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Reference :-

PUBLIC RECORD OFFICE

LTIC.O.885

7

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

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time in which the cable could be completed was considered too vague, and inviting them to state a minimum period in which they would be prepared to complete the

whole work.

In reply, we have received from them a letter, of which a copy is enclosed, stating that they are prepared to complete the cable by the end of the year 1902, if it would be satisfactory to the Committee for them to begin the work by the laying of the Fiji- Norfolk Island and Norfolk Island-Australia and New Zealand sections.

With regard to financial matters, no alteration is made in the terms quoted in their letter of the 3rd instant.

We wish to call your attention to a statement made in a former letter of ours on this subject, as the statement appears to be at variance with the fact that the Tele- graph Construction and Maintenance Company now offer to complete the whole line in a little more than two years.

In the last paragraph but one of our letter of the 4th instant we wrote:—

"It was then made clear that the engagements of the Company did not permit of completion within 2 years, and that, on the other hand, to reduc- tion in the cost, either to the Government or to the contractors themselves, could be effected by an extension of time beyond the three years.”

The explanation of this is, that we were informed that the period of three years was necessary, not for the manufacture of the cable, but because the Company's engagements did not permit of the earlier employment of their ships on this work.

This difficulty is, we understand, overcome by the decision of the Telegraph Con- struction and Maintenance Company to build a cable steamer specially for the Pacific Cable should they obtain the contract for the whole work.

We enclose a copy of our letter of the 18th instant to the Telegraph Construction and Maintenance Company,

C. 1. Davis, Esq.,

Secretary, Pacific Cable Committee.

DEAR SIR,

We are, &c.,

CLARK, FORDE & TAYLOR.

Enclosure 1 in No. 25.

Pacific Cable.

4, Great Winchester Street, London, E.C., September 18, 1900. IN reference to the date of completion mentioned in your letter of the 3rd instant, we have to inform you that the expression within (say) three years" is con- sidered somewhat vague.

We shall, therefore, be obliged you will state definitely the minimum period in which you would be prepared to complete the whole work on the terms stated in your letter above referred to.

W. Shuter, Esq.,

Managing Director,

We are, &c.,

CLARK, FORDE & TAYLOR.

Telegraph Construction and Maintenance Company,

DEAR SIRS,

38, Old Broad Street, E.C.

Enclosure 2 in No. 25.

Pacific Cable.

Telegraph Construction and Maintenance Co., Ltd.,

38, Old Broad Street, E.C., September 19, 1900. We have to acknowledge the receipt of your letter of the 18th instant, inform- ing us that the expression "within (say) three years" in our letter of the 3rd instant is considered somewhat vague, and asking us to state definitely the minimum period in which we should be prepared to complete the whole work on the terms stated in that letter.

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In reply, I beg to say that in giving the period of "say three years," we adopted the suggestion contained in your letter of the 28th August. We have carefully re- considered the matter, and if it would be equally satisfactory to the Committee for us to commence the work by the laying of the Fiji-Norfolk Island and Norfolk Island- Australia and New Zealand sections, and to finish it by the laying of the Vancouver section, we find that we could by this arrangement undertake to complete the whole line by December 31st, 1902, and we should be prepared to enter into a contract to that effect.

I am, &c.,

Messrs. Clark, Forde & Taylor.

No. 26.

W. SHUTER,

Managing Director.

PACIFIC CABLE COMMITTEE to the HIGH COMMISSIONER FOR CANADA AND THE AGENTS-GENERAL FÖR NEW SOUTH WALES, VICTORIA, NEW ZEALAND, AND QUEENSLAND. (Confidential.)

MY LORD,

SIR.

Downing Street, September 29, 1900. I AM directed by the Pacific Cable Committee to forward to you a statement summarizing the tenders which they have received for the manufacture and laying of the proposed cable.

2. I am to request that you will communicate the substance of this statement by telegraph to your Government in strict confidence, and ask them to inform you as soon as possible whether they are prepared to proceed with the scheme on the basis of the whole work being given to the Telegraph, Construction and Maintenance Company.

} 3. On this basis the total cost of establishing the cable would be £1.795.000, plus £180.000, the estimated amount of supplementary and miscellaneous expenditure, i.e., £1.975,000.

Enclosure in No. 26.

I am, &c.,

C. T. DAVIS.

Statement as to Tenders received by the Pacific Cable Committee.

A. Henley's offered to complete in 11 months for £375,000, Contract 3, in Ap- pendix of Committee's Report. This offer expired 31st August, and was subject to reservations as to the market price of raw gutta-percha.

D. Silvertown Company offer to use their best endeavours to complete, in 18 months' Contract 1 for £1,153,000, or Contracts 2 and 3, separately or combined, for £415,000 and £404,000 respectively, but will not undertake whole work. This offer expires 31st March 1901.

C. Telegraph Construction and Maintenance Company offer to complete Contract 1 for £1,067,602, Contract 2 for £388,358, and Contract 3 for £339,040, total £1,795,000. They undertake to complete any one contract by 31st July 1902, but if whole work is given them, and they are allowed to start with Contract 3 and end with Contract 1, they will complete by end of 1902, and also carry but without further charge the sound- ing and survey operations specified in Contract 4 (estimated by engineers to cost £24,000). This offer expires 31st October, 1900.

D. Siemens offer to complete Contract 1 for £1,235,000 in 12 months, Contract 2 for £512,200 in 10 months, Contract 3 for £461,500 in 10 months, total £2,205,700, but state that the time required to complete the whole work or two of its parts would be less than the sum of the several times. This offer expires 14th October, 1900.