F.—B,

18

2. Telegrams, however, originating in or destined for countries situated outside of Europe are only retransmitted by a more costly route if they are presented at the office which has to retransmit them within a maximum period of twenty-four hours following notification of the interruption. The presentation of the first telegram bearing the indication " diverted " (Reg. LXXVI., paragraph 5) will be considered as taking the place of the official notification of the interruption. LXXVI. 5. In traffic under the European regime, when a telegram in course of transmission quits the route by which its charge was calculated, the amount collected for its transit is divided, from the point where the normal route was left, among the Administrations employed in its transmission, including the Administration which occasioned the diversion, and any submarine cables concerned. This diversion is effected pro rata to the normal transit rates. The above stipulations apply equally to telegrams transmitted by a more expensive route, under the conditions stated in Article XLII. (2). Telegrams forwarded under the conditions stated in the two preceding paragraphs bear the indication " diverted," which is transmitted at the end of the preamble, after the route indication, if there is one. 6. In the case of telegrams between limitrophic countries which are transmitted by a circuitous route, the Administration of origin credits the normal transit rates, in the absence of special arrangements. On the other hand, the terminal rates for such telegrams are settled between the Administrations of the two limitrophic countries, unless they are to be retained by the Administration of origin by virtue of special arrangement. 7. Under the extra-European regime, except in the case provided for in paragraph 5, section 2, when a telegram of whatever kind has been transmitted by a different route from that by which the charge was calculated, the difference of charge is borne by the Administration which diverted the telegram, subject to recovery from the Administration which may have caused the diversion.

No. 36. The Secretary, General Post Office, Wellington, to the Superintendent, Pacific Cable Station, Doubtless Bay. (Memorandum.) General Post Office, Wellington, 23rd November, 1904. Referring to your letter-'of the 20th September last [not printed], on the subject of diverted traffic, I beg to forward herewith copy of my letter to the Secretary, Postmaster-General's Department, Melbourne [No. 50, F.-Ba, 1904], on the matter, and his reply thereto [No. 35]. I would suggest that the General Manager of your Board should ommunicate with the Federal Post Office in the hope that some reasonable basis may be found for an agreement respecting traffic diverted from the Pacific route in the case of interruptions. This Department has already agreed to come into line. I am of opinion that the Commonwealth should reduce its transit rate on diverted traffic. W. Gray, Secretary. The Superintendent, Pacific Cable Station, Doubtless Bay.

No. 37. The General Manager, Pacific Cable Board, London, to the Secretary, General Post Office, Wellington. The Pacific Cable Board, Queen Anne's Chambers, Sir,-- Tothill Street, Westminster, London, S.W., 20th January, 1905. Mr. Hertslet has forwarded me a copy of your memorandum dated the 23rd November; and I now send for your information a copy of my letter dated the 20th January, addressed to the Secretary, Postmaster-General's Department, Melbourne, dealing in considerable detail with the question of the treatment of diverted traffic in case of interruptions south of Norfolk Island, either on the cables or the connecting land-lines in Australia and New Zealand. The settlement of the case was deferred by the Postmaster-General of Australia to the Pacific Cable Conference, when I hope it will be satisfactorily settled. I have, &c, C. H. Reynolds, General Manager. The Secretary, General Post Office, Wellington.

Enclosure in No. 37. The General Manager, Pacific Cable Board, London, to the Secretary, Postmaster-General's Department, Melbourne. The Pacific Cable Board, Queen Anne's Chambers, Sir,— Tothill Street, Westminster, London, S.W., 20th January, 1905. The Secretary of the New Zealand Post Office has forwarded me a copy of your letter, dated the 7th November, 1904, on the subject of the transit rate in Australia between La Perouse and Southport on diverted traffic during interruption on the New Zealand land-lines to Doubtless Bay or the cable between Doubtless Bay and Norfolk Island.