No. 3.
Mr. Willis to Mr. Gresham.

Sir: Negotiations have been pending during the past week between this Government and representatives of Great Britain in regard to an ocean cable between Canada and Australia, touching at Necker Island or at this city. As there is a clause in our treaty with the Hawaiian Islands which provides against the cession of any one of them to a foreign government without our consent, it is not thought that any definite agreement will at present be reached. President Dole has been visiting the island of Hawaii and is expected home to-day, when consideration of the subject will be resumed.

The registration roll closed on Saturday night. The number registered on this island (Oahu) is 1,920, as against 1,785 at the May election. Returns from the other islands have not yet been received. The nominating convention of the American Union party of this island will meet to-day. Its nominees will be among the candidates to be balloted for at the general election to be held the 29th instant.

The indications all point to a quiet and orderly election.

Statistics setting forth the financial condition of the Government for the six months just passed, as compared with the same six months of 1893, have been compiled by the Hon. S. M. Damon, minister of finance. The taxes received during the period this year amounted to $639,606. In 1893 the taxes amounted to $736,547, showing a decrease of $96,941. This decrease, however, is more than offset by the expenditures, which, in 1893, were $814,435, while in 1894 they were $692,952, a difference of $121,483, or a total gain of $24,542 over 1893.

Conditions continue peaceful and orderly.

With renewed assurances, etc.,

Albert S. Willis.