E.—No. 6

10

PAPERS RELATING TO EXTENSION OE TELEGRAPH

The posts to be erected about four (4) chains apart, at points to be indicated by tho District Inspector of Telegraph or his delegate. Not less than a mile of posts to be erected on any one day (Sundays excepted) during the term allowed for completing the contract. The first twenty (20) posts to be erected on or before Monday, the Ist day of May next ensuing, and not less than twenty (20) posts to be erected on each succeeding working day till the tenth of June, 1871, when the contract must be fully completed to the satisfaction of tho District Inspector. A penalty of five pounds (£5) to be paid by the Contractor to Her Majesty the Queen for each and every day that the above-named works remain unfinished after the expiration of the date above named. All penalties due for non-performance of contract shall be deducted from any money or sums of money that was or shall become due to the Contractor under this contract. Progress payments of eighty (80) per cent., and of not less than one hundred pounds sterling (£100) to be made to the Contractor as the works advance. The remaining twenty (20) per cent, will be paid upon completion of the contract. No payments will be made to the Contractor without tho written certificate of the District Inspector, and all works under this contract will have to be performed to his satisfaction. The Contractor shall not let or sub-let any part of his contract, without the consent in writing of the District Inspector; any departure from this clause will render the Contractor liable to a fine of fifty pounds (£5O), to be deducted from the final payment on account of contract. Should the Contractor, by any act of his own or by any act of those in his employ, cause any disagreement- with the Natives either living upon or owning the land over which the line may pass, the works will be immediately stopped and the contract thereby will be rendered of no effect. Hector McKenzie, 4th December, 1871. Alfred Sheath.

No. 33. Mr. Sheath to Mr. C. Lemon. (Telegram.) 22nd April, 1871. The Hon. Mr. McLean requests me to inform you that, after due consideration, the proposed route round the Tauranga Harbour will be adhered to. Mr. Floyd has seen Mr. Heale on the subject. Alfred Sheath.

No. 34. Mr. C. Lemon to Mr. Floyd. (Telegram.) Wellington, 29th April, 1871. The under-mentioned letter is referred to you for report on the last paragraph contained therein, and also my minute on that letter. Reply by wire. C. Lemon, General Manager. " Sir,— New Zealand Telegraph, Auckland, 24th April, 1871. " I have the honor to acknowledge the receipt of your telegram of the 13th instant, from several sources, referring to the Tauranga Kati Kati Line. " Before receiving your telegram, I was not aware that Mr. Blake had made any report on the subject. " The Hon. Mr. McLean made known his intentions and wishes to me, and requested me to inform him how they could best be carried into effect. I did to the best of my ability, and my suggestions have been indorsed both by Messrs. Heale and Clarke. " Since receiving your telegram, I have carefully read over Mr. Blake's report, and consider the suggestions contained therein quite impracticable. " Mr. Floyd saw Mr. Heale on the matter, and he quite supported my views. " I have, Ac, " Alfred Sheath, " District Inspector." " Referred to Mr. Floyd to make full report on this matter by wire. Did Mr. Floyd see Mr. Blake's report ? " C. Lemon, " 29-4-71. ___________________________ " General Manager."

No. 35. Mr. Floyd to Mr. C. Lemon. (Telegram.) 30th April, 1871. The whole question of the route to Kati Kati was closed before I reached Auckland. I had nothing to do with the decision arrived at. I was not consulted in the matter at all, but was told by the Hon. Mr. McLean that he had finally determined on the route round the harbour. I afterwards saw Captain Heale, but not on the subject of choice of route. I considered that settled, and merely went to see map of the country and pick up information. In conversation, Captain Heale informed me that the width of the Kati Kati entrance from the high land to island was three-quarters of a mile ; that the ground on the island was not good for building a high tower on; that it was worse on the Kati Kati end of the island than on the Tauranga end, which Blake had reported to be bad ; that there was some fear the Kati Kati point of the island would be washed away, and that he believed the channel of the entrance was near the island. I said that with a tower 100 feet high on the island I should only