20320

PUBLIC RECORD OFFICE

Reference :-

C.O. 885

15 PUBLIC RECORD OFFICE, LONDON

|ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

LONDON

BY DARLING & SON, Ltd.,,34-W, BACON STREET E.

1901.

No. 80. (CANADA.)

MR. BERTRAM Cox to the ATTORNEY-GENERAL.

DEAR ATTORNEY-GENERAL,

Downing Street, June 10, 1901. You and the Solicitor-General in your report of the 23rd May* (copy enclosed) reject the construction put by the Canadian Minister of Justice on the recent Agreement between the Government of New South Wales and the Eastern Extension Telegraph Company. This is as we expected, but before, we communicate the substance of your report to the Canadian Government there is a point on which I should be very glad to have your views.

2. You say that if the Minister's view is correct it would follow that not merely Government messages but all telegraphic messages from New South Wales should he forwarded by the Extension Company's lines, and you refer as against this conclusion to sections 9 and 13 of the Agreenient, where the Pacific Cable is expressly recognized as a competing line.

messages,

3. But under the International Telegraph Convention all "routed"

are called, must be sent by the route directed, and therefore, on the establishment

as they

of the Pacific Cable, messages marked by the public "via Pacific Cable" will have to be sent by that route, the only messages which the Government of New South Wales will be free to send by the route of its own choice being its own and those left "unroutel" by their senders,

4 This point seems material with reference to the Canadian contention as to the express recognition in the Agreement of the Pacific Cable as a competing line. Indeed, it is on this recognition, coupled with the second recital of the preamble and section 16, that the Canadians actually rely.

5. Further, the concern of the Canadian Government is not confined to Government messages, as your report would seem to imply: it extends to all traffic controllable by the Government, i.e., not only Government inessages but private "unrouted" messages.

6. The question which Canada regards as of vital importance is this:-" Have the Government of New South Wales (and their successors) under the Agreement given a pledge as to the transmission of (1) Government telegrams, (2) private 'unrouted' telegrams?

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7. As regards Government messages, your reference to section 9 seems to be conclusive: for if the Company reserve to themselves the right to lower the rates for such messages on the establishment of the Pacific Cable it follows that they must contemplate the possibility of Government messages being diverted to the Pacific Cable.

8. But as regards the transmission of private "unrouted" messages the section does not appear to be so decisive: for even if the Canadian view is correct, and the New South Wales Government have pledged themselves to the Company, it is necessary for the Company to retain the right of lowering their rates for these messages, because if their rates compare unfavourably with those of the Pacific Cable Board private senders would immediately route their inessages “viâ Pavific Cable" and so place them out of the control of the Government. But inferentially, I think, the section is decisive, since, it' the Government retain a free hand as to the transmission of Government telegrains, i would seem to follow a fortiori that they have not parted with their control of private

unrouted” telegrams.

9. I presume from the fact that you do not allude to the second recital of the Agreement that you attach no weight to the Canadian views as to the effect of the words "to be transmittel in the terms of this Agreement," but we should like to mention it specifically, in writing to the Canadian Government, if you could provide us with any observations with regard to it.

10. I am sorry to trouble you with such A long letter, but the matter is intricate and important, and we should like our answer to Canada to terminate the correspondence.

11. I send you the papers enclosed in my letter of the 15th May for reference.

I am, &c.,

II. BERTRAM COX.

No. 84.

9481-25-71901 W 832 D&S

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