F.—B,

3

Sub-enclosure No. 1 to Enclosure in No. 3. The Assistant Secretary to thk Tbeasury to the Under-Secretary of State, Colonial Office. Sir, — Treasury Chambers, London, 22nd September, 1908. I .mi directed by the Lords Commissioners of His Majesty's Treasury to acquaint you, for the information of the Earl of Crewe, that the Pacific Cable Board's account of the expenses of the cable for the year ended 31st March last has now been audited. A copy of the auditor's report is enclosed herewith, from which it will be seen that the deficit on the working of the cable for the year in question amounts to £62,362 10s., and the sums, therefore, recoverable from the colonial Governments are as follows :— £ s. d. Australia (six-eighteenths) .. .. .. .. .. 20,787 10 0 Canada (five-eighteenths) .. .. .. .. .. 17,322 18 4 New Zealand (two-eighteenths) .. .. .. .. 6,929 3 4 £45,039 11 8 I am accordingly to request that you will move the Secretary of State for the Colonies to communicate with the colonial Governments concerned, in order that these amounts may be paid as soon as practicable to the credit of the account of the vote for telegraph subsidies and Pacific cable. A copy of the printed account as presented to. Parliament is enclosed herewith. I have, <fcc, The Under-Secretary of State, Colonial Office, London. W. Blais'. Sub-enclosure No. 2 to Enclosure in No. 3. The Auditor to the Treasury, London, to the Secretary to the Treasury, London. Sir, — Treasury Chambers, London, 27th July, 1908. I have the honour to report that I have audited the accounts of the Pacific Cable Board for the year ended 31st March, 1908, in accordance with the instructions conveyed in their Lordships' minute of the 17th April, 1902, and have found them correct. The annual expenses of the cable, as defined in section 3 (2) of " The Pacific Cable Act, 1901." so far as thev were not met out of the receipts arising in connection with the cable, amounted in the year ended 31st March, 1908, to £62,362 10s., and a sum of £45,039 lis. Bd., representing thirteeneighteenths of the net expenditure, is therefore recoverable from the contributing colonial Governments—viz :— £ s. d. Australia (six-eighteenths) .. .. .. .. .. 20,787 10 0 Canada (five-eighteenths) .. .. .. .. .. 17,322 18 4 New Zealand (two-eighteenths) .. .. .. .. 6,929 3 4 £45,039 11 8 I beg to submit that the accompanying account, which has been duly certified, be presented to Parliament in compliance with section. 7 of " The Pacific Cable Act, 1901." I have &c, G. H. Hunt. The Secretary to the Treasury, London. Auditor. Second Sub-enclosure to Sub-enclosure No. 2 in No. 3. The Chairman, Pacific Cable Board, London, to the Secretary to the Treasury, London. Sir, Queen Anne's Chambers, Tothill Street, Westminster, London, 22nd July, 1908. In transmitting to you the accounts of this Board showing—(i) The sum issued out of the Consolidated Kund, and the expenditure of the Board on Capital Account; (ii) the money borrowed and the securities created; (iii) the aggregate amount of capital expenditure up to the 31st March, 1908 ; (iv) the expenses of the cable in the year ending 31st March, 1908 ; (v) the account of the Provident Fund ; and (vi) the account of the Reserve and General Renewal Fund, I have the honour, on behalf of the Pacific Cable Board, to make the following observations : — 1. During the year under review the Board have had to deplore the loss of their Chairman, Sir Spencer Walpole, K.C.8., who died very suddenly on 7th July, 1907. He was the first occupant of the post, having been nominated to it by " The Pacific Cable Act, 1901 " ; and the ability and zeal with which he discharged his functions were very fully appreciated by his colleagues, and earned for him their high regard. Since the close of the year, the Board have sustained another severe loss in the death of .Mr. C. H. Reynolds, CLE., who, from the commencement of the enterprise, has served them most faithfully and efficiently in the capacity of General Manager. He died on 21st May, 1908, at Lisbon, where, though already suffering severely from the malady which caused his death, he had gone to represent the Board at the International Telegraph Conference.