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PUBLIC RECORD OFFICE
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Reference :-
C.O. 885
PUBLIC RECORD OFFICE, LONDON
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until we could meet among ourselves and see if we can come to some reso- lution that would be unanimous.
The Secretary of State.] I was going to make the same suggestion. It is, of course, an important matter.
The further consideration of the matter was accordingly postponed. The Secretary of State.] Probably the next question will be the question of commercial law.
PACIFIC CABLE.
Sir Wilfrid Laurier.] The next thing in the order of your remarks was the Pacific Cable.
The Secretary of State.] Oh, yes, that is very important.
Sir Wilfrid Laurier.] That was as a corollary of the trade portion. As to this, however, I understand that it would be difficult to come to a practical suggestion.
The Secretary of State.] As regards the cable.
Sir Wilfrid Laurier.] As regards the cable, yes. I understand that some members of the conference would have to consult their own Governments before coming to any definite conclusion,
Mr. Seddon.] You might say at once, Sir Wilfrid, that as far as New South Wales and New Zealand and Queensland are concerned, we are strongly in favour-
Mr. Reid.] Queensland ?
Mr. Seddon.] There are conditions, I may say, attached to it, which have weighed with us. For instance, South Australia, at a very, very large expen- diture, has made a connection through Port Darwin, and with that extension, of course, she supplies the majority of the Colonies, and by the construction of the Pacific cable that would be injured financially, and probably in the proposal we are making it might be taken into consideration. But notwith- standing that whatever the consequence may be, we feel that it is of profound importance that the closer connection should be made, and should be as far as practicable kept in British territory. It would have, no doubt, a beneficial influence upon the Colonies and upon the traffic, the business done, upon the general welfare, commercial and otherwise, of the Colonies. We deal at the present time with Canada and the United States, we send our business there, and we start cables which lead to an increase of trade and other benefits, because we are at the present time depending upon another country and upon our communication which goes through foreign territory, and which is liable to interruption and interception. We cannot do more, but the Colonies I have named are of opinion that it should be proceeded with.
Sir George Turner.] And, as far as we are concerned in Victoria, as any of the other Colonies named to have we are just as anxious this communication, and that the communication should be on British dominions; at the same time we have had an inquiry into the whole no opportunity of considering the matter, and I, for one, have had report or the evidence which was brought forward at the inquiry. to what liability will be thrown I am absolutely in the dark
we should I once pledge it that on the Colony of Victoria if
am justified in doing that until I enter into this bargain, and I do not think have had an opportunity of seeing what that liability is likely to be, and con- sulting my colleagues in connection with the matter. I should not be justi- fied in pledging the Colony to an annual liability. A large number of figures were submitted some time ago, and on investigation I found they were
as
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altogether unreliable. They were based on a wrong foundation and a wrong basis. Instead of this cable being self-supporting, if constructed, in all probability we should be called upon each year to pay a considerable sum for the purpose of making up the loss which would arise in carrying out the busi- ness of this cable, because we must bear this in mind when we have at the present time a communication which you yourself the other day said was not unsatisfactory. We know we have a rich company to deal with, and we know that the company would struggle very hard to keep the business it has, and in looking forward to a number of years, and seeing what business we are likely to do, we must not forget the fact that that company will cut down its rates in order to meet any rates we like to make, and also that the merchants and other people who use the cable will take very great care to deal with persons who will treat them best, and give them the lowest charges. It will be no matter of sympathy, but merely a question of pounds, shillings and pence. Before entering into a bargain of this kind, we ought to know where that bargain is going to land us, and what it is to cost us. While
I am thoroughly in favour of the other Colonies obtaining whatever facilities the construction of this cable might afford, I am not prepared to pledge my Colony until I have had a further opportunity of considering the financial and commercial aspects of the proposal, to see whether the amount we are likely to be called upon to pay may fairly be undertaken. It is a difficult position we are placed in and we ought very carefully to consider it before we enter
into a contract.
Mr. Seddon.] I hope there will not be any misconception, Sir George. I admit the force of your contention, but I have gone very carefully through the whole of the correspondence and the reports and brought them up to date, and on the lines there laid down, I would be myself prepared to support it and to recommend it to my colleagues, and to our Parliament. Of course we cannot here bind ourselves. It would be very improper to do it.
Sir John Forrest.] If it is a good commercial undertaking, how is it a Company will not take it up?
Mr. Kingston.] I would like to say that the position of South Aus- tralia in the matter is peculiar, and I do trust it will not be overlooked. At our own expense of more than half-a-million of money, we have constructed a trans-continental line, which, with the assistance of a line constructed in Western Australia, it seems to me is meeting all requirements at the present moment. That line has involved us in a loss during the period of its working, say of about 300,0001. Now it is proposed that the other Colonies and the mother country should combine for the purpose of construct- ing a competing line, and it is calculated that that line will take away half our traffic and involve us, of course, in a further loss of something like 20,000/. or 30,0001. a year. I have sufficient confidence in the sense of fair- play of all concerned to call attention to all these matters, and to say that whilst we are prepared to do anything which might be considered for the good of all, still we do think that the mother country and the Colonies should not combine for our injury, but should make provision for indemnifying us against loss from their action for what was undertaken certainly not on purely philanthropic grounds, but as a national undertaking which was for the benefit of all concerned. I wish also to point out that there was a resolution lately arrived at in Sydney by a conference of representatives of Australasian Governments who considered this subject.
In their seventh resolution they say, "That in the opinion of this Conference, in consideration of South Australia joining with the other con- tributing colonies in the Pacific cable project, they would be willing, jointly with Great Britain, to guarantee that Colony against further loss in connection with their trans-continental line in consequence of the construction of the new cable." That is a principle that I ask that effect might be given to. I would also call attention to the remarks made by Mr. Raikes, the Postmaster-General in 1887.
97837.
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PACIFIC CABLE.
PACIFIC CABLE.