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No. 3.—Western Australian Government having informed us they agree to company's latest proposal, hope soon learn that your Government also concur. No. 4.—Eeferring last portion our offer to reduce tariff below 4s. on sliding scale, following are details proposition based on arrangement to be applied to South African traffic. Present Australasian guarantee figure is £227,000, to which would have to be added £123,000 to cover estimated yearly expenses in connection with new line between Africa and Australia, making total £350,000, or £15,000 less than average of last three years' Australasian revenue. When for three consecutive years total value of traffic to associated companies has averaged above amount tariff would be reduced to 3s. 6d. per word. If average value any three consecutive years exceeds £350,000, tariff reduced to 35., and if average any other consecutive three years exceeds that sum, tariff reduced to 2s. 6d. Consequently, if tariff continues to average £350,000 after reductions, tariff for— s. d. First three years would be ... . ... ... ... ... 4 0 Fourth year ... ... ... ... ... ... ... 3 6 Fifth year ... ... ... ... ... ... ... 3 0 Sixth year ... ... ... ... ... ... ... 2 6 No. 5. —Since giving you details of sliding scale, following basis, more beneficial to Government, has been arranged for South Africa, and we are prepared extend same basis to Australia. If associated companies' receipts from Australasian traffic at 4s. tariff in 1898, 1899, and 1900 average £350,000, rate would be reduced to 3s. 6d. in 1901. If average receipts maintained at £350,000 for 1899, 1900, and 1901, tariff would then be reduced in 1902 to 3s. If average receipts maintained at £350,000 in 1900, 1901, and 1902, tariff would be reduced in 1903 to 2s. 6d. Should average receipts not keep up to £350,000, any one of above reductions would be postponed until receipts averaged standard figure of £350,000 for three consecutive years.

No. 140. The Hon. the Pbemieb, Melbourne, to the Hon. the Peemiee, Wellington. (Telegram.) Melbourne, 31st August, 1899. Have you any objection, as our partner in Pacific Ocean telegraph-cable scheme, to Victoria granting concessions asked for by Telegraph Company ; which are fully known to you ? Has similar proposition been submitted to you ; if so, what action has been taken with regard to it ?

No. 141. The Hon. the Peemieb, Wellington, to the Hon. the Peemiee, Melbourne. (Telegram.) Wellington, 11th September, 1899. Inadvisable, I think, allow Eastern Company establish office for delivering and collecting their international telegrams. The concession, it appears to me, would place company in exceptionally strong and independent position as competitor, and prevent Governments determining what traffic should be sent over Pacific cable. Proposals not made this colony, but I received from company copy of letter forwarded your Postmaster-General on 24th July. I replied that, as New Zealand was committed to Pacific-cable scheme, we could not support Cape-Australia cable.

[Read here Enclosure 3 in No. 118, and Enclosures 5 and 6 in No. 119.] No. 142. The Secbetaey, General Post Office, Wellington, to the Acting-Managee in Austealasia, Eastern Extension Company, Melbourne. Sic, — General Post Office, Wellington, 29th December, 1899. I have been directed to acknowledge the receipt of your letter of the Bth August last, forwarding information regarding the sliding-scale proposed by your company in connection with the Cape cable. I have, &c, W. Geay, Secretary. The Acting Manager in Australasia, Eastern Extension Australasia and China Telegraph Company (Limited), Melbourne.

No. 143. The Agent-Geneeal to the Hon. the Peemiee. Westminster Chambers, 13, Victoria Street, London, S.W., Sic,— 13th January, 1900. In the last week of December I received from the Agent-General for Victoria copies of correspondence which had passed between the Premiers of New South Wales, Victoria, New Zealand, and Queensland relative to certain proposals of the Eastern Extension Company as to laying the cable between Australia and South Africa, and the terms upon which they were prepared to lay it. The covering letter of the Premier of Victoria stated that the Governments of the four colonies had decided to refer the matter to the Australasian delegates on the Pacific Cable