F.—s.

Enclosure 2 in No. 35. Agreement as to Bates between New Zealand and New South Wales. An Agreement, made this thirteenth day of December, 1892, between Her Most Gracious Majesty the Queen of the one part, and the Eastern Extension Australasia and China Telegraph Company, Limited (hereinafter called the " the Extension Company ") of the other part. Whereas these presents are entered into on behalf of Her Majesty, by the authority of the Government of New Zealand : And whereas the telegraph cables connecting New Zealand with New South Wales are owned by the Extension Company : And whereas upon the average of the last three years the existing total yearly receipts of the Extension Company in respect of all messages, whether intercolonial or international, passing over the said cables have, for the purposes of this agreement, been agreed between the parties at the sum of £26,258 (say, twenty-six thousand two hundred and fifty-eight pounds): And whereas it has been proposed that the rates heretofore charged by the Extension Company for transmission of telegraphic messages by means of the said cables shall be reduced upon the terms and in consideration of the guarantee hereinafter contained : Now these presents witness, and it is hereby agreed and declared, as follows : — 1. The Extension Company will, from and after Ist January, 1893, transmit all telegraphic messages passing over the said cables at the following rates, which rates are hereinafter referred to as "the new rates," viz.,— I. As regards certain intercolonial messages—that is to say, messages passing between New Zealand and the following colonies, viz., New South Wales, Victoria, South Australia, Western Australia, and Tasmania :— For all Government and ordinary messages, at the rate of two shillings for the first ten words or less and threepence for every additional word in excess of ten. For all Fress messages transmitted to or received by the New Zealand Press Association, at the rate of threepence per word ; and for all Press messages addressed to or , received by any individual newspaper, at the rate of one penny per word. 11. As regards intercolonial messages passing between New Zealand and Queensland : — For all messages transmitted from New Zealand to Queensland, at the rates specified in the preceding subclause : But, as regards messages transmitted from Queensland to New Zealand, — For all Government and ordinary messages, at the rate of eight shillings and sixpence for the first ten words or less, and tenpence for every additional word in excess of ten. For all Bress messages transmitted from Queensland to New Zealand, at the rate of threepence per word. For all "collect" messages, Government, ordinary, or Press, transmitted from Queensland to New Zealand, being replies to "reply paid" messages, the rates last named for Government, ordinary, or Press messages, as the case may be, shall be collected in New Zealand. 111. As regards international messages—that is to say, messages passing between New Zealand and any country other than the following colonies, viz., New South Wales, Victoria, South Australia, Western Australia, Queensland, and Tasmania—at the rate of threepence per word, whether the message be Government, ordinary, or Press. 2. By "Bress messages" are meant messages addressed to newspapers duly published in accordance with the respective laws relating to the publication of newspapers in force in the United Kingdom or the colonies or countries in which they are respectively published, and intended in good faith for publication in full in such newspapers, and shall include only such as are intelligible and written in English in plain language, and without the use of cipher code, groups of figures or letters, or words of concealed meaning. 3. If, during the period between the Ist January, 1893, and the 30th April, 1893, the total receipts of the Extension Company in respect of messages passing over the said cables shall be less than the sum of £8,753 (say, eight thousand seven hundred and fifty-three), or if in any year while the new rates shall continue in force by virtue of these presents such total receipts shall be less than the sum of £26,258 (say, twenty-six thousand two hundred and fifty-eight pounds), Her Majesty will cause to be paid to the Extension Company, out of the consolidated revenue funds of New Zealand, a sum equal to three-fourths of the amount by which such receipts shall be less than £8,753 (say, eight thousand seven hundred and fifty-three) or £26,258 (say, twentysix thousand two hundred and fifty-eight pounds), as the case may be. 4. Any sum of money payable under clause 3 hereof shall be paid to the Extension Company in London, in sterling money, free from all deductions, within three calendar months from the close of each year, and for the purposes of this agreement the first year shall be deemed to terminate on 30th April, 1893, and thereafter a year shall be deemed to commence on the Ist May and terminate on the 30th April following, both days inclusive. 5. If in any year while the new rates continue in force by virtue of these presents there shall be a total interruption of telegraphic communication between New Zealand and New South Wales, arising otherwise than by reason of war or any such like cause, which shall continue for more than one calendar month, inclusive of the day on which such interruption shall happen, a deduction of l-365th part of any sum payable under clause 3 in respect of such year shall be made for every day beyond the said month during which there shall be such total interruption, inclusive of the day on which it ceases: Brovided always that if such interruption shall arise by reason of war, or any such like cause, no such deduction shall be made, but the Extension Company will restore or procure the restoration of such communication with all possible despatch so soon as such cause shall have been

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