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to enable a company to connect England telegraphically with Australia through Canada and the Pacific Ocean, have the honour to state :— We have considered the whole question, and are of opinion that a substantial company can be formed to establish an efficient telegraph connection on the route proposed for a total annual subsidy of £100,000 for twenty-five years. The subsidy may be apportioned as follows, i.e. : — 1. Great Britain, on behalf of the United Kingdom, India, and the Crown Colonies ... ... ... ... £50,000 2. Canada ... ... ... ... ... 10,000 3. Queensland ... ... ... ... ... 10,000 4. New South Wales... .. ... ... ... 10,000 5. Victoria ... ... ... ... ... 10,000 6. New Zealand, Tasmania, and Western Australia ... ... 10,000 £100,000 Or should the Imperial Government, by an arrangement with the Colonial Governments, itself guarantee the whole amount, the total subsidy may be considerably reduced, as the Imperial guarantee would enable the company to find capital at a lower rate of interest. With such guarantee a total subsidy of £90,000 for twenty-five years would suffice, and thus reduce the annual contributions. The subsidy mentioned is calculated to pay interest on borrowed capital and provide a sinking fund for its repayment in twenty-five years. As the company would transmit all the messages of the various contributing Governments free, and the rates chargeable to the public for "through" messages would not be more than onehalf the present regular tariff charges, Great Britain and the colonies would save a much greater sum than the amount of subsidies above proposed. If the several Governments agree to pay over to the company a percentage of the gross savings which could thus be effected by each country, the company could still further reduce the charges to the public. We have, &c, Donald A. Smith, Randolph C. Want, Andbew Robeetson, The Hon. Sir Charles Tupper, G.C.M.G., C.8., Matthew Geay, High Commissioner for Canada, London. Sandfobd Fleming.

Enclosure 2. Sir Charles Tuppeb to the Agent-General for New Zealand. Sic,— 9, Victoria Chambers, S.W., 31st July, 1886. With reference to my letter of the 28th instant on the subject of the proposed telegraphic communication between Canada and Aiistralasia, I think I had better give you some particulars respecting the status of the gentlemen who prepared the letter addressed to me on the 19th July containing a proposal for submission to the Imperial and Colonial Governments. They are as follows : Sir Donald A. Smith, K.C.M.G., Director of the Canadian Pacific Eailway Company, and Hudson's Bay Company ; Mr. Randolph C. Want, Solicitor in London for the New South Wales Government; Mr. Andrew Robertson, Chairman of the Board of Harbour Commissioners, Montreal; Mr. Matthew Gray, Manager of the India Rubber Gutta Percha and Telegraph Works Company ; Mr. Sandford Fleming, C.M.G., C.E., Director of the Canadian Pacific Railway Company and late Engineer of the Intercolonial Railway and Canadian Pacific Railway. I beg to inform you also that copies of the memorandum have been sent' to the Secretary of State for the Colonies for the consideration of Her Majesty's Government, the Government of India and the Crown Colonies. Copies have also been forwarded to the Canadian Government. This is in addition to the copies which have been sent to each of our colleagues to be brought under the notice of their respective Governments. It is right I should add that the proposal is brought forward, not as a definite scheme, but as a draft for discussion, and I venture to hope that when the replies are received from the various Governments, it may be possible to so consolidate the suggestions that have been made as to secure the hearty co-operation of the various colonies concerned and of the Mother-country and India. I have, &c, Charles Tuppee. P.S.—I also enclose you a copy of this week's Canadian Gazette, containing, on page 387, an account of an interview which a representative of that journal has had with Mr. Sandford Fleming on the subject of the proposed cable.

Messrs. Rowan and Coote to the Hon. the Postmastee-Genebal. Sic,— 29, Queen Street, Melbourne, 20th December, 1886. Proposed Pacific Cable. —Eeverting to previous correspondence on the same subject, we have now the honour to forward for your consideration a further memorandum on the matter. We beg at the same time to repeat our assurance that the scheme is being vigorously proceeded with, and we regret that unavoidable delays have prevented our friends in London from placing us in a position just yet to lay the formal proposals before you. These delays, we are informed, were