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absence of any means of communication except by boat between Green Island and Hong Kong.

2. As it was manifestly desirable to obviate this objection if possible, I requested Mr. Price to ascertain if a small submarine cable could be laid in connection with our general telegraphic system.

3. I have the honour to lay before you copies of the subsequent Minutes on the subject, from which you will see that this important point in the western defences of the harbour has now been brought into direct communication with the telegraphic system of Hong Kong.

4. The Members of the Legislative Council have unanimously given me the sum necessary (1,275 dollars) for this work; but, under the circumstances, I venture to ask you to get one-half of it (637 dol. 50 c.) charged to the Imperial Vote for the defences of this Colony.

I have, &c.

(Signed)

J. POPE HENNESSY.

Inclosure in No. 326.

Minute by his Excellency the Governor.

AT a meeting of the Defence Committee in April, I pointed out the necessity for- fortifying Green Island, and asked Mr. Price whether it would not be possible to lay a cable across the Sulphur Channel.

2. Mr. Price thought it practicable, and that such a cable would be most useful, not only for the project of defence, but also for our ordinary lighthouse work, as there is some- times an unfortunate delay and difficulty in communicating with the Green Island lightkeeper.

3. If the Members of the Legislative Council will support me in passing a vote for this proposed outlay, I will undertake to do my best to move Her Majesty's Government to get one-half of the cost charged to the Imperial Vote now being taken for the defence of Hong Kong.

J. POPE HENNESSY.

(Signed)

July 18, 1878.

Sir,

Letter from Great Northern Telegraph Company, dated Hong Kong, July 18, 1878.

IN regard to the proposed laying of a cable from the Island of Hong Kong to Green Island, I beg to inform you that the Company is willing to cede to Her Majesty's Govern- ment the necessary length of cable for that purpose, and to retain its repairing steamer "H. C. Orsted" for one day in order to lay the above-named cable, on following conditions:-

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1. The Company to cede the necessary length of cable of 63 tons of weight per statute mile, and the Government to pay for same at the rate of 3501. for one statute mile.

2. The Company to lay down the cable across the Channel between the above-named two islands by help of its repairing steamer, and to pay all necessary expenses connected with the work, such as cargo-boats, coolie-hire, &c.; and the Government to pay for the detention and the use of the steamer, and for the laying of the cable, the sum of 400 dollars per day; the Company undertaking to have the work executed in one day, provided that no accident to the ship or her machinery, or other cases of force majeure, prevent her from carrying out the work.

If the above conditions be agreed to by Her Majesty's Government, the repairing steamer, now in dock at Aberdeen, will probably be ready to execute the work on Saturday, beginning at daylight; and the Government would have to depute an officer to be present at the proceedings, and to take over the cable when landed and found in working order.

Expecting an early answer to the above proposals, I have, &c.

(Signed)

The Hon. J. M. Price, Acting Colonial Secretary, Hong Kong.

C. F. SCHULTZ, Secretary and Acting Superintendent.

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