F.—B.

No. 55. The Hon. the Postmaster-General, Wellington, to the Secretary, Pacific Cable Board, London. General Post Office, Wellington, sth September, 1902. Sir, — Pacific Gable Station, Doubtless Bay. I have the honour to acknowledge the receipt of your letter of the Bth July last, advising that Mr. Eeynolds had informed your Board that the revised proposal provisionally agreed to at the interview between us was that the New Zealand Government should bear the cost of the landline and pay the Board for operating it, and that the Board should bear the cost of the buildings. There would seem to be some misunderstanding on the part of Mr. Eeynolds, as the question of your Board sharing the cost of the land-line has never been raised. The terms of the memorandum from Mr. R. E. Peake, on the Ist July, 1901, were not lost sight of; but the variation of the provision as to the New Zealand Government paying rent on half the capital cost, should the Board bear the total cost of the land and buildings, was agreed to by Mr. Eeynolds, subject to confirmation, on its being decided that the Board should work both the cable and the land-lines, and the New Zealand Post and Telegraph Department pay over a sum equivalent to the salaries of the telegraphists required to operate the land-line circuits, the Board becoming responsible for the whole cost of the buildings and for fitting up the station. I have, &c, J. G. Ward, Postmaster-General. The Secretary, Pacific Cable Board, 24, Queen Anne's Gate, London, S.W.

No. 56. The Hon. the Acting-Premier to the Agent-General. Premier's Office, Wellington, sth September, 1902. Sir, — Pacific Gable Station, Doubtless Bay. I have the honour to inform you that a letter addressed to the Postmaster-General has been received from the Secretary of the Pacific Cable Board with reference to a statement, as follows, in a letter from Mr. Eeynolds to the Board : "In the original agreement the New Zealand Government was to bear half the cost of the land-line and buildings. The revised proposal is that they should bear the cost of the land-line and pay us for operating it, and that we should bear the cost of the buildings." For your information, I beg to forward herewith copy of the reply to the Secretary of the Board. I have, &c, J. G. Ward, Acting-Premier. The Hon. W. P. Eeeves, Agent-General for New Zealand, London.

No. 57. The Secretary, General Post Office, Wellington, to the Under-Secretary, Public Works Department, Wellington. (Memorandum.) General Post Office, Wellington, 15th September, 1902. I have to inform you that the Secretary of the Pacific Cable Board advises that the Board approves and sanctions the expenditure of £200 increase in the original estimate for buildings at Doubtless Bay Cable-station, and of £200 additional to the £600 authorised for water-supply, for which expenditure Mr. Eeynolds has already given his provisional authority. W. Gray, Secretary. The Under-Secretary, Public Works Department, Wellington.

No. 58. The Superintendent, Pacific Cable Station, Doubtless Bay, to the Secretary, General Post Office, Wellington. (Telegram.) Doubtless Bay, 17th September, 1902. Following from Milward, Chief Electrician : " 'Colonia' started laying. I think the whole line will be finished by end October, and probably open for traffic before middle November if staffing arrangements completed."

No. 59. The Secretary, General Post Office, Wellington, to the Superintendent, Pacific Cable Station, Doubtless Bay. (Telegram.) Wellington, 4th October, 1902. When do you expect Southport to be working direct with Sydney ?

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