Government to Colonel L. S. Spalding, subject to certain conditions, of an exclusive franchise for twenty years to lay cables for commercial purposes. It is reported that Colonel Spalding, on obtaining this concession, entered into negotiations having for their object the continuance to Honolulu of the cable laid by a French association between New Caledonia and Queensland. If the whole project thus contemplated is carried through, San Francisco, or some other point in the United States territory, will be placed in direct communication with Australasia, and it need hardly be observed that in that case the position of the British project from the financial point of view would be very prejudicially affected.

It seems, therefore, to Mr. Chamberlain to be highly desirable that no further time should be lost in considering the subject, and that some open step should be taken which will disabuse foreign promoters of the idea that no competition is to be feared from a British line, as recommended last year by the Ottawa Conference.

For this purpose Mr. Chamberlain would suggest that the proposed interview should take place at an early date this month.

If it then appears that there is a sufficient body of opinion in favour of considering the terms on which united action could be taken, Mr. Chamberlain would be glad to co-operate in the appointment of a joint commission, or to lend his assistance in any other way which may seem best.—I am, Sir, your most obedient servant,

(Sgd.) JOHN BRAMSTON.

Colonial Office,

November 13th, 1895.

DEAR SIR CHARLES TUPPER,-I am desired by Mr. Chamberlain to say that Tuesday, November 19th, at 12.30 will suit him to see you and your colleagues on the cable question, if that day and hour are convenient to the Agents-General.

I write at once, without waiting for your proposed visit at 5 p.m. this afternoon, as you may probably wish to make early arrangements for the interview.-Yours very truly,

(Sgd.) H. F. WILSON.

17 Victoria Street, London, S.W.,

15th November, 1895. SIR,-Acting under your instructions to give Mr. Huddart all possible assistance with the Imperial Government in regard to the fast Atlantic Service, I took an opportunity immediately on the return of Mr. Chamberlain to office after the elections on July 30th last, to call upon him at the Colonial Office, when I was able to go fully into the questions of the Fast Atlantic Service and Pacific Cable from Vancouver to Australasia.

He seemed much interested in these questions, and at his request I addressed him a letter, dated 31st July, especially with reference to the Fast Atlantic Service, of which I sent you a copy. Mr. Chamberlain wrote me a note in reply stating that he would take the subject up promptly, and hoped on his return to London after his holidays to be able to make substantial progress.

I received a short letter from him, dated "Granada, October 31st," in which he says:

"Before I left I put forward the matters of the Fast Atlantic Service and the Pacific Cable. As soon as I return I must have a conference with you on these and other points, and I know that I can count at all times on your cordial co-operation in all that concerns the joint interests of the Colonies and the Mother Country.'

I had the pleasure of sitting next to Mr. Chamberlain at a dinner given by the AgentGeneral for Natal on the 6th instant, and in response to the invitation of Mr. Peace, I proposed the toast of the evening, which was, The Right Hon. Joseph Chamberlain, Secretary of State for the Colonies." I took occasion to point out the great opportunity for statesmanship presented at the present moment in connection with the expansion of Greater Britain, and the satisfaction with which I and all my colleagues in London had welcomed his advent to the Colonial Office, in the full belief that under the auspices of the Right Honourable gentleman the colonies would reap the advantage of possessing a strong Minister of a strong Government. I enclose herewith an outline of a report of my speech, as well as of Mr. Chamberlain's reply.

On the 13th instant Mr. Chamberlain favoured me with a long interview at the Colonial Office, when he gave me an assurance that Her Majesty's Government had decided to take up the question of the Fast Atlantic Service, and also to deal vigorously with the prosecution of the Pacific Cable project, at the same time requesting me to invite the Agents-General to wait upon him in regard to the latter question on Tuesday next. He inti

mated that he would be quite prepared to appoint a Commission as suggested by the Governments of Canada, Victoria, New South Wales, New Zealand and Queensland.

You will also find enclosed a copy of an official communication, dated 11th instant, from the Colonial Office upon the subject.

In reference to the Fast Atlantic Service, Mr. Chamberlain said that Her Majesty's Government recognised its importance and were prepared to comply with the request to aid the undertaking by a substantial subsidy; and when I pressed him upon the point of the amount, said that if necessary, the £75,000 asked from the Imperial Government for ten years might be relied upon. He added that it would be absolutely necessary under these altered conditions that new tenders should be called for. When I drew his attention to the fact that a precedent had been established by Mr. Goschen, as Chancellor of the Exchequer, who, in granting a subsidy to the Canadian Pacific Railway Company at the request of the Canadian Government, had not considered it necessary that tenders should be asked, he replied that that was an entirely different case, and that the grant of a subsidy to a great corporation like the Canadian Pacific Railway Company, so vitally interested in and necessary to the success of the undertaking, took the question out of the usual category altogether. He also intimated that if this application were of the same character it would not be necessary to invite tenders. Finding that he was fixed upon this point I did not think it judicious to press it further.

In reply to my inquiry as to the mode of invit

ing tenders, Mr. Chamberlain agreed with me in the opinion that the character of the service would be clearly stated, and tenderers invited to state the amount of subsidy for which they would be willing to undertake it, Canada and Her Majesty's Government providing the subsidy in relative proportions of £150,000 and £75,000.

Mr. Huddart was, of course, greatly disappointed when I told him of the conclusion at which Mr. Chamberlain had arrived in reference to inviting new tenders. I pointed out to him, however, that he would be in a position to secure the co-operation of capitalists and shipbuilding firms upon the basis of a subsidy of £225,000 per annum, and that I had no reason to think that for a service based upon the standard of the Teutonic and Majestic anyone was likely to underbid him.

I may mention that Mr. Chamberlain stated that while Her Majesty's Government would be quite satisfied with vessels of equal speed to the Teutonic and Majestic, any proposals for ships of less speed would not be considered.

Yesterday I met accidentally Mr. Benham, the able and trusted representative of the Barrow Naval Construction Company, who built the steamers now running between Vancouver and China and Japan. I had previously introduced Mr. Huddart to Mr. Benham, in order that he might secure the co-operation of that firm. I told Mr. Benham confidentially that Her Majesty's Government had decided to give, if necessary, £75,000 per annum to secure the Fast Atlantic Service, and asked him if he would be ready to co-operate with Mr. Huddart on that basis.