F.—B.

I note that the deficiency for the year is estimated at £92,100, an amount which, I would point out, largely exceeds previous estimates, and is considered to be far in excess of what might have been expected had the undertaking been conducted throughout on something approximating a commercial basis. The Government cannot but regard the quiescence of the Board while the rival company was scouring the country for business as inimical to the interests of the Pacific cable, and is strongly of opinion that the indifference displayed has resulted in a great deal of the traffic which would otherwise have gone via Pacific being diverted to the Eastern route. It is hoped, however, that the recent action of the Board in arranging for a systematic canvass for business will show a revenue for the year ending the 31st March next much in excess of the estimate. I have, &c, J. G. Ward, For the Prime Minister. The Hon. W. P. Beeves, Agent-General for New Zealand, London.

No. 121. The Inspectob of Telegbaphs, Auckland, to the Supebintendent of Electric Lines, Wellington. (Telegram.) Auckland, Ist June, 1903. No. 3 has now been extended from Mangontii to Doubtless Bay.

No. 122. The Superintendent, Pacific Cable Station, Doubtless Bay, to the Seceetaby, General Post Office, Wellington. (Telegram.) Doubtless Bay, 3rd June, 1903. Mangonui County Council has sent me rate notice for £30. Presume Pacific Cable Board is not exempt? Please reply.

No. 123. The Sbcebtaby, General Post Office, Wellington, to the Superintendent, Pacific Cable Station, Doubtless Bay. (Telegram.) Wellington, Bth June, 1903. Youe Board not exempt from payment Council rates.

No. 124. The Supeeintbndent, Pacific Cable Station, Doubtless Bay, to the Seceetaey, General Post Office, Wellington. (Telegram.) Doubtless Bay, 22nd June, 1903. Customs demand duty on piano and billiard-table landed ex "Iris," no charge being made at Norfolk. Would you kindly ascertain if Board liable ?

No. 125. The Sbceetaey, General Post Office, Wellington, to the Supeeintbndbnt, Pacific Cable Station, Doubtless Bay. (Telegram.) Wellington, 26th June, 1903. Youk telegram 22nd: Board is liable for duty on billiard-table and piano. Arrangement under which stores and furniture were admitted free specifies that the term " stores and furniture " is to be understood to be telegraph stores and furniture, and not supplies for the use or maintenance of officers of the Board stationed in New Zealand.

No. 126. The Officer in Charge, Telegraph Office, Dunedin, to the Sbceetaky, General Post Office Wellington. (Telegram.) Dunedin, Ist July, 1903. Pleased to inform you that a cablegram for San Francisco via Pacific handed in here at 10.9 this morning was despatched to destination and reply received at 11.30, or 1 hour 21 minutes in all for message to be forwarded to San Francisco and delivered and reply sent here. Sixteen minutes of that time was occupied on New Zealand land-lines.

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