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Appendix No. 5.

BERMUDA TELEGRAPH.

viâ the Azores to Bermuda; and a subsidy of 10,000., or less, a year from the Imperial Government, supplemented by subsidies from the British and French West Indies, would probably induce capitalists to embark in the undertaking.

No. 3.

I have, &c. (Signed)

HERBERT JEKYLL

Sir,

Colonial Office to Royal Commission on the Defence of British Possessions and Commerce Abroad.

Downing Street, March 10, 1880. WITH reference to the letter from this Department of the 30th January, and to your reply of the 13th February,† I am directed by the Secretary of State for the Colonies to transmit to you, to be laid before the Royal Commission on the Defence of British Possessions and Commerce Abroad, copies of further correspondence with Mr. G. F. Smith in regard to his proposals for establishing telegraphic communication with Bermuda; and I am to say that Sir Michael Hicks Beach would be glad to be favoured with the views of the Commission upon the subject.

I am, &c.

(Signed)

JOHN BRAMSTON.

Sir,

Inclosure 1 in No. 3.

Colonial Office to Mr. Smith.

Downing Street, February 18, 1880. YOU were informed by the letter from this Department of the 30th ultimo that the proposal which you submitted to the Secretary of State for the Colonies, in your letter of the 6th January, for establishing telegraphic communication with Bermuda had been referred for the consideration of the Royal Commission on the Defence of British Possessions and Commerce Abroad.

I am now to acquaint you that the Commissioners have furnished the Secretary of State with a statement of their views upon the subject; and that Sir Michael Hicks Beach, having given the fullest consideration to the matter, has arrived at the conclusion that, having regard to the objections which exist to any line of cable over which this country would have but imperfect control in time of war, the scheme which you have submitted to him is not one which he could recommend for adoption by Her Majesty's Government.

Inclosure 2 in No. 3.

Mr. Smith to Colonial Office.

I am, &c.

(Signed)

R. H. MEADE.

Sir,

15, Golden Square, February 27, 1880.

I HAVE the honour to acknowledge the receipt of your letter of the 18th instant,§ declining the proposal in reference to telegraphic communication with Bermuda contained in my letter to the Colonial Office of the 6th ultimo.‡

Such decision renders it unnecessary for the proposed Company to vary its intended direct route from Flores to North America.

Notwithstanding the unremunerative character of the traffic to Bermuda, the gentlemen organizing the Company would adopt a point at or near Halifax as one American terminus, and construct a line thence to Bermuda, if Her Majesty's Government should be willing to contribute towards such an object, and in consideration of the maintenance by the Company, would agree to give facilities for the extension of such line to the West Indies.

The distance, including requisite slack, may be assumed at about 850 miles, and the Company would construct and lay a single line to Bermuda, and maintain it as part of their system, upon the following conditions

*

1. That, on the completion of the line to Bermuda, a subsidy of 10,0007. be paid, and be continued for twenty years, provided the line be kept in working order.

2. That the Company have permission to extend their line to any of the West Indian Islands, and to duplicate their lines.

It is important for the commercial activity of the West Indian Islands, as well as for their defence, that more direct telegraphic communication should be established between them and England; and I shall be glad if I might be favoured with an appointment, at which I could explain more fully the features of the case, as time presses.

I have, &c.

GEO. F. SMITH.

(Signed)

* No. 1.

† No. 2.

Inclosure 2 in No. 1.

§ Inclosure 1.

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