PUBLIC RECORD OFFICE
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TTILE C.O.88
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17 PUBLIC RECORD OFFICE, LONDON
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The EARL OF JERSEY: And ask him whether he will accept the situation thus created.
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Sir Spencer WALPOLE: I do not know if I may venture to say so, but it appears to me that the probability is that Sir John Wolfe Barry will say to Lord Jersey, 'What possible inducement have you to offer me for giving up a very beneficial arrangement? You must either, I presume, have some inducement or some threat. I think Lord Jersey had better be prepared for that language.
The EARL OF JERSEY: Yes, I think so.
Sir SPENCER WALPOLE: Because I think that is the language that my friend Sir John Wolfe Barry is likely to use.
Sir SANDFORD FLEMING: The answer is this--the work they are doing to get traffic in Australia; they are spending £10,000 a year at least in doing that-a great deal more I believe.
The CHAIRMAN: We are most certainly going to spend a large sum in order to get the traffic; that is the position.
Sir SANDFORD FLEMING: And if we go into this contest with them, we hope to get £20,000 over and above the expense to us, and that will come out of their pockets; they will see that clearly.
Sir SPENCER WALPOLE: May I for my own protection ask whether Sir Sandford Fleming and I are to go on after hearing from Lord Jersey, or whether we are to wait another meeting of the Conference, and next whether all details except the £20,000 a year-I mean details like the duration of the agreement-are in the first instance left to our discretion, or whether the Conference wishes to give us any instructions upon any of these points?
The CHAIRMAN: The meeting with the Company should take place, in my judgment, after Lord Jersey has communicated with you, and before any further meeting of the Conference, and the other details might be arranged by you, subject to confirmation by the Conference.
ADJOURNED.
PACIFIC CABLE CONFERENCE.
FIFTH DAY.
Friday, July 21st, 1905, at 11 a.m.
THE RIGHT HONOURABLE ALFRED LYTTELTON, K.C., M.P., the Secretary of State for the Colonies, in the Chair.
PRESENT:
THE RIGHT HONOURABLE LORD JERSEY, G.C.B., G.C.M.G.
THE HONOURABLE SIR WILLIAM MULOCK, K.C.M.G., M.A., K.C. SIR SANDFORD FLEMING, K.C.M.G.
Mr. GEORGE W. JOHNSON, C.M.G., Secretary.
ALSO PRESENT:
The Right Honourable LORD STRATHCONA AND MOUNT ROYAL, G.C.M.G.
The Honourable W. PEMBER REEVES.
The Honourable Sir HORACE TOZER, K.C.M.G.
Mr. J. W. CAWSTON.
Mr. W. H. MERCER, C.M.G.
The CHAIRMAN: I hear, gentlemen, that you practically agreed yesterday to the purport of that which I am going to read to you now, and which I will now put by way of resolution, if you agree:
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"The Conference notes that the Australian Government have undertaken to remit all Customs duties and other charges (as specified in Section 19 of the Commonwealth Agreement with the Eastern Extension Tele- graph Company) which have been or shall be levied on the Pacific Cable Board, and invites the Dominion Government to adopt a similar course."
Does that embody the sense of what you agreed to yesterday?
Sir WILLIAM MULOCK: As I am a member of the Dominion Government, and will be obliged to adopt as my view whatever may be the policy of the Dominion Govern- ment, would not wish to be considered as voting for that resolution, because it is my duty not to put myself in a position which might be at variance with my duty to my Government when we interchange views. But I would not consider the passage of that resolution as at all an unfriendly one, and it would be a strong argument with the Dominion Government to induce them to follow the action of the Commonwealth Government. I am, therefore, not objecting to the passage of the resolution, and as far as I can express an opinion, which I might be obliged to modify in duty to my colleagues, it would be that I hope the Canadian Government will see its way to action similar to that of the Commonwealth.
The CHAIRMAN: Yes.
Sir SANDFORD FLEMING: Of course we are perfectly willing to adopt that. The CHAIRMAN: Lord Jersey, do you agree to that?
The EARL OF JERSEY: Yes.
The CHAIRMAN: Sir William has explained his position very plainly
Well now,
the matter.
I do not understand that the private conference got so far in the direction
of a resolution as regards terminal charges, but it has been suggested to me that this resolution might probably meet with the assent of the Conference:
'That the Conference considers the Australian terminal charge of 5d. a word to be excessive, and invites the Commonwealth Government to reduce it,"
but before we discuss it generally, perhaps Lord Jersey would like to say a few words on the subject of the Commonwealth terminal charge.
The EARL OF JERSEY: I am instructed to say that at the time the Pacific Cable was decided upon nothing was said as to reducing the terminal rates which then existed. The Commonwealth Government subsequently fixed the 5d. rate, which was slightly lower than the average rate previously in force in the Colonies, and they reduced their internal rate for urgent messages to 2d. per word for the purpose of developing their internal arrangements; now that internal rate of 2d. involves the Commonwealth Government in a direct loss, therefore, they are not prepared to lower their 5d. rate. I am instructed to uphold this position. We discussed it in yester- day's informal conference, and I stated then, and I presume there is no objection to my stating now, that if the Conference presses strongly their view that the 5d. ought to be reduced to 3d., I would represent it to my Government. But beyond that I cannot go.
The CHAIRMAN: I think that leaves us in a position to pass this resolution, Lord Jersey having made his position clear upon it. Do you assent to that?
Sir WILLIAM MULOCK: The resolution as read merely asking for a reduction. The CHAIRMAN: Yes.
Sir WILLIAM MULOCK: Yes, I would not like to assent to the view that any Govern- ment should charge more for Pacific Cable business than it charges for the most urgent kind of local or domestic business. That I think is the sound view to take. Therefore, I would not wish to assent to the 3d. rate.
The CHAIRMAN: I put it:
"That the Conference considers the Australian terminal charge of 5d. a word to be excessive, and invites the Commonwealth Government to reduce
it."
AGREED.