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APPENDIX E. FUETHER COIAEESPONDEXCE RE PACIFIC CABLE VIA NEW CALEDONIA, &c. The Under Secretary and Superintendent op Telegraphs, Brisbane, to The Hon. Audley Coote. Post and Telegraph Department, Brisbane, 28th February, 1893. Sir, —I. have the honour to bring under your notice, as Agent and Eepresentative of the Societe Franfaise dcs Telegraphs Sous Marins, the accompanying copy of a cablegram recently appearing in the public Press of this Colony, and referring to the action of the French Government with regard to the submarine cable between Queensland and New Caledonia, and would also invite attention to Clauses 2 and 7—copies herewith—of the agreement entered into by the Societe dcs Telegraphs Sous Marins and the Government of Queensland. In these circumstances, I am directed by the Hon. the Postmaster-General to inquire whether the conditions set forth in the cablegram alluded to —and which are not embodied in the above-mentioned contract—are correct, and to state further that should such be the ease the Queensland Government cannot subscribe to the conditions, and must look upon them as foreigu to tho agreement with your Company. I have, &c, john McDonnell.

[Enclosure No. 1 of above letter.'] Copy of Extract from The Brisbane Courier of 21st February, 1893. CABLE MESSAGES. (From our London correspondent.) Cable between Queensland and New Caledonia. London, February 15. The French Government has submitted to the Chamber of Deputies a Bill to subsidise the laying of a cable before the 22nd of September next between Queensland and New Caledonia, on the ground that inconvenience and delay arise from the want of telegraphic communication between Australia, the present telegraph terminus, and New Caledonia. It is proposed to grant £8,000 yearly for thirty years, on condition that the cable and all its belongings shall be entirely French. It must be laid by a French staff, on a French ship, and controlled by a French directorate in Paris, which control is not to be parted with unless by the special consent of the French Government. Queensland's promise to give this foreign venture exclusive landing rights for thirty years forms part of the scheme, but there is no reference to, or provision for, or promise of assistance towards, any extension of the cable across the Pacific, which, according to the Postal report of the Queensland Government for 1891, was to form a principal feature of the project. This scheme is adversely criticised in London, as being likely to prevent the future construction of a British cable to Queensland, and as encouraging foreign enterprise. Mr. Sandford Fleming and other Canadians, as well as several Australian statesmen, have in the past objected to any Pacific cable not entirely under British control.

[Enclosure No. 2 of above letter.'] 2. The said cable shall form part of the Main Pacific Cable connecting Queensland with Vancouver, San Francisco, or such other place in North America as may hereafter be determined. 7. As soon as the Main Pacific Cable connecting Queensland with North America as aforesaid shall be completed, the guarantee hereinbefore mentioned shall be re-arranged, and shall form part of any joint guarantee which may be given by any other Countries or Colonies in consideration of the laying of the Main Pacific Cable. Copy op Telegram from Audley Coote, Hobart, Tasmania, to Hon. T. Hnmack, PostmasterGeneral, Brisbane, 6th March, 1893. "jPress telegrams purposely misleading Agreements strictly adhered to Cable ship leaves June Shall arrive Brisbane fourteenth arrange further extension."

The Hon. Audley Coote, Hobart, to The Honourable the Postmaster-General, Brisbane, Queensland. Hobart, 4th March, 1893. "NEW CALEDONIA AND PACIFIC CABLE." Sir, —Will you please let me refer to the cable messages and paragraphs that have appeared in the Southern Press, which have been made to say the Company that I represent do not intend to go beyond New Caledonia with the cables. I have again the pleasure to inform you that it is the intention —as it always has been —of the Company to go on with the laying of the cables from New Caledonia to Fiji, Samoa, and beyond, so soon as