F.—No. 4.

8

RETORT OE THE SUBMARINE

the joint support of your Government, and that of the neighbouring colonies, in subsidizing by a fixed annual payment, or in guaranteeing iuterest on the cost of such undertaking. Since that date the principal difficulties in the way of effecting that communication have been removed, and the time seems now to have arrived for taking action in the matter. The sea between Java and the North coast of Australia has been minutely surveyed by H.M.S. " Serpent " and " Salamander," with this result, that instead of a deep gorge, which was supposed to exist, the most suitable soundings have been discovered for the submersion of a telegraph cable in that direction. The telegraphic land lines in Queensland, in connection with the general system of telegraphs in Australia, can at any time, on a few months' notice, be extended to Burke Town, at the head of the Gulf of Carpentaria. The land lines of the Government of Netherlands-India, in the Island of Sumatra, are slowly progressing towards completion, and can at any time be pushed forward to Siak, which is proposed to be the point of connection with the European system. You are no doubt aware that it is mainly owing to the enterprise and perseverence of the Telegraph Construction and Maintenance Company (Limited) of London, that the world is indebted for the ultimate success in laying a submarine cable between England and the United States of America, and that this Company is now engaged in laying a second cable to connect France with New York, 3,600 miles long. Besides these works of magnitude, the same Company has also laid, in connection with the Indian communication, a second cable for the Anglo-Mediterranean Telegraph Company, between Malta and Alexandria, and has further contracted to lay, by Christmas next, another cable of 3,600 miles long, between Suez and Bombay, by which, when once laid, all uncertainty as to the correct and regular transmission of messages from India to England, and vice versa, will be at an end. Between Bombay and Calcutta the telegraph land lines are now said to be in the best working order. Between Calcutta and Moulmein the working of the land lines has been unsatisfactory, and these will now either be greatly improved or abandoned, and a submarine cable laid in this direction. Further, from Moulmein the Telegraph Construction and Maintenance Company has undertaken to carry out, under concessions obtained by the Eastern-Asia Telegraph Company, and since made over to them, — 1. Aland line to Bangkok (Siam), and a further extension,under subsidy from the French Government, to Saigon (Cochin China), whence to China it is proposed to lay a submarine cable; and— 2. To complete the communication between Moulmein, Penang, Malacca, and Singapore entirely by land, or partly by land and partly with submarine cable. Both these works will be undertaken almost immediately. Two links then only remain in the great chain of telegraphic communication between Europe and Australia, which have to be connected by submarine cable, and for the construction of which no arrangements have yet been made —one between Malacca and Siak, a distance of about 100 miles, partly in the Straits of Malacca and partly in the Siak Eiver, which has been thoroughly surveyed by the Java Government for this purpose ; the other link between Pampang Bay, about 15 miles from Banjoewangie, on the East coast of Java, and Burke Town, in the Gulf of Carpentaria, a distance of about 2,000 miles, with an intermediate station at Poeloe Semaauw, close to Timor Koepang; and should this be required by the Government of South Australia, another station can be established at a convenient point on their northern territories, in connection with the settlement proposed to be established there. It is computed by the Telegraph Construction and Maintenance Company that the entire cost of laying these two cables, together about 2,100 miles long, will amount to between £550,000 and £600,000, for which a guaranteed interest of 7 per cent., or a fixed annual subsidy of £34,000 for thirty years, is required to procure the capital above stated ; and their assistance and co-operation are pledged to me in obtaining this capital and in laying the cables in question simultaneously with the other extensions before referred to, in event of my being fortunate enough to secure from tho Government of Netherlands-India and the Colonial Governments in Australia suitable concessions for the purpose, on the terms above specified. To the Government of Netherlands-India I have already applied for the necessary provisional concession for laying these cables within their territories, under an annual subsidy, or guaranteed interest of the actual cost, at their option, equal to one-half of the entire amount of subsidy or guaranteed interest before stated ; and my intention is, if this application is favourably received, of which I have every hope, to address the several Colonial Governments of South Australia, Victoria, New South Wales, and Queensland, for a joint concession of similar import, and under similar financial engagements. My object at present is simply to give you notice of these proceedings, and to prepare you for the definite proposal which I hope shortly to be able to make to your and the other Colonial Governments ; and, considering tho important advantages involved in the project, I have every hope that my proposals, when formally made, may be well received, and lead to the early completion of this great work of international telegraphic communication. I have, &c, The Colonial Secretary, Queensland. Alex. Frasee.

Minute by the Superintendent of Electric Telegraphs. I wouLn recommend this Government to enter into an arrangement, in conjunction with the neighbouring Colonies, guaranteeing 7 per cent, interest on the cost of construction, if the Government of Netherlands-India will guarantee 7 per cent, for half the cost of the cable. I cannot recommend an annual subsidy, as, from calculations I have made, I believe the line will more than cover its working expenses and the 7 per cent, guarantee.