11

F.—s

on this class of traffic of nearly £1,500 : altogether, they have received from the transit-rate since 1876 the enormous sum of £558,000. It should also be borne in mind that when this reduction was negotiated with the Indian delegate (Colonel Mallock) the tariff proposed for Australia was 55., the 4s. rate having been reluctantly accepted by the company at a later stage of the Paris Conference proceedings. Consequently, the variation of the experimental tariff now proposed by the colonies would still leave it below the 55., and would not justify the Indian Government in departing from the arrangements agreed to in Paris. Moreover, we understand that India's intention is to retain the rate of 35 centimes for traffic exchanged with Java, China, Japan, Manila, &c, where the tariffs are proportionately much higher than to Australia, and to apply the proposed 50-centimes rate to Australasia only, thus penalising the colonies and placing them in a much worse position than that occupied by foreign countries. If the increased transit-rate were insisted upon it would involve the colonies in very serious loss, and might lead to a return to the former high tariffs, which would unquestionably reduce the traffic, and, consequently, diminish India's revenue from the telegraph service, besides injuring the Mother-country, whose commerce is largely benefited by the present low tariff, although she contributes nothing whatever to the cable subsidy or guarantee. We therefore venture to hope that your Lordship will be able to induce the Secretary of State for India to meet the views of the colonies without further delay, as they consider it to be most important that the changes of tariff should be brought into operation, not later than the Ist December proximo, and, to do this, India's consent is alone wanting. We should be glad to wait upon your Lordship, accompanied by Sir John Pender; and, if necessary, to have an interview with Lord Kimberley on the subject. We have, &c. Saul Samuel, Agent-General for New South Wales. E. Braddon, Agent-General for Tasmania. W. B. Bercevae, Agent-General for New Zealand. J. C. Bray, Agent-General for South Australia. And. Clarke, Acting Agent-General for Victoria. Malcolm Fraser, Agent-General for Western Australia. The Most Hon. the Marquis of Bipon, KG., &c, Secretary of State for the Colonies.

Enclosure 2 in No. 34. The Agent-General for New South Wales to the Hon. the Premier, Sydney. (Joint telegram.) London, 15th November, 1892. Agents-General waited upon Lords Bipon and Kimberley to-day. Kimberley admitted force of arguments and promised to represent matter for consideration of Indian Government with a view to obtaining reply in time for new rate to come into operation by first January. Inform other Governments.

No. 35. The Agent-General to the Hon. the Premier. Westminster Chambers, 13, Victoria Street, London, S.W., 20th December, 1892. Sir, — Cable Rates. Eeferring to my letter of the 15th November last, I beg to acknowledge receipt of your cablegram (copy herewith) agreeing to Sir John Bender's proposal to share the extra rate in case the Indian Government persisted in their demand for a share in the extra amount which the Australian Colonies propose to charge for cablegrams. In accordance therewith, and with your previous instructions, I have joined in signing the two agreements entered into between the Governments of Australia (Queensland excepted) and New Zealand and the Eastern Extension Ausiralasia and China Telegraph Company, and herewith I transmit printed copies of the same. I also attach copies of letters addressed to the Colonial Office and to the Eastern Extension Telegraph Company, by which you will see that the new tariffs will be brought into operation not later than the Ist January next. I also enclose copy of letter which the Eastern Extension Company addressed to me, undertaking that the agreements laid before me for signature were in the form agreed upon by the New Zealand Government. I requested the company to furnish me with this letter, as final particulars of the agreements had reached me by cablegrams only, and were, therefore, necessarily curtailed. I have, &c., The Hon. the Premier, Wellington, W. B. Perceval.