PUBLIC RECORD OFFICE
C.O.
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17 PUBLIC RECORD OFFICE, LONDON
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Reynolds that the Australian traffic by the Pacific Cable is shrinking; it has fallen off considerably in fact since the last annual report for the year ending the 31st March last. It would be inadvisable, I think, for us to remain with folded arms pending these negotiations. If we are losing £25,000 a year it will pay us to lay out a portion of money now to secure a larger measure of traffic even for a year or six months. I would think it advisable therefore for us to ask the Pacific Cable Board to proceed actively with their business now in Australia, by engaging officers, can- vassing for business, opening offices if necessary; they may be temporary, they may become permanent, but as long as the present unsatisfactory state of affairs with this Cable continues so long will it be satisfactory to the Eastern Extension Telegraph Company to negotiate and to delay negotiations. I, therefore, think we ought to enter upon an active campaign; we can easily declare peace subsequently. I am shown by Mr. Reynolds a report of the meeting of the Associated Chambers of Commerce of Australia. In this report of the proceedings of the month of April, 1905, there is some very strong language used by many speakers criticising the lack of energy on the part of the Pacific Cable and they are attributing to this they use the word "mismanagement "the present unsatisfactory state of the business. Now, when we are criticised like that in Australia I do not think we ought to allow that state of affairs to last, even if some arrangement hereafter be made. I do not know how it strikes you, Lord Strathcona; what is your opinon?
LORD STRATHCONA: It is estimated that this will cost some £7,000 or £7,500, and do you wish that the Board should be authorised to expend that money if necessary in the most active competition that they consider practicable in the interests of the Board?
Sir SPENCER WALPOLE: Would Sir William Mulock be content to leave the matter in this way, that failing some satisfactory progress in the next few weeks, I will undertake to call my Board together within a month to consider what steps we shall take to carry out your views of competition?
Sir WILLIAM MULOCK: What do you say, Sir Sandford?
SIR SANDFORD FLEMING: Well, I would like to say this, that this Conference should let the negotiator clearly understand that we think that one-half of the whole traffic of these two States, New South Wales and Victoria, should pass over the Pacific Cable. Inasmuch as the Eastern Extension Telegraph Company have got the start of us, for that reason it would take some little time to recover the lost share, and, therefore, we think that we should allow them to make allowances for that in any friendly arrangement that they may enter into with the Eastern Extension Telegraph Company. The traffic for the last year if my recollection serves me was only about three-twelfths of the whole; we want to have six-twelfths of the whole. Instead of insisting upon receiving for the Pacific Cable six-twelfths of the whole traffic at once I should think that it would be reasonable to increase the traffic by a sliding scale such as four-twelfths for the present year, five-twelfths for the next year and six- twelfths for the following and all succeeding years. I think that would be in harmony with your own views, Sir Spencer; you thought it would take a little while to regain the lost ground.
The CHAIRMAN: Sir Spencer Walpole no doubt will bear the suggestion in mind in negotiating. Would you be content to leave the declaration of the war of competi- tion to be postponed for a month, until the negotiations have, at any rate, taken their preliminary form?
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The EARL OF JERSEY: I should think that would be the right thing to do. If there appears to be any inclination on the part of the Eastern Extension Telegraph Company to delay negotiations, then I think we should be justified in hurrying them up by a little vigorous action in Australia.
The CHAIRMAN: I think it would be best to leave it with an expression of that opinion, without too definitive declarations about time. If it become apparent to Sir Spencer Walpole that any obstacles by way of delay are being interposed the Con- ference desires that he should call his Board together and at once institute the steps necessary for competition.
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The Chairman's draft report* was then considered and finally approved with cer- tain amendments.
Sir WILLIAM MULOCK: Before we adjourn I think we ought to express our thanks to the Chairman for the attention and assistance he has rendered to the Conference. I, therefore, have great pleasure in moving on behalf of the Conference that we convey to Mr. Lyttelton our warm and sincere appreciation of the manner in which he has presided over our deliberations.
Sir SANDFORD FLEMING: If you want a seconder from the other side of the globe there is one here quite prepared to re-echo all you have said and a great deal more.
The EARL OF JERSEY: On behalf of another portion of the Empire I gladly give my support.
The CHAIRMAN: I am deeply indebted to the Conference for the assistance they have given me.
THE CONFERENCE THEN CONCLUDED.
* See [Cd. 2663] August, 1905.
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