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Appendix No. 5. Stanley considers this proposal to be deserving of every reasonable support from Her Majesty's Government, and that he fully concurs in the suggestion to refer the question to the Royal Defence Commission for their opinion.

BERMUDA TELEGRAPH.

I am, &c.

(Signed)

RALPH THOMPSON.

Inclosure 4 in No. 1.

Admiralty to Colonial Office.

Sir,

Admiralty, January 22, 1880. I HAVE laid before my Lords Commissioners of the Admiralty your letter of the 16th instant,* referring to the proposal of Mr. G. F. Smith, on behalf of a Company which is in process of forma- tion, for establishing a telegraph line between England and North America, which would place Bermuda in direct communication with this country and with Halifax, either through England or through the United States, if Her Majesty's Government would sanction a subsidy of 10,000l. per annum for twenty years. Mr. G. F. Smith has, however, stated to the Secretary of the Admiralty that the amount to be paid by the Government was quite open to discussion.

2. In reply, my Lords desire me to request that you will inform the Secretary of State for the Colonies that they will be very glad to see a telegraph laid so as to place Bermuda in communication with this country and Halifax, but the sum asked appears to their Lordships to be excessive.

3. My Lords further desire me to observe that the line between Halifax and Bermuda proposed in 1877, and which formed the subject of Colonial Office letter of the 7th February, 1877,† and Admi- ralty reply dated 8th March of the same year, would be preferable to the one now put forward if it could be obtained at a not greater cost.

I am, &c.

(Signed)

ROBERT HALL.

Inclosure 5 in No. 1.

Admiralty to Colonial Office.

Admiralty, March 8, 1877.

Sir,

WITH reference to former correspondence respecting the necessity for telegraphic communication between Bermuda and Halifax being made, I am commanded by my Lords Commissioners of the Admiralty to acquaint you, for the information of the Earl of Carnarvon, that the Treasury have stated, in reply to a communication addressed to them by their Lordships, that they are not prepared to sanction any expenditure of public funds for this purpose.

I am, &c.

(Signed)

ROBERT HALL.

Inclosure 6 in No. 1.

War Office to Colonial Office.

Sir,

War Office, February 16, 1877.

IN reply to your letter dated the 21st December, 1876, transmitting copy of a letter addressed to the Earl of Carnarvon by Mr. Walter Armstrong, inquiring whether Her Majesty's Government would be prepared to lay a telegraph cable between Bermuda and St. Thomas, I am directed to acquaint you that, since the receipt of the letter under reply, the Secretary of State for War has been in communi- cation with the Lords Commissioners of the Admiralty on the subject, and that he takes the view expressed by their Lordships' letter to you of the 22nd ultimo,§ that telegraphic communication ought to exist between Halifax and Bermuda,

I have, &c. (Signed)

J. L. A. SIMMONS, Lieutenant-General.

Sir,

Inclosure 7 in No. 1.

Colonial Office to Admiralty.

Downing Street, February 7, 1877. I AM directed by the Earl of Carnarvon to acknowledge the receipt of your letter of the 22nd ultimos upon the subject of a proposed cable between Halifax and Bermuda.

In reply, I am to state, for the information of the Lords Commissioners of the Admiralty, that Lord Carnarvon would be glad to support the proposal in the interest of Bermuda, but that his Lordship could hold out but little hope of any substantial financial support, as the revenue of the Colony is only about 30,000l. per annum.

I am, &c. (Signed)

W. R. MALCOLM.

*Inclosure 1.

Inclosure 7.

Inclosure 5.

§ Inclosure 8.

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