F.—4

18

ll.—As to the proposed two Cables.

2. We have to remind you that the negotiations for carrying out tbe> arrangements for a second cable communication with Australia and New Zealand via Queensland, were brought to an end by yourselves, by your expressing your entire inability to carry out the preliminary agreement entered into by your agent at Sydney, and which, from time to time, that gentleman frequently gave the various Governments to understand you were willing to carry out. 3. Tour inability to carry out the agreement made on your behalf gives you no claim on the colonies, but the reverse; nor did you, when the negotiations were broken off, assert any such claim. Had you done so, we should have told you we did not recognize it. We must, therefore, decline to give you the information you seem to demand by your letter. We have, &c, Julius Vogel. Messrs. Siemens Brothers. Daniel Cooper.

lII.—CORRESPONDENCE RESPECTING- A CABLE PROM NEW ZEALAND TO NEW SOUTH WALES, AND RESPECTING REDUCED RATES BETWEEN ENGLAND AND AUSTRALIA. No. 1. The Managing- Dieectoe, Eastern Extension Australasia and China Telegraph Company (Limited), to the Hon. J. Vogel. My dear Mr. Vogel,— 66, Old Broad Street, London, E.C., 20th April, 1875. I enclose you, as I promised, a copy of my letter to Mr. Boothby. As I told you to-day, I was not quite clear, without reference to this letter, what our proposed tariff for ten words to Australia was, and spoke to you on the assumption that we had agreed to a rate of £5 for twenty words, or £2 10s. for ten words, from Port Darwin; but I find that what we actually agreed to was £6 10s. for twenty, or £3 ss. for ten words. The manner in which this amount is made up is fully detailed in the tables annexed to the letter, which show the proportions that this Company would get, and what it would pay to the different administrations en route. As far, therefore, as I see, it would be utterly impossible for us to agree to any tariff at a £2 10s. rate from Sydney, as we should have to pay from it as follows:— Indo-European ... ... ... ... ... ... £18 0 Indian Government ... ... ... ... ... ... 040 Dutch Government ... ... ... ... ... ... 040 £1 16 0 which leaves 145.; and, as we should have to pay at least 10s. to the South Australian Government for transiting the Continent, you see the cable would get the large sum of 4s. only. I am, however, getting out figures, and will let you know what we may be prepared to take. With regard to the amounts of the subsidies you have offered, I was of opinion that we had asked only £20,000 from Mr. Todd, but I see that it was £25,000; so that I fancy the terms you mentioned would have to be considerably increased. I think my letter to Mr. Boothby is as full and complete as it is possible to be, as I have endeavoured to be frank with him and let him see my difficulty, and yet our desire to assist him if possible; and I hope it may show the same to yourself. I have spoken to Mr. Pender, and he proposes to call upon you at eleven o'clock on Thursday, as he has an engagement at one. Should you be at liberty at eleven, we will come. Should it not be convenient, however, please to let me know by telegraph. Yours very truly, T. G. Gloveb, The Hon. Julius Vogel, C.M.G. Managing Director. P.S.—I see that the terms you agreed to give to Siemens were 40s. from Australia to Singapore alone, for twenty words, which would be £1 for ten ; and as it would cost him at least 10s. to India and 4s. through India, and £1 Bs. beyond, roughly at the lowest calculation he could not give you a tariff of less than £3 25., which is practically what I agreed to with the South Australian Government.

lII.—As to New Zealand Cable.

Enclosure. Eastebn Extension Australasia and China Telegraph Compant (Limited) to Mr. Boothby. Sib — 66, Old Broad Street, London, E.C., 15th May, 1874. I have the pleasure to acknowledge your letter of the sth December. I have been prevented doing so before, as it was necessary to enter into negotiations with the several Governments and companies which form links in the chain of communication between Australia and England. As soon, however, as I had completed these negotiations, I telegraphed to you on the 20th March last, making a distinct proposal; and I have since sent two other messages, dated 31st March and 30th April, the one slightly modifying my first proposal, and the other being in reply to a reference from Mr. Todd. 2. I had hoped these messages would have been sufficiently explicit, and had not, therefore, supposed it necessary to write also; but as, from subsequent telegrams, lam informed that Mr. Todd