21

E.—4

D.—STATEMENT showing the Distance between London and Port Darwin, with Cost of Proposed Ten-word Message.

lII.—As to New Zealand Cable.

No. 2. Eastebn Extension Australasia, and China Telegeaph Company (Limited) to the Hon. J. Vooel. Sib,— 66, Old Broad Street, London, 8.C., 23rd April, 1875. Having carefully considered the propositions made by you, in our conversation yesterday, with reference to the cable between New Zealand and Australia, I regret that the terms you mentioned are so unfavourable to this Company, involving as they would a large annual loss, that I am unable to recommend them for acceptance. I must, therefore, adhere to the terms of which Colonel Glover sent you a copy on the 19th instant. I am, however, as I stated to you, most anxious to facilitate an agreement that will be both fair to my shareholders and advantageous to your Government. "With this view, lam prepared to agree to a reduced tariff between New Zealand and Australia of 7s. 6d. for ten words, with a proportionate increment for each additional word, on receipt of an annual subsidy of £10,000 for ten years. The above tariff is the cable charge only, and does not include those of the Governments on either end of the cable. "With regard to the tariff to England, the Company have already agreed to a proposal of several of the colonies in Australia to reduce the present tariff to £3 ss. for ten words, with a proportionate charge for each additional word, on receipt of an annual subsidy of £25,000 per annum ; but this can only bo done on the joint and united action of the several Governments, or by a guarantee from one or more of them of the payment of the whole amount. It will be impossible to allow any one Government to enter into this arrangement on payment of its proportion, as it would admit of the other nonadhei'ing colonies taking advantage of the reduced tariff to the detriment of the Company. The Company would undertake to lay this cable within twelve months from the date of signing the agreement, unless prevented by accident or other cause over which they have no control. During this interval, there will be ample time for the colonies to agree on their policy as to the payment of this subsidy, so that the New Zealand cable might be opened with the introduction of the reduced tariff. As, however, the Conference of all the Telegraphic Administrations takes place in June next at St. Petersburg, when it is the custom to lay down the tariffs which will be in force during the existence of the Convention, it would be a great object if we could ascertain in time for this meeting whether the several Australian colonies would agree to this subsidy or not, as we should then be prepared to propose the reduced rates, so that we might thereby anticipate the time of their introduction. I have, &c, John Pendeb, The Hon. Julius Vogel, C.M.G., Premier of New Zealand. Chairman.

No. 3. Statement of Teems referred to in the preceding Letter. The Company are willing to lay a cable between New Zealand and Australia, without guarantee or subsidy, subject to the following conditions :— 1. That the Government of New Zealand agree not to subsidize or guarantee, or otherwise promote or foster, any opposition scheme, nor to give any such scheme any advantages directly or indirectly. 2. In case an opposition cable should be laid, the undirected messages to be forwarded by this Company's cable so long as the tariffs are equal by either route. 8. That the Company be at liberty to land, either in Victoria or New South "Wales, at their option [giving preference to that colony which will facilitate the Company's messages being transmitted throughout by the Company's own lines without a charge for the via]. 4. That land be granted for stations, offices, cable-houses, and store-houses necessary for the Company's operations. 5. That the Government undertake to make and maintain necessary connection between the Company's terminus and their own system.

Land Lines. Cable. jondon to Porthcurno ... 'orthcurno to Malta tfalta to Alexandria Llexandria to Suez !uez to Bombay 5ombay to Madras Madras to Singapore 300 Miles. 2,430 Miles. 818 „ 200 „ 3,007 „ 800 „ Grand total, 11,682 Miles. 1,679 „ ava Lustralian Cable 800 „ 1,648 „ Total Miles 2,100 >> 9,582 » Tariff for 10 words between London and Port Di irwin, £3 5s., or at the rate of 7d. >er 100 miles for 10 words.