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Fifteenth Day.

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14 May 1907.

MAIL SERVICE TO AUSTRALIA' AND NEW

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CANADA. (Chairman.)

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carrying the above project into effect such financial support as may be necessary should be contributed by Great Britain, Canada, Australia, and Ilis Majesty's Government New Zealand in equitable proportions."

That in the opinion of this suggests that it should run in this way:

Conference the interests of the Empire demand that in so far as practicable its different portions should be connected by the best possible means of "mail communication, travel, and transportation; that to this end the various Governments concerned should initiate concerted inquiry into the proposals submitted to the Conference for establishing a fast service from Great Britain to Canada, and through Canada to Australia and New Zealand, and the financial support which will be necessary for the purpose "of maintaining such a service, and also into any other proposals for similar which be submitted by any of the Governments concerned."

may* That covers Sir Robert Bond's position, I think.

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Sir ROBERT BOND: I think that is preferable to the resolution proposed by Sir Wilfrid Laurier.

Mr. LLOYD GEORGE: That will cover the route to Australia through the Suez Canal.

Sir WILLIAM LYNE: Australia has very little to do with Japan and China.

Mr. LLOYD GEORGE: I know, but that is not part of our proposal. CHAIRMAN: Do you see your way to accept that, Sir Wilfrid ?

Sir WILFRID LAURIER: I am sorry that we cannot agree. I hope we may agree upon something. Perhaps we can after all; it only wants making an effort.

Mr. LLOYD GEORGE: I hope it may be possible.

Sir WILFRID LAURIER: I must ask you at once to limit the inquiry. An inquiry means simply delay.

Mr. LLOYD GEORGE: Then we can go on to propose the method of inquiry.

Sir WILLIAM LYNE: Limit the inquiry as to the time for reporting upon it.

Mr. DEAKIN: Let us do all we can to agree. Perhaps I might occupy a moment with a not irrelevant suggestion which has been made, and as far Sir Joseph Ward has put as I know, not considered, certainly on our side. forward so clearly that it is not necessary to repeat it, the case that can be It is pointed out to me, made for a reduction of the dues in the Suez Canal.

on the best information, that those dues are levied on the capacity of the ship -the cargo capacity, whether loaded or not, and the passenger accommodation, I understand that the levy on the cargo capacity whether occupied or not. stands by itself; it measures the capacity of the vessel at its customary standard; but there seems to be force in the contention that it would be a fair thing to suggest that so far as passenger accommodation is concerned,

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(Mr. Deakin.)

the dues should be levied only on the amount of that accommodation actually occupied. Trade passing through the Siez Canal varies immensely at different seasons of the 'year, and the vessels which use the canal regularly require to provide a maximum carrying capacity for passengers. That, as I MAIL SERVICE understand, does not involve a serious addition to the bulk of the vessel, but a larger superstructure and upon this they have to pay for some months of the year when the greater part of it is unoccupied. When the question of the rates in the Suez Canal comes up for consideration and relief is being sought, if it cannot be given to the whole extent and if we are compelled to fall back upon other minor reductions which may be made, surely it is a reasonable thing to propose that, so far as passenger accommodation is concerned, the dues should be paid only on that portion which is actually occupied. Then whatever the steamer received for passenger fares, the Canal would receive its proportionate dues. This would be a considerable relief in some seasons of the year when the passenger traffic is very small. This implies no retention of the cargo dues, but is suggested as the passenger accommodation stands on a different footing. This is one practical way in which a good deal of relief could be given to the vessels using the Canal. They include vessels whose cargo capacity is seldom used to the full, but on that they have to pay, consequently their charges are high. I would be glad if Mr. Lloyd George would be good enough to note that suggestion for consideration. Probably it has reached him before.

Mr. LLOYD GEORGE: Unfortunately, we have no real control, I forget what our holding is—it is something like four-tenths of the whole, but the control is practically in the hands of the shareholders, and His Majesty's Government have no proportionate voice iu framing the schedule of rates. That has been our difficulty; in fact, the only thing we could do That would have to be by a would be to refund a part of the rates. contribution from the various Governments affected.

Sir EDWARD GREY: We have had complaints from our shipowners of the way the dues are levied.

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Mr. DEAKIN: I long since wrote despatches asking for a reduction of all the quay dues, but certainly a preference for British ships would We could pay be better secured by remitting the dues on all ships. them ourselves for our own vessels. For the first proposal you would get support from other nations, because, although their shipping is smaller than ours, they must pay the dues at the same rate.

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Sir WILFRID LAURIER: Would this be acceptable to Mr. Lloyd That in the opinion of this George? I dislike the word "inquiry." "Conference the interests of the Empire demand, that in so far as practicable "its different portions should be connected by the best possible means of mail "communication, travel, and transportation; that to this end it is advisable that Great Britain should be connected with Canada and through Canada "with Australia and New Zealand by the best service available under existing circumstances; that for the purpose of carrying the above project "into effect such financial support as may be necessary should be contributed "by Great Britain, Canada, Australia, and New Zealand in equitable

proportions."

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Mr. LLOYD GEORGE: What is the difference between that and the first resolution?

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