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(Draft.) Proposed Letter to the Eastern Extension, Australasia, and China Telegraph Company (Limited). In order to settle the difficulty which has arisen in regard to the reduction of the present cable rates, we desire to assure you that on the completion of the Pacific cable nothing will be done by our respective Governments or any of our officers which will unfairly take away from the company business which otherwise would be transacted through it, and that where cablegrams are handed to any officer without being marked for either line the officer will ask the sender which line he desires to use, and have the cablegram so marked. We do not in any way desire to have any competition with the company which is not legitimate, so long as the company acts in a similar way, and maintains without exception its published tariff of rates. We are prepared, also, to advise those who are associated with us in the Pacific-cable scheme to ask the Committee in London to negotiate with the company for a joint promise, as suggested by the Committee, and any understanding arrived at will be favourably considered by our Governments. We trust that the company will be satisfied with this proposal, and thus put an end to the difficulties which have arisen, and prevent any further unpleasantness.

No. 57. The Hon. the Premier, Melbourne, to the Hon. the Premier, Wellington. (Telegram.) Melbourne, Bth February, 1901. Sir George Turner did keep a copy of draft letter to Eastern Extension Company, therefore unnecessary trouble you for copy. He was in doubt as to what became of copy which he handed to you. Sir George Turner yesterday sent copy to Premier of Queensland with request to be informed of views of that Government with regard thereto.

No. 58. The Hon. the Premier to the Agent-General. (Telegram.) Wellington, Bth February, 1901. Please inform Canada at once that New Zealand is in harmony with Victoria and Queensland, and has no intention of agreeing to concessions asked by Eastern Extension, and will be no party, unless with consent of partners, to alter conditions or knowingly Jo anything prejudicial to Pacific scheme.

No. 59. The Hon. the Premier, Wellington, to the Hon. the Premier, Brisbane. (Telegram.) Wellington, Bth February, 1901. .Pacific cable: New Zealand has no intention of making any concessions to Eastern Extension. Our Agent-General requested inform Canada.

No. 60. The Agent-General to the Hon. the Premier. Westminster Chambers, 13, Victoria Street, London, S.W., Sir,— 15th February, 1901. In continuation of my letter of 30th ultimo, I beg to enclose herewith copy of a letter which I addressed to the High Commissioner for Canada upon receipt of your cablegram of Bth instant, relating to the Eastern Telegraph Company's agreement with New South Wales, together with a copy of the High Commissioner's reply. I have, &c, The Hon. the Premier, Wellington. W. P. Reeves.

Enclosure 1 in No. 60. The Agent-General to the High Commissioner for Canada. Dear. Lord Strathcona, — 13, Victoria Street, S.W., Bth February, 1901. Referring to your letter of the 26th ultimo, and in confirmation of the assurance which I have already given to you that my Government would co-operate with Canada in disapproving the step taken by the New South Wales Government, I beg to quote for your information a copy of a cablegram which I have this day received from my Government. [See No. 58.] I am, &c, Lord Strathcona and Mount Royal. W. P. Reeves.

Enclosure 2 in No. 60. The High Commissioner for Canada to the Agent-General. Dear Mr. Reeves, — 17, Victoria Street, S.W., 11th February, 1901. I am in receipt of your letter of the Bth instant, and am greatly obliged to vou for acquainting me with the text of the cablegram received by you from your Government, iii which they state their attitude in regard to the concession asked for by the Eastern Extension Telegraph Company.

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