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No. 149. The Agent-Geneeal to the Hon. the Peime Minister. (Telegram.) London, 3rd March, 1903. At meeting of Board Chairman proposed that difference between terminal and average internal urgent rates should be pooled, being a difference threepence in case of Australian Colonies, nil elsewhere. Australian Colonies' representative strongly objected proposed arrangement. He was agreed as to communicating proposal to Governments concerned. Chairman expressed hope that pending decision New Zealand would not raise terminal. Declined to give him assurance required, although I am of opinion that fair towards Canadian Dominion and United Kingdom had better await reply of Australian States. Should be glad to know what is your opinion proposed arrangement. In practice Australian States profit by Pacific business. Estimate amount £5,400 should, be divided between Governments concerned. New Zealand's share £600. On the other hand, New Zealand would gain estimated amount £2,700 by increase of terminal fivepence.

No. 150. The Agent-Genebal to the Hon. the Peime Ministeb. Westminster Chambers, 13, Victoria Street, London, S.W., Sib,— 6th March, 1903. Eeferring to the cablegrams which have recently passed between us relating to the subject of terminal rates in connection with the Pacific cable, I beg to transmit herewith copy of confidential memorandum [not printed] by the Chairman of the Cable Board, making a proposal with respect to the question which has arisen regarding the excess terminal rate. When this proposal came before the Board the Australian representative, Mr. Copeland, read a memorandum opposing it As, however, the Board was prepared to refer the matter to the Governments concerned for their consideration, any discussion was postponed. I am, however, inclined to think, judging from the tone of Mr. Copeland's remarks, that we may anticipate a decided refusal from the Australian States as regards adopting the Chairman's proposal. If that proves to be the case, it will then be for the Government to decide whether New Zealand should not increase her terminal rate. As indicated in my cablegram of the 3rd instant, the consequent pecuniary gain to New Zealand would be greater than if you adopted the pooling arrangement proposed by the Chairman ; on the other hand, such an arrangement would be fairer and more friendly to this country and Canada. As, however, your grasp of details connected with this matter is complete, I need scarcely add more to what I have said on the subject in this and previous communications. I have, &c, The Hon. the Premier, Wellington. W. P. Beeves.

No. 151. The Vice-Pbesident and Geneeal Manages, Postal Telegraph Cable Company, New York, to the Secbetabt, General Post Office, Wellington. Postal Telegraph Cable Company, Office of the Vice-President and General Manager Sik,— New York, 10th March, 1903. In response to your request of the 30th January [not printed], we take pleasure in sending you, under separate cover, maps showing the routes of this company's lines and connections in the United States and British North America. Yours, &c, The Secretary, General Post Office, Wellington. W. H. Bakee, Vice-President and General Manager.

No. 152. The Hon. the Peime Ministeb to the Agent-Geneeal. (Telegram.) Wellington, 11th March, 1903. Be Pacific cable terminal rates : New Zealand does not at present give way. Consider action to be governed by replies from Commonwealth and letter received by last mail from yourself. Would ask that our terminal rates should be raised to £2,000 per annum—that is, assuming the Commonwealth rates remain at fivepence.

~: :-.■■■■ :..;. No. 153. The Agent-Genebal to the Hon. the Peime Ministee. Westminster Chambers, 13, Victoria Street, London, S.W., Sib,— 17th March, 1903. Eeferring to my letter of the 6th instant, and to your cablegram of the 11th instant, I beg to transmit herewith copy of letter which was addressed to the Pacific Cable Board, and copy of the Board's reply thereto. I have, &c, The Hon. the Premier, Wellington. W. P. Beeves.

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