3

E.—4

for any loss or damage which the colonies may sustain in consequence of delay in completing the said cables, in the event of such delay being caused by war, inevitable accident, or other contingency over which the Company can have no control. 7. That, in the event of the Company completing and having the duplicate cable above mentioned open for communication within the period herein contracted for, the subsidy payable by the Government shall commence and accrue four months after the signing of the contract; but the Company shall not be entitled to any payment under this clause until the said cables shall have been actually completed, and are open for communication as above stated. 8. That the said subsidy shall bo payable quarterly in London to the Compauy in sterling money, free of all deductions. 9. That in the event of any total interruption in the communication between Port Darwin and Singapore the subsidy shall cease pro rata for the period of such interruption: Provided that if the interruption be caused by reason of war or auy such like cause the subsidy shall continue, but the Company shall be bound to restore such communication at the request and cost of the Governments. 10. The Company shall at all times hereafter give priority in transmission through tho said cable to all Government messages ; being such as are exchanged between Her Majesty's Priucipal Secretary of State for the Colonies or the various Agents-General on the one hand, and the Governors or Chief Secretaries of the various colonial Governments on the other, on matters relating to the administration of the Governments. 11. Press messages must be addressed to registered newspapers only, and shall be for bond fide publication in full. Tlrey must be in English, iv plain language, and intelligible ; no cypher, code, groups of figures or of letters, or words of concealed meaning to be used. 12. The Company shall not during the currency of this agreement increase its own proportion of the charges for messages exchanged between Port Darwin aud London beyond the rates provided for herein, viz. : — s. d. Eor Governmental messages, per word ... ... ... ... 2 10 For Press messages, per word ... ... ... ... ... 1 5 For all other messages, per word ... ... ... ... ... 5 8 13. That the Government shall have the right, during the currency of the subsidy aforesaid, to purchase the Company's cable, lines, and other property between Singapore aud Port Darwin, on equitable terms, to be fixed in case of difference by arbitration; twelve months' previous notice to be given to the Company of the intention to exercise this right: Provided always that the right shall not be exercisable till the Company shall for five years have paid a dividend equal to 10 per cent, per annum, or shall for that period have passed 10 per cent, per annum to its Reserve or other Accumulated Fund. J. F. Burns, Witness to signature— New South Wales. S. H. Lambton. Graham Berry, Witness to signature— Victoria. W. H. Odgers. T. G. Glovir, Witness to signature— Eastern Extension Australasian and China T. Bawden. Telegraph Company. Dated this 4th day of December, a.d. 1878.

No. 3. The Postmaster-General, Sydney, to the Postmaster-General, Wellington. (Telegram.) Sydney, 29th May, 1879. Company has asked what colonies contribute to subsidy for duplication cable, in order that reduced rates upon Government and press messages may be charged. Do not find your assent in papers after first negotiation fell through. Please intimate your assent, in order that arrangements may be carried out. Saul Samuel, The Hon. the Postmaster-General, Wellington. Postmaster-General.

No. 4. The Telegraph Commissioner, Wellington, to the Postmaster-General, Sydney. (Telegram.) Wellington, 31st May, 1879. New Zealand joins in scheme for duplication as finally proposed as per printed memorandum of agreement, dated 4th December, 1878, of course subject to consent of Parliament, which meets early in July. A sum sufficient to meet New Zealand's proportion of subsidy will be placed on estimates. The Hon. the Postmaster-General, Sydney. J. T. Eisher.

No. 5. The Lieutenant-Governor, Sydney, to His Excellency Sir Hercules Eobinson. (Telegram.) Sydney, 9th April, 1879. Hate received cablegram from Secretary of State 7th April. Cable to South Africa urgently needed, can be constructed if Governments consent use duplicate Australian cable of Eastern Extension Company. Company ask eight months for laying Australian cable should count from Ist July instead