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Mr. Pender proposes to fix the tariff from the Cape and Mauritius to Aden at 1s. per ord higher than under Sir P. Julyan's scheme, and he offers to allow a rebate of 50 per ent. on the present tariff from Aden to England in the case of all messages coming from ie African line. The gross earnings of the cable he estimates at 40,000, and adding e rebate the gross receipts of the line would be 55,7501.; deducting working expenses id the estimated annual charge for a repairing ship (10,0007), this would only leave a turn of 3 per cent. on the estimated cost of the cable. M. Pender reckons that e Colonies would contribute subsidies to the extent of 27,500/, and by adding this sum the net earnings, and deducting the charge for interest that a guaranteed loan would tail, he arrives at the conclusion that a surplus of 23,000/. a year, or 1 per cent., ould be available for a renewal fund.
The French Government promised Hooper's Company an annual subsidy of 2,500/,, nd Mr. Pender believes that they are now disposed to increase this sum;
but against y such subsidy there would have to be set the working expenses of another station at ourbon, even assuming the earnings of the branch to pay interest on the cost of another 0 miles of cable.
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It is not known whether the Colonial Governments would give the subsidies mentioned y Mr. Pender; they would probably expect the Imperial Government to contribute mething more than the mere guarantee, for assuming this to be given, it may be ckoned that a charge of from 30,000l. to 35,000l. would, in any case, remain to be id by the Colonial Governments, in order to allow of an adequate renewal fund being ovided.
The estimates of the various Companies and of Sir P. Julyan do not vary materially, ther in respect to cost of construction or respect to the traffic receipts; these timates obviously show that the enterprise cannot at present be remunerative without aterial assistance from the Governments concerned.
In the meantime, Her Majesty's Government are left without adequate means of mmunication with most important military and naval stations, the absence of which, the event of war, might involve a loss or entail an expenditure which it would be possible to measure financially in comparison with the amount of the guarantee now >posed.
The Imperial Government have already guaranteed loans in the case of Canada and ew Zealand, in order, in the one case, to promote confederation, in the other, to ugurate & safer and less costly native policy. In the case of South Africa, the ly attainment of these two objects is of urgent importance, and would be much vanced by the announcement that the Imperial Government would give material istance to a well-considered scheme for telegraphic communication. With this policy ablished, it would become possible to reduce considerably the annual military enditure in South Africa, and the risk of dangerous and expensive native wars would removed, or at least greatly diminished.
F. R. R.
16th February 1877.
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Reference
C.O. 882
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