PUBLIC RECORD OFFICE
Te Tr Ti
| | | | | | | | | | | | | | |
Reference :-
C.O-885
17 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
22
I am quite sure the Government of New Zealand share the views expressed by you, Sir, in your opening words, and which personally I cordially echo to the fullest extent. We all recognise that the Pacific cable has not been established solely as a commercial undertaking, and if there has been some disappointment in the traffic returns, I feel quite sure that that disappointment is owing to remov- able causes. Once they are removed I feel perfectly certain that even financially the State undertaking will prove a complete success.
As a preliminary step to an amicable settlement I would suggest that the Government of the Commonwealth be communicated with respecting the cancella- tion of the New South Wales Agreement and the amount of compensation to the Company which may be required.
As to the payment of the compensation, I have no instructions on that point, but I am quite sure the New Zealand Government would take a generous view of it. I have already said that we regard an amicable and speedy settlement of the first importance, everything else is secondary. In my own judgment it would even be better that all the partners should agree to participate in the payment of com- pensation than to leave unremoved any cause for dis-satisfaction. Such participa- tion can be obtained very easily if it be agreed to make the amount of compensation a charge against the eventual surplus profits of the Pacific cable. These are my views, Sir.
The EARL OF JERSEY: I am instructed by the Commonwealth Government to traverse the view which Sir Sandford has expressed that the telegraphic agreement with New South Wales was inconsistent with the previous understanding between the various partners. The Commonwealth Government is perfectly prepared to give equal facilities and preferences to the traffic of the cable, and I must also point out that the Commonwealth Government found themselves obliged to accept the position of the New South Wales Agreement when they came into office, otherwise they would not have tried to substitute another agreement with the Eastern Exten- sion Telegraph Company, apparently intended to limit the duration of that Agreement.
Whether it does so or not is another matter, but, of course, I should be prepared to convey to my Government the views of the Conference and the views of Sir Sandford Fleming and Sir William Mulock upon any matter which they might desire to have placed before it.
The CHAIRMAN: I note, Sir Sandford, that you used the word "speedy"; that you desire an amicable and speedy settlement, and it occurred to me whether by talking among ourselves here we could find out as regards your first question, whether it would be worth while to propound that first question to the Common- wealth, provided that we could meet you by, at any rate, arriving at resolutions, which would show that you had raised that point and held a firm opinion upon it. That question is, you will remember, the practicability of cancelling the New South Wales Agreement. I may be wrong, you will correct me, but I rather inferred from the observations that you have just made that though you would like that Agreement to be cancelled you did not anticipate that it was really practical to do it at the present moment.
Sir SANDFORD FLEMING: There may be a legal difficulty which I do not under- stand.
The CHAIRMAN: Yes.
Sir SANDFORD FLEMING: I am speaking entirely as a layman.
The CHAIRMAN: Oh, quite; am I right in supposing that if your second ques- tion were answered in a way that was satisfactory to you the first need not be answered by the Commonwealth, but may become subject of record here as showing the view you entertained with respect to it.
Sir SANDFORD FLEMING: Well, I think it would be desirable that the Common- wealth should quite understand that we are not unanimous here in our acceptance of that Agreement.
The CHAIRMAN: Yes.
Sir SANDFORD FLEMING: Of course it may mean a day or two, or a year or two. The CHAIRMAN: I do not want in the least to pin you to undue haste in the
23
matter, but I rather thought it would be possible that we might arrive here at a little way towards an agreement.
Sir SANDFORD FLEMING: Possibly.
The CHAIRMAN: Which might be suggested to the Australian Government by Lord Jersey, and which, at any rate, if it were accepted, would take us some way on the road towards the amicable settlement, and, I think, might leave you quite unprejudiced. For instance, supposing we could agree here that the Common- wealth Agreement should be amended in the way that has been suggested by our legal adviser, and be taken, therefore, for ten years and no longer, would not that go, at any rate, some way; do not say that it finishes the matter at all; I do not say that for a moment; would it not go some way towards making ultimate arrangements?
Sir SANDFORD FLEMING: I daresay that it would. Of course, i would have to put the whole matter by cablegram before the New Zealand Government. I can only speak according to the very strong rule of my instructions.
The CHAIRMAN: Yes.
Sir SANDFORD FLEMING: I am not able to speak my own views; 1 am speaking the views of the Government so far as I know them.
The CHAIRMAN: Yes.
·
Sir SANDFORD FLEMING: I might say, Sir, that I took the trouble a few months ago to go as near New Zealand as I could. I went to the north end of the Pacific cable, so that I might communicate closely with the Premier and the Postmaster- General, and had quite a long exchange of messages and views, and these views were subsequently confirmed by a written communication to me, so that I feel that I know pretty thoroughly what they think about it, and it would be presumption on my part to communicate with them suggesting pooling after the strong words they have used, without having something definite to place before them.
me,
to
The CHAIRMAN: I quite understand that.
Sir SANDFORD FLEMING: They might imagine that the suggestion comes from
which it does not.
The CHAIRMAN: Oh, I quite understand that, but the proposal I was making
would leave you a perfectly free hand with regard to pooling. Sir SANDFORD FLEMING: Yes.
you
The CHAIRMAN: Would not commit you in any way with respect to that.
Sir SANDFORD FLEMING: No.
The CHAIRMAN: The proposal I was making is that if the remainder of the Conference agreed to Sir William Mulock's suggestion that the Commonwealth Agreement should be amended in the way suggested we might perhaps ask you to telegraph that.
Sir SANDFORD FLEMING: Yes.
The CHAIRMAN: To your Government, saying that that was the view. I am assuming for the moment that it is; of course, we have not got the opinion yet; to telegraph that to your Government saying that that was the opinion of the Confer- ence to which you might express your own view.
Sir SANDFORD FLEMING: You may well believe that I will do anything I can
to promote a speedy and satisfactory settlement.
The CHAIRMAN: I think that I may assure you that it does not commit you
in any way with regard to a pooling agreement, neither does it divest you or divest the Pacific cable of any of its fighting powers, if I may so call them, of the com- petitive powers with the Eastern Telegraph Company.
Sir SANDFORD FLEMING: I am inclined to think, Sir, that if we were to inform the Commonwealth Government that we are not unanimous on the subject of that Agreement their Parliament, I understand, is sitting now, and for anything we