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No. 22. His Excellency the Governor to the Right Hon. the Secretary of State for the Colonies. Sir, — Government House, Wellington, New Zealand, 2nd July, 1914. I have the honour to acknowledge the receipt of your despatch of the Bth May, forwarding copy of a despatch, from the Governor-General of the Dominion of Canada on the subject of the Pacific cable terminal charges. 2. In acknowledging the receipt of the information contained in the enclosure to your despatch, the Postmaster-General of my Government makes the following observations : " It is noted that Canada approves of the principle that the gross revenue from the Pacific cable terminal charges, less the amount chargeable at urgent inland rates, be included in the Pacific cable accounts, and is of opinion that Australia should be urged, as a matter of equity, to accept this proposal." I have, &c, , Liverpool, Governor. The Right Hon. Lewis V. Harcourt, P.C., &c, Secretary of State for the Colonies.

No. 23. The Right Hon. the Prime Minister to the High Commissioner. (Telegram.) Wellington, 3rd July, 1914. Pacific cable terminal rate : If proposed reduction ordinary cable rate not upheld Dominion must seriously consider payment terminal rate equal that charged by Australia. Atlantic cable: If you regard terms favourable Dominion desire you support proposed lease cable from Western Union Company.

No. 24. The High Commissioner to the Right Hon. the Prime Minister. (Telegram.) London, 28th July, 1914. At meeting of the Pacific Cable Board to-day I moved that resolution passed by Board February last [see No. 5, F.-8, 1914], referring to reduction of 4d. word on New Zealand cable messages, be given effect to as from Ist August next. Found it could not be carried. Best I could do was secure following:— " Board recognizes it as inequitable, that in case of New Zealand traffic Board should receive Is. lid. for the same service as that in case of Australian traffic it received Is. 7d. for. Board resolves that further representation be made to Commonwealth Government on subject of Australian terminal rate with a view to securing reduction present tariffs for Australia and New Zealand. Resolves, further, that if it is not in position to bring into force such reduction both for Australia and New Zealand by the end of current financial year, rate between United Kingdom New Zealand be reduced to 2s. Bd. word from Ist April next." This is satisfactory to extent that Board acknowledge inequitableness to New Zealand of present rate, and definitely fixes date for reduction. It may lead to greater reduction all round than indicated in motion, as some members of Board favourable, notably Canadian representatives.

No. 25. The Right Hon. the Prime Minister to the High Commissioner. (Telegram.) Wellington, 23rd December, 1914. Failing Cable Board reducing rate to 2s. Bd., this Government proposes in immediate future to increase terminal rate to sd. Inform Board.

No. 26. The High Commissioner to the Right Hon. the Prime Minister. (Telegram.) London, sth January, 1915. Pacific cable : With reference to your telegram of the 23rd December, rate between United Kingdom New Zealand will be reduced to 2s. Bd. from Ist April next, as stated in" my telegram of 28th July, and efforts being made obtain simultaneous reduction in Australian rate. Full memorandum Chairman Pacific Cable Board submitted Imperial Government November is going to you by to-day's mail [see sub-enclosure to enclosure 1 in No. 27].

No. 27. The High Commissioner to tlie Right Hon. the Prime Minister. Westminster Chambers, 13 Victoria Street, London S.W., Sir, — sth January, J 915. Referring to my letter of the 29th July [not printed], I have the honour to acknowledge the receipt, on the 23rd ultimo, of your cablegram reading as under [see No. 25].