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No. 171. The Hon. the Peemiee, Sydney, to the Hon. the Peemiee, Wellington. (Telegram.) Sydney, 26th February, 1900. Have not yet accepted company's offer, but as now altered we can secure cheaper rates without giving company any advantage over Pacific cable. Whatever advantage there is will be with the Pacific cable.

No. 172. The Hon. the Peemiee, Melbourne, to the Hon. the Pbemieb, Wellington. (Telegram.) Melbourne, Ist March, 1900. Pacific cable: Be your cablegram of 25th ultimo, New South Wales and Victorian Governments have practically agreed on basis of arrangements with Eastern Extension Company. Report of Pacific Cable Board just received. Have not had time to consult Mr. Lyne as to its effects on previous arrangements. I propose doing so at once.

No. 173. The Hon. the Postmastee-Genebal, Wellington, to the Hon. the Postmasteb-Geneeal, Brisbane. Sic,— General Post Office, Wellington, Ist March, 1900. I have the honour to acknowledge, with thanks, the receipt of your further circular letter of the 12th ultimo, forwarding copy of a printed report of the views held by the Chamber of Commerce on the question of the proposed Cape cable. I have, &c, W. Geay (for the Postmaster-General). The Hon the Postmaster-General, Brisbane.

No. 174. The Hon. the Pbemieb, Sydney, to the Hon. the Peemieb, Wellington. (Telegram.) Sydney, 2nd March, 1900. Eastern Extension proposals : Seems some misapprehension. We are ready and anxious to carry out our undertaking Pacific cable. Admitted all sides this cannot be completed for three years, probably more. Meantime Eastern Extension offer immediate reduction of rates to four shillings, or about sixteen per cent., and by sliding scale coming three years to two shillings and sixpence as business increases; also, lay cable Cape to Adelaide, and then reduce present excessive Cape rates from seven shillings and threepence to two shillings and sixpence word. No concession asked for or given until Pacific cable completed. They want direct offices so as to compete on equal terms, and in meantime any reduction whatever to remain until Pacific cable laid. Our present agreement terminates thirtieth April, and if no fresh one made company can instead of reducing rates increase them up to eight shillings word.

No. 175. The Hon. the Premier, Wellington, to the Hon. the Premier, Sydney. (Telegram.) Wellington, 3rd March, 1900. Be your telegram of second instant, respecting Eastern Company's proposals and termination of present agreement : There is nothing to fear as to Eastern Company raising rates. To do so will only recoil upon company. The major question is Pacific cable, in which we are all partners, and we should work in harmony, and there should be no departure unless unanimously agreed to, these being the terms upon which partnership entered on. Past experience Eastern Company vividly demonstrates that has not acted upon philanthropic lines, and reductions now shadowed have only one object in view. Again respectfully and strongly urge you to let matters remain in abeyance until Pacific cable committee has reported on effect concessions to Eastern Company would have upon financial prospect of Pacific cable.

No. 176. An Aghbement between the Goveenments op South Australia, Western Austealia, and Tasmania with the Eastern Extension Austkalasia and China Telegraph Company (Limited), as to the Rates for Transmission op Australasian Traffic. An Agreement dated the 14th day of April, 1900, and made between the Government of the Colony of South Australia, by the Honourable John Alexander Cockburn, Knight Commander of the" Most Distinguished Order of Saint Michael and Saint George, for and on behalf of the said Government, of the first part; the Government of the Colony of Western Australia, by the Honourable Edward Home Wittenoom, for and on behalf of the said Government, of the second part; the Government of the Colony of Tasmania, by the Honourable Philip Oakley Fysh, Knight Commander of the said Order, for and on behalf of the said Government, of the third part; and the Eastern Extension Australasia and China Telegraph Company (Limited), (hereinafter called " the Extension Company "), of the fourth part. Whereas the colonies parties hereto of the first three parts are hereinafter referred to as " the contracting colonies" : And whereas the telegraphic traffic between the contracting colonies, New South Wales, Victoria, New Zealand, Queensland, and New Caledonia, on the one side, and Europe, and when transiting Europe all other countries beyond Europe, on the other side, to be transmitted

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