council. [For enclosures see Enclosures 1., 11., 111., V and VI. in No. 32.]

No. 29. Privy Council, Canada Bxteact from a Eepoet of the Committee of the Honourable the Peivy Council, approved by His Excellency on the 7th December, 1894. The Minister of Trade and Commerce submits the annexed letter from Mr Sandford Fleming, C.M.G., dated the 19th November instant in reference to the desirability of further surveys being made of Nihoa, or Bird Island, with a view to ascertaining whether it be suitable for a mid-ocean landing-place of the proposed Pacific cable. The Committee, on the recommendation of the Minister of Trade and Commerce, advise that your Excellency be moved to forward a certified copy of this minute, and of the papers thereto attached, to the Eight Hon. the Principal Secretary of State for the Colonies for transmission to the Admiralty, with a request that the suggestions made by Mr. Fleming may be complied with all which is respectfully submitted for your Excellency's approval. John J McGee, Clerk of the Privy Council.

Enclosure in No. 29 Mr. Sandfoed Fleming to the Hon. Mackenzie Bowell. Deae Mr Bowell, — Ottawa, 19th November, 1894. In my report to His Excellency the Governor-General on the mission to Honolulu I pointed out among other things that I had personally visited Bird Island, an uninhabited island 150 miles nearer Honolulu than Necker Island. I was aware that H.M.S. "Champion" had left some six weeks before I reached Honolulu to make a survey around Necker Island, but the ship had not returned, and the result of the survey was not known. I enclose a sketch [not reproduced] of Bird Island, with soundings made by Captain May, of H.M.S. "Hyacinth," during the short period we were there. This suggests that a further examination should be made, especially on the south side of Bird Island, where some shelter obtains, and likewise to ascertain the limits of the bank which surrounds the island. As Bird Island is considerably nearer Honolulu than Necker Island, and possesses other advantages for a mid-ocean telegraph-station, I think it important that a further and more perfect examination should be made, whatever the result of the Necker Island