E.—No. 7

No. 1. Copy of a Letter from Major-General Chute to Governor Sir George Grey, K.C.B. (No. 172-G6.) Head Quarters, Sir,— Auckland, N.Z., 10th May, 186G. I have the honor to acquaint your Excellency that I have received by the last mail from England intimation from the Secretary of State for War, that as the Army Estimates for the financial year of 186G-7 were framed on the understanding that the troops in New Zealand were to be concentrated and largely reduced in numbers, it was not considered necessary to maintain tho Military Electric Telegraph, and accordingly that no provision had been made for it. I was at the same time instructed to communicate with your Excellency, to ascertain whether it was desirable that tho line should be maintained for Colonial purposes ; and if so, to make arrangements for transferring to the Colony such stores, whether fixed or otherwise, as the Colonial Authorities may elect to take. I am also directed to cause all telegraph appointments chargeable to the Imperial Estimates, and expenses which are defrayed from the Commissariat Chest, to terminate as soon as possible. Under these circumstances, I trust your Excellency will inform me with the least possible delay, whether the Colony wish to take over the line of Military Telegraph, which extends over tho Waikato country, and has stations at present at the places specified in the margin. In the event of the line being retained, it will be necessary that immediate steps be taken for its transfer ; and I would submit for your Excellency's concurrence, that some person be appointed, on behalf of the Colonial Government, to meet the Deputy Quartermaster-General, in whose department the line was constructed and worked, and that the gentleman so appointed have power to arrange with tho Deputy Quartermaster-General the amount to be paid for the stores which may be transferred, the sum so agreed on being paid at once into the Commissariat Chest. I am empowered also to state, that in the event of the Colonial Authorities wishing, pending further reference, to retain the services of Corporals Brodie and Butcher, Royal Engineers, their services may be retained if arrangements are made by which their pay will be defrayed from Colonial funds. These non-commissioned officers were sent specially from England for the construction, and have since been most usefully employed in the working, of the line. I have, &c, T. Chute, His Excellency Sir George Grey, K.C.8., &c. Major-General.

Auckland Onchunga, Otahuhu, Papakura, *| licen3 -Koaoubt, \\r a taWata'' Te Eori, Te Awamutu, Cambridge.

No. 2. Copy of a Letter from Mr. Weaver to Mr. Whitaker. Sir, — Public Works Department, Auckland, 25th June, 1866. I have the honor to report that in accordance with your instructions I have inspected the Stores, fixed and reserve, of Electric Telegraph materials, and have also ascertained as far as possible the present state of the line. I find tho latter to be in good working order, and in ordinary repair. There are from thirty to thirty-five miles on which the posts are good. On the remainder of the line they are in various stages of decay, and will all require removal, probably within two or three years —some, in wet places, almost immediately. Taking wear and tear into consideration, I think an allowance of one-third would leave a fair estimate of the present value. I have, &c, Wm. Weaver, His Honor the Superintendent. Enginecr-in-Chief.

No. 3. Copy of a Letter from the Private Secretary to the Assistant Military Secretary. (No. 34.) Private Secretary's Office, Sib,— Wellington, Bth August, 18G6. Kcferring to the letter of the Major-General Commanding, dated the 10th of May last, No. 172-66, I have the honor, by direction of His Excellency the Governor, to acquaint you, for the information of the Major-General, that a valuation has been made of the line and stores of the Military Electric Telegraph, and that, after deducting the cost of labour and one-third of the original value for depreciation, they are estimated to be worth £1,940, which sum the Colonial Government are willing to pay for them. The Government are also ready to retain and pay for the services of Corporals

PAPERS RESPECTING PURCHASE OF ELECTRIC TELEGRAPH FROM IMPERIAL GOVERNMENT.