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No. 40. The Hon. the Colonial Secretaet, Sydney, to the Hon. the Colonial Secretary, Wellington. (Telegram.) Sydney, 9th February, 1886. Have received the following message from our Agent-General: " Eastern Extension Company formally undertakes to announce immediately reduction of one and fourpence per word from Ist July unconditionally. Offering also further similar reductions provided subsidy proposals be agreed to. Proportionate reductions Government and Press. Prospects Press reduction to tw ro and eightpence, provided the contributing colonies consent that non-contributing colonies shall share in the benefit." John Eobertson, The Hon. the Colonial Secretary, Wellington. Colonial Secretary.

No. 41. The Agent-General, Loudon, to the Hon. the Colonial Treasurer, Waiwera. (Telegram.) London, 10th February, 1886. Cable price Telegraph Maintenance and Construction Company, one hundred thousand, eighty thousand, three thousand five hundred. F. D. Bell. The Hon. the Colonial Treasurer, Waiwera.

No. 42. The Hon. the Postmaster-General, Sydney, to the Hon. Sir J. Vogel, Auckland. (Telegram.) Sydney, 18th February, 1886. Following message has been received from Agent-General: Eastern Company now see their way to make promised reduction of Press rates to two shillings and eightpence on early date, probably about April, provided contributing colonies to Darwin Cable agreed that benefit shall be extended to non-contributing colonies. Company willing to reduce rate to eight shillings per word. Government, in proportion of contributing colonies, will extend subsidy for six and a quarter years. Company will also agree to New Zealand Government terms for renewing New Zealand cable subsidy ; Murray Smith and Todd wiring their Governments company have now conceded all that you require as regards New Zealand cable. We hope your Government will see its way to join us in Port Darwin subsidy, in order that the reduced rates over both Port Darwin and New Zealand cables can be brought into operation without further delay. Daniel O'Connor, The Hon. Sir J. Vogel, iVuckland. Postmaster-General.

No. 43. The Hon. Sir J. Vogel to the Hon. the Postmaster-General, Sydney. (Telegram.) Waiwera, 20th February, 1886. Your telegram received. I will submit to Cabinet as soon as possible. Meanwhile, I may say it is uncertain if our Government will now renew subsidy. I find the cable must have paid splendidly. For the use of the cable from New Zealand to Sydney the company have averaged, for the whole term, eight thousand six hundred pounds a year. Assuming equal amount other way, the average is seventeen thousand two hundred pounds, and, with the subsidy, twenty-four thousand six hundred pounds. The line, too, is improving, as this year the receipts New Zealand to Australia were over ten thousand; and with the same the other way, and subsidy, the receipts cannot be much less than thirty thousand pounds. When you consider the value of the cable this is enormous. The AgentGeneral cables that Preece has revised the specification, and that the cost will be one hundred and seventy thousand. By Queensland a much cheaper, shorter, and shallower route can be had. The three colonies might join in procuring a cable. As regards through cable, before entertaining new proposals, recommend you ascertain cost two through lines: one, Queensland-England; the other, Perth by Ceylon, Mauritius, Natal, Cape, and England. The colonies jointly constructing these could afford to charge three shillings a word, and less for Press. Please send copy to the Premier, Queensland. Julius Vogel. The Hon. the Postmaster-General, Sydney.

No. 44. The Hon. Sir J. Vogel to the Hon. the Postmaster-General, Sydney. (Telegram.) Wellington, 18th March, 1886. _ Please say, did you send copy of telegram 20th February to Queensland ? Also, are you inclined to join in laying new cable between Australia and New Zealand ? The Hon. the Postmaster-General, Sydney. Julius Vogel. 2— F. 2,