11

F.—3

We may, perhaps, in conclusion, be permitted to say a word as to the risk of the cable becoming useless and valueless. The methods of cable manufacture have so greatly improved in the last few years that such risk may almost be left out of consideration. We would not go so far as to say that a break-down of the cable would be impossible, but with care in drawing up the specification, and with strict and competent supervision, the risk is reduced to a minimum. Take, for instance, the existing cable to New Zealand from New South Wales, and it must be remembered that cable manufacturing has made great strides since that one was made. As to special dangers to be apprehended from the nature of the bottom, from the depth of the sea, from coral or from the teredo, those surveys already made tend to show a very even floor to the ocean on the line proposed. If a cable be really well made at first it is safer in deep than in shallow water, while the brass sheathing now applied to protect marine cables is a complete safeguard against injuries from the teredo or from coral. It will be thus seen that any objection to subsidizing the Pacific cable, on the score of risks of the nature indicated, may fairly be set aside as being extremely remote and infinitesimal.

No. 3. Mr. Jones to the Hon. the Pbemieb, "Wellington. Pacific Telegraph Company, Limited, 34, Clements Lane, Lombard Street, Sib,— London, E.C., Bth December, 1886. I am instructed to notify to you that a company under the above title was registered in London on the 23rd November, 1886, and that its first meeting was held yesterday. The capital of the company is two millions sterling. It has been formed for the purpose of establishing an entirely new line of telegraphic communication between England and Australasia, a line under exclusively British control. Favourable terms having been secured by the company for the transmission of their messages between England and Vancouver Island, all that will remain to complete the chain of communication will be the laying ol a submarine cable from the latter point to New Zealand and Australia, touching at. Hawaii and Fiji. The soundings already taken by the United States surveying ship "Tuscarora " along the projected line afford the certainty that the Pacific Ocean bed will be found extremely favourable for laying the proposed cable. The following advantages are confidently claimed for this scheme: — (1.) That from an Imperial and strategic point of view it is impossible to over-estimate its importance ; it will, in fact, supply the one essential link which is now wanting to complete the chain of Imperial security. It will place our Pacific fleet in direct relations with the Home Government on the one hand and with Australasia on the other, while affording, in case of war, the only trustworthy communication between England, Australasia, India, and the East. The land lines used by the company, being exclusively on British territory, will be completely protected in time of war, and following as they do a main line of railway will be at all times under constant supervision, and not liable to interruption. (2.) The continent of America will be placed for the first time in direct electric communication with Australasia and the Islands of the Pacific, and a great development of the Pacific trade must follow as a natural consequence. (3.) The company will be enabled to reduce materially the existing tariffs between England and Australasia. The signatories to the articles of association, whose names I annex, are gentlemen of influence in England, or occupying prominent positions in the Dominion of Canada, and Australasia; and representing, as they do, the varied interests of our Home and colonial possessions, they accurately reflect the amount of support which the company may expect to receive from their respective Governments. It is the desire of this company to enter into negotiations with the Government which you represent, and with the other Governments interested, with the view of obtaining from them assistance in carrying out this important Imperial project, and I shall hope to learn from } rou that your Government will look with favour on the scheme, and will afford it their countenance and support. I have, &c, Owen Jones, Secretary (pro tern) Pacific Telegraph Company, Limited.

Enclosure. List of Signatoeies to the Articles of Association of the Pacific Telegraph Company, Limited. The Earl of Milltown, Representative Peer of Ireland, in the Parliament of Great Britain. Sir Donald A. Smith, Director, Hudson's Bay Company, Montreal. Sir James P. Corry, Bart., M.P., Member for Armagh, in the Parliament of Great Britain. Sir Daniel Cooper, Bart., London. The Viscount Folkestone, M.P., Member for Middlesex, in the Parliament of Great Britain, Comptroller of H.M.s household. Hugh G. Eeid, Esq., J.P., Warley Hall, near Birmingham. Sir Alfred Blade, Bart., Receiver-General of H.M.s Inland Revenue. Sandford Fleming, Esq., C.M.G., Director, Canada Pacific Railway and Hudson's Bay Company, Ottawa. J. Henniker Heaton, Esq., M.P., Member of Parliament of Great Britain for Canterbury.