CO885-(15-16) — Page 249

35483.

SIR,

No. 174A.

(AUSTRALIA.)

THE PACIFIC CABLE BOARD to COLONIAL OFFICE.

[Pacific Cable Messages: adjustment of Terminal Rates.]

The Pacific Cable Board,

24, Queen Anne's Gate, S. W., 9th July, 1903.

WITH reference to the Chairman's letter of the 6th instant, and previous corres. pondence relative to the proposed adjustment of terminal rates charged by the various contributing Governments for the collection and delivery of Pacific Cable messages, I am directed by the Pacific Cable Board to enclose for the information of Mr. Secretary 27th March, Chamberlain a copy of a letter addressed to the Hon. H. Copeland by Sir E. Barton, in support of the terminal charges fixed by the Federal Government of Australia.

Referring to Sir E. Barton's suggestion that a copy of the opinion of the Law Officers to the Crown should have been attached to Sir Spencer Walpole's memorandum, I am to observe that the Board understand that it is not the custom of His Majesty's Government to furnish such opinions in extenso.

The question raised by the Board in their letter to the Treasury of December 2nd, 1902, was:-" Whether in dealing with the revenue at its disposal, and prior to dividing the profit or charging the loss on the cable amongst the various contributing Governments, it would be entitled to take into consideration the disproportionate terminal rates which have been, or may be, imposed by the various contributing Governments with a view to reducing such inequalities by a direct payment in the manner suggested by the New Zealand Government."

And in reply the Secretary to the Treasury, in his letter of January 8th, states:- "That their Lordships have caused the question raised in your letter of 2nd ultimo, together with the various enclosures annexed thereto, to be submitted for the opinion of the Law Officers of the Crown, and that in the opinion of the Attorney-General, whose view is, they understand, shared by the Solicitor-General, there is no objection in point of law to the course proposed."

I am to add that in confirmation of the above, the opinion of the Solicitor-General, a copy of which I am directed to enclose, was forwarded to this office on February 4th.

1903.

The Under Secretary of State,

Colonial Office.

I

am,

tc.,

HUGH LATHAM,

Secretary.

Opinion of the Solicitor-General.

In my opinion it is competent for the Board to arrange to pay a rebate to the New Zealand Government so as to redress inequalities by reason of the different terminal charges made by the Australian and New Zealand Governments respectively. So far as the Governments affected are concerned, this is only another method of reducing the charges on messages sent to New Zealand, and if such an equalisation was not permissible, it is obvious that either of the Colonial Governments could, by raising the terminal charges, obtain an unfair proportion of the profits earned.

EDWARD CARSON,

3, Dr. Johnson's Buildings,

26th January, 1903.

Temple.

25 Wt 664 8/03 D & S

3 15201

PUBLIC RECORD OFFICE

Reference :-

C.O. 885.

15 PUBLIC RECORD OFFICE, LONDON

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