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Enclosure in No. 3. The Assistant Under-Secretary of State, Colonial Office, to the High Commissioner. Sir,— Colonial Office, S.W., 7th September, 1910. I am directed by the Earl of G'rewe to transmit to you a copy of a letter from the Treasury on the subject of the expenses incurred in connection with the Pacific Cable Board for the year 1909-10, and to inquire whether the High Commissioner can arrange to pay to the Imperial Treasury the sum of £6,620 18s. 6d., being the amount due from the Government of the Dominion. 2. I am to add that copies of the paper enclosed in this letter have been forwarded to the Government of the Dominion. I am, &c, The High Commissioner for New Zealand, London. C. P. Lucas.

Sub-enclosure 1 in No. 3. The Secretary to the Treasury to the Uxder-Secretary of State, Colonial Office. Sir, — Treasury Chambers, 27th August, 1910. I am directed by the Lords Commissioners of His Majesty's Treasury to acquaint you, for the information of the Earl of Crewe, that the Pacific Cable Board's account of the expenses of the cable for the year ended the 31st March last has now been audited. A copy of the auditor's report is enclosed herewith, from which it will be seen that the deficit on the working of the cable for the year in question amounted to £59,588 6s. 7d., and the sums therefore recoverable from the colonial Governments are as follows :— „ , X S. < 1. Australia (six-eighteenths) ... ... ... ... 19,862 15 6 Canada (five-eighteenths) ... ... ... ... ... 16,552 (i 3 New Zealand (two-eighteenths) ... ... ... ... 6,620 18 0 £43,036 0 3 I am accordingly to request that you will move the Secretary of State for the Colonies to communicate with the colonial Governments concerned, in order that these amounts may be paid as soon as practicable to the credit of the account of the vote for telegraph subsidies and Pacific cable. of the printed account as presented to Parliament is also enclosed. I am, &c.. The Under-Secretary of State, Colonial Office. . G. H. Murray.

Sub-enclosure 2 in No. 3. The Auditor to the Treasury, London, to the Secretary to the Treasury, London. Sir, — Treasury Chambers, 28th July, 1910. I have the honour to report that I have audited the accounts of the Pacific Cable Board for the year ended 31st March, 1910, in accordance with the instructions conveyed in their Lordships' minute of the 17th April, 1902, and have found them correct. The annual expenses of the cable, as defined in section 3 (2) of the Pacific Cable Act, 1901, so far as they were not met out of the receipts arising in connection with the cable, amounted in the year ended 31st March, 1910, to £59,588 6s. 7d. and a sum of £43,036 os. 3d., representing thirteen-eighteenths of the net expenditure, is, therefore, recoverable from the contributing Governments, viz. : — £ s . d Australia (six-eighteenths) ... ... ... ... 19,862 15 6 Canada (five-eighteenths) ... ... ... ... ... 16,552 6 3 New Zealand (two-eighteenths) ... ... ... ... 6,620 18 6 £43,036 0 3 I beg to submit that the accompanying account, which has been duly certified, be presented to Parliament, in compliance with section 7 of the Pacific Cable Act, 1901. I have, &c, The Secretary to the Treasury. G. H. Hunt, Auditor.

Enclosure to Sub-enclosure 2 in No. 3. The Chairman, Pacific Cable Board, London, to the Secretary to the Treasury, London. Queen Anne's Chambers, Tothill Street, Westminster, London, Sir,— 27th July, 1910. I have the honour, on behalf of the Pacific Cable Board, to submit, in the form hitherto adopted, the following accounts : (i) The sum issued out of the Consolidated Fund, and the expenditure of the Board on Capital Account; (ii) the money borrowed and the securities created; (iii) the aggregate amount of capital expenditure up to the 31st March, 1910; (iv) the expenses of the cable in the year ending 31st March, 1910; (v) the account of the Provident Fund; and (vi) the account of the Reserve and General Renewal Fund.