13

F.—2

Enclosure in No. 59. Subsidies contributed to Eastern Extension Company by the Australasian Colonies.

No. 60. Dr. Lemon to the Agent-General, London. Sir, — General Post Office, Wellington, Ist June, 1886. «I have the honour to acknowledge receipt of your letter of the 7th April, informing me of the result of an interview Mr. Pender had with you as to subsidising the Australian cable, and also as to duplication thereof. I have noted the figures of Mr. Pender's table, of which you enclosed a copy. I have, &c, Sir F. D. Bell, K.C.M.G., C. Lemon, Agent-General for New Zealand, London. (For Postmaster-General.)

No. 61. Dr. Lemon to Mr. W. W. Browning, Wakapuaka. (Telegram.) Wellington, sth June, 1886. Please convey the following to Mr. Pender, your chairman : Be Australian New Zealand cable, am directed by the Postmaster-General tell you Government, having considered subject, have resolved not to buy present cable nor to conthrae subsidy. They consider it was intended rates should not be raised when subsidy ended ; and, though they look on want of second cable as a more or less early necessity, they will defer two years buying another cable if ordinary rates are not raised, and Press rates reduced to threepence per word on guarantee by Press of business yielding equal present gross payments, and if present cable is kept in repair. C. Lemon, Mr. Browning, Wakapuaka. Superintendent.

No. 62. The Hon. Sir J. Vogel to the Hon. the Postmaster-General, Sydney. (Telegram.) Wellington, sth June, 1888. The following cablegram has been sent to the Chairman Eastern Extension Company : " Be Aus tralian New Zealand cable, am directed by Postmaster-General tell you Government, having considered subject, have resolved not to buy present cable nor to continue subsidy. They consider it was intended rates should not be raised when subsidy ended; and, though they look on want of second cable as a more or less early necessity, they will defer for two years buying another cable if ordinary rates are not raised, and Press rates reduced to 3d. per word on guarantee by Press of business yielding equal present gross payments, and if present cable is kept in repair.—C. Lemon, Superintendent." Julius Vogel. The Hon. the Postmaster-General, Sydney.

No. 63. The Chairman, Eastern Extension Telegraph Company, London, to the Hon. the PostmasterGeneral, Wellington. (Telegram.) London, 10th June, 1886. Your telegram of sth instant has been submitted to my Board, who much regret learn your Government's decision not to continue subsidy notwithstanding figures show working of cable without subsidy has so far been unremunerative. They also consider your new proposition unreasonable, and cannot entertain it. Company, however, desires an amicable arrangement, and to show willingness meet colonies far as possible, we submit for your consideration favourable proposal—namely,

Colony. Amount of Contribution on 1881 Census in respect of Duplicate Cable. Contribution in respect of Now Zealand and Tasmanian Cables. Contribution if Subsidies spread over all Colonies on 1884 population. Amount if all Colonics contributed in Proportion to their Telegraphic Traffic. Victoria Slew South Wales 3outh Australia Western Australia Sfew Zealand Queensland ... Pasmania ■ £ 14,478 12,617 4,815 498 £ 2,500 £ 13,112 12,564 4,266 449 7,698 4,227 1,780 £ 13,560 14,332 6,835 441 6,063 2,425 441 5,000 4',200 32,400 11,700 44,100 44,100