Eastern. No. 23.
·FFICE
Reference
C.O. 882
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NOT TO
4 PUBLIC RECORD OFFICE, LONDON
Cape and Mauritius Telegraphic Communication.
This subject was first brought before Government in 1873, when the Agents of three different Companies visited South Africa and Mauritius, and entered into com- munications with the various local Governments, with a view to getting a concession from Government, on the strength of which they were to undertake to construct and lay a submarine cable from Aden, rid Mauritius and Natal, to the Cape. They all asked considerable financial support, either in the shape of a subsidy or guarantee, and the matter at that time ended in Hooper's Company entering into contracts with the three Governments to undertake the work, in consideration of subsidies, amounting in all to 18,0007. a year for ten years.
These terms were much more favourable than had been proposed by other parties, and the cable was to have been open for traffic by 31st December 1875.
Early in that year, Hooper's Company announced their inability to get up a Company unless larger subsidies were given by the Cape and Natal, and they subsequently renounced all the contracts.
At this time Lord Carnarvon, before whose notice the importance of securing tele- graphic communication with the Cape was being constantly brought from a variety of quarters, and who knew that this was fully recognized by all the Colonial Governments, instructed the Crown Agents for the Colonies to report fully as to the possibility and probability of effecting the object required.
Sir P. Julyan, in December 1875, prepared a scheme, the main features of which were that a loan of either 1,150,000l. or 1,350,000/., according to the route adopted, was to be raised by the three Colonies of the Cape, Natal, and Mauritius combined; that this loan was to be guaranteed by the Imperial Government; that a contract was to be made with some cable constructing Company for making and laying a cable; that the four Governments were to make themselves liable for certain sums annually,* the total of which it was calculated would be sufficient to pay interest on the loan, and to provide a sinking fund of 2 per cent. annually; that the receipts of the line were to be employed in paying working expenses and in maintenance of the cable, and the balance was to be distributed amongst the Governments contributing in proportion to the annual charge allotted to each:
Viz., Imperial Government, 22,5681. (besides the guarantee); Cape, 25,8481.; Mauritius, 14,4731.; Natal, 4,358/.
This scheme Lord Carnarvon recommended to the Treasury, subject to certain modifications as to the distribution of the charges and receipts, and subject to further consideration as to the route to be adopted.
The Treasury, in August 1876, refused to take part in this scheme, believing that the time would shortly come when the undertaking would be effected by private enterprise without pecuniary assistance from Government.
Since the failure of Hooper's Company to carry out their contracts, though one or two cable constructing Companies have expressed their readiness to undertake any order for Government, no distinct offer as to making and laying and working a cable has been made to the Colonial Office, until a proposal was lately put forward by Mr. Pender on behalf of the Eastern Telegraph Company and the Telegraph Construction Company. The route suggested is from Natal to Aden, via the Mozambique Channel, with a branch from the Comoro Islands to Mauritius, and the estimated cost is 1,300,000. This sum Mr. Pender proposes should be raised under an Imperial guarantee, Her Majesty's Government entering into arrangements with the Colonies concerned.
The Telegraph Construction Company offer to make and lay a cable at 2501. per mile, and the mileage of the route they propose is 5,060 miles. The Eastern Company offer to work the line for a fixed charge of 7,000l. a year. As that Company have already a station at Aden, there would certainly be a saving in working expenses by resorting to their agency there, but as both in Mauritius and South Africa the land lines are worked by Government, a more economical arrangement could probably be made at those
stations.
41089-6-2/77. Wt.15029.