F.— 8.

No. 84. The Superintendent, Pacific Cable Station, Doubtless Bay, to the Secretary, General Post Office, Wellington. (Telegram.) ■ Doubtless Bay, 20th November, 1902. FANNING-Vancouver section : The figures certainly seem high ; but it must be remembered that the automatic will be used, therefore signals will be good, and an absolutely uniform speed maintained without the slightest pause between messages. Again, code addresses and absence of signatures help to considerably reduce length of cablegrams. I should regard 150 as the maximum. We can deal with ilO to 120 on Southport cable, where messages are considerably longer. -

No. 85. The Supeeintendent, Pacific Cable Station, Doubtless Bay, to the Secretary, General Post Office, Wellington. (Telegram.) Doubtless Bay, 21st November, 1902. Excellent time from land-line this afternoon : Mornington to Southport, fifteen minutes ; Christchurch ditto, nine minutes ; Wellington ditto, six minutes; Auckland ditto, three minutes.

No. 86. The Chairman, Pacific Cable Board, London, to the Hon. the Postmaster-General, Wellington. (Telegram.) London, 23rd November, 1902. Cable will be open to public on eighth December. . . .' .

No. 87. The Secretary, Pacific Cable Board, London, to the Hon. the Postmaster-General, Wellington. Pacific Cable Board, 24, Queen Anne's Gate, London, S.W., 25th November, 1902. g IK Doubtless Bay Station. I am instructed by the Pacific Cable Board to acknowledge your letter of the sth September, referring to the revised proposal, provisionally agreed to by Mr. Eeynolds, as to the annual amount to be paid by the New Zealand Government to this Board in the event of the Board's assuming responsibility for the total capital expenditure and working of the cable and land-line at Mr. Eeynolds supported this proposal in the belief, due to a clerical error, that the cost of the New Zealand land-line formed part of the capital cost referred to in clause 5 of Mr. Peake's memorandum [Enclosure in No. 34, F.-8, 1901]. That this line should cease to be the exclusive property of the New Zealand Government has, as you point out in your letter, never been contemplated, and, should it be deemed expedient that it be worked under the supervision of the Pacific Cable' Board, it would seem right that the New Zealand Government should defray any expense directly incidental to such arrangement. The Board observes that by the terms of Mr. Peake's memorandum the liability of the New Zealand Government would appear to be as follows: (1) Interest on half the total capital outlay on buildings, &c, at Doubtless Bay; (2) the salaries of the staff operating the land-line; (3) half the salary of the abstract and check clerks; (4) a proportion of the cost of superintendence ; (5) half the cost of repairs and other expenses connected with the buildings. The Board, however, feels that, in view of the greater number of its employees, this arrangement would hardly be equitable to your Government, and it proposes, therefore, that the New Zealand Government should pay—(l) 6 per cent, on half the capital outlay, this sum to be deemed to include the New Zealand Government's proportion of rent, repairs, and superintendence; (2) half the cost of the abstract and check clerks; (3) the actual salaries and foreign-service allowances of the operators engaged on the land-line, or, if the New Zealand Government prefer it, a fixed sum representing the mean between the minimum and maximum of these salaries as well as the foreign-service allowances. I am to add that in making this proposal the Board has carefully considered its obligation to the various contributing Governments which it has the honour to represent. It intends that these terms should form the basis of any similar agreements that may be made with any of the other contributing Governments, and trusts, therefore, that they may meet with the approval of your own T am > &c -> The Hon. the Postmaster-General, Wellington. Hugh Latham, Secretary.

No. 88. The Secretary, General Post Office, Wellington, to the Superintendent, Pacific Cable Station, Doubtless Bay. (Telegram ) Wellington, 28th November, 1902. Postmastek-General has just decided that he will not provide an all-night service for cable traffic But considers that it will be necessary that your Board provide a continuous service should the Eastern Company do so. Am advising Mr. Browning of Postmaster-General's decision.

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