F.—B

10

with fixtures, furniture, and appliances in accordance with plans and a list to be approved by the engineer, and shall lead the cable and make the necessary connections from the shore ends of the cable into the said cable-houses in an approved and efficient manner, and to the satisfaction of the engineer. Should the position of the said cable-houses, or either of them, be more than 500 yards from high-water mark the contractors shall carry out the further subterranean connections under the direction of the engineer; but they shall be entitled to an extra payment for such extra work, the amount of such extra payment to be fixed by the engineer. 7. The contracting Governments will obtain in due time and grant all Government and other authorities wayleaves and other easements required for landing the cable at Vancouver (Port San Juan) and at Fanning Island respectively, and procure and permit the contractors to enter upon any land required for the purposes of these articles. 8. The contractors shall effect insurances on the cable, until laid, against fire and river and sea risks by a policy or policies in the form usually taken by the contractors, and shall transfer and deliver such policy or policies to the contracting Governments to the full amount of the payments from time to time made to the contractors. 9. The engineer and the contractors shall agree upon the course over which the cable shall be laid, and the positions in which the various types of cable shall be placed, and such agreement shall (unless the engineer consents to any alteration thereof) be adhered to by the contractors as nearly as practicable. 10. During the laying the engineer shall be supplied with any information which is in the possession of the contractors which he may require in connection with the operations as quickly as possible, and shall be consulted as to the retarding-strains to be applied to the cable, and all the incidental questions that may arise during the process of paying out or picking up, should the latter become necessary. The engineer shall also have the right of inspecting the charts, log, and observations taken during the laying of the cable, and also of having communication on the business of laying the cable forwarded from the ship to the shore, and vice versa, through the cable at reasonable times while the same is being laid. 11. The contractors shall provide victualling aud accommodation for the engineer and his staff (not exceeding in the whole five persons) on board the steamship or steamships during the laying of the cable and until the return of the expedition. 12. The contractors shall, if requested, be prepared to take on board the said steamship or steamships, and transport and discharge, free of cost, at Vancouver (Port San Juan) and Fanning Island respectively such materials and.stores as may be required for the building of stations and staff quarters at the respective terminal points of the cable, and also such stores for the provisioning of the staff as may be necessary, but so that the total weight which the contractors may be required to ship, transport, and discharge without extra payment be limited to 300 tons weight. 13. The contracting Governments shall pay in London to the contractors for the works and matters hereby undertaken by the contractors in this part of this schedule the total sum or contract price of £1,067,602. 14. The said contract price shall be paid at the times, by the instalments, and in the manner following, that is to say,— (a.) £186,830 at such time after the date of these articles as may be convenient to the contracting Governments, but not later than the 31st day of March, 1901. (b.) £106,760 on the engineer's certificate of the manufacture in accordance with these articles of 600 nautical miles of cable, (c.) £106,760 on the engineer's certificate of the manufacture in accordance with these articles of 1,200 nautical miles of cable. (d.) £106,760 on the engineer's certificate of the manufacture in accordance with these articles of 1,800 nautical miles of cable, (c.) £106,760 on the engineer's certificate of the manufacture in accordance with these articles of 2,400 nautical miles of cable. (/.) £106,760 on the engineer's certificate of the manufacture in accordance with these articles of 3,000 nautical miles of cable. (g.) £133,450 on the engineer's certificate of the manufacture and shipment of the whole of the Vancouver (Port San Juan) and Fanning Island cable, and that the same is in accordance with these articles. (h.) £133,450 on the engineer's certificate of the successful laying and completion of the Vancouver (Port San Juan) and Fanning Island Cable in accordance with these articles. (i.) £80,072 on the engineer's certificate hereinafter mentioned in clause 16 of this part of this schedule. The engineer shall certify from time to time as to the happening of the event on which the respective instalments of the contract price (other than the moneys payable under head (a) of this clause) are payable. 15. On the completion of the laying of the cable the engineer accompanying the expedition shall examine and test the cable between the respective cable-houses at Vancouver (Port San Juan) and Fanning Island, and as soon as practicable thereafter telegraph to the engineer in England and write to him the results of his examination and testing, and shall forthwith deliver a copy of the telegram and letter to the contractors' engineer in charge (who is hereby appointed agent of the contractors to receive the same); and upon the receipt by the engineer in England of such telegram or letter he shall give his certificate that the section therein referred to has been successfully