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RST DAY.

22nd, 1905, at 11.30 a.m.

LYTTELTON, K.C., M.P., the Secretary of Colonies, in the Chair.

PRESENT:

JERSEY, G.C.B., G.C.M.G.

A MULOCK, K.C.M.G., M.A., K.C.

.C.M.G.

of the Conference.)

: Secretary to the Conference.

SO PRESENT :

hairman of the Pacific Cable Board.

THCONA AND MOUNT ROYAL, G.C.M.G., the High

VES, the High Commissioner for New Zealand. ́s Treasury.

wn Agent for the Colonies.

le Pacific Cable Board.)

pe you will allow me to express the cordial wel- present occasion, especially to those who have Conference. I will only say just two or three to you. I think we ought to remember that mmercial enterprise of a large character which hip by the self-governing States of the Empire,

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Sir WILLIAM MULOCK: I would not be, I think, representing the views of the Canadian Government if I were to say that we were prepared to assent to what had taken place unreservedly, unaccompanied by a satisfactory solution. I agree with you, Mr. Chairman, it will not be to the credit of the Governments concerned, or of the Board, or this Conference, if we fail on this occasion to put the matter on a satis- factory basis; and I share with you the opinion that if this joint Government scheme fails it will be many a long day before the various Governments will engage again, or endeavour to engage again, in any joint Government action. The consequences to the Empire are, therefore, in my judgment, so serious that I think we should begin our deliberations with a fixed resolve not to separate until we can unanimously reach a conclusion that promises to put the scheme upon a satisfactory basis.

There are elements at work that I think threaten the destruction of the Pacific Cable scheme; I have no doubt upon that point; and I, therefore, view the situation, the Government that I represent views the situation, with very great concern; and for that reason I agree with you, Mr. President, that we are more concerned in the future than in the past. At the same time we would not be prepared to ratify all that has taken place, except it is accompanied with something satisfactory in connec- tion with the entanglement with which we are now confronted.

Sir SANDFORD FLEMING: Mr. Chairman, since my arrival in London some weeks ago I have been endeavouring to get some information from the Cable Board, and within the past few days have succeeded. I propose to recite to you in a condensed form what I have found. I have some notes here, and have made certain calculations and put the results in tables, which, with your permission, I will read as I go on.

The CHAIRMAN: To what point were you proposing to address yourself?

Sir SANDFORD FLEMING: To read out a statement.

The CHAIRMAN: Yes. Going into the past history?

Sir SANDFORD FLEMING: Not at all.

The CHAIRMAN: The present history.

Sir SANDFORD FLEMING: Shall I proceed

The CHAIRMAN: If you please.

Sir SANDFORD FLEMING: On behalf of New Zealand I desire to say a few words: I am unable to say that the working of the Pacific Cable has proved in all respects satisfactory. I give expression to no disappointment in respect to the gross tele- graph business between New Zealand, Australia and the United Kingdom. There has been no falling off in the volume of traffic transmitted. Notwithstanding a marked business depression in consequence of a long continued drought in Australia the international cable traffic has considerably advanced. In 1901 the total tele- graph traffic between New Zealand and Australia on one side and Europe and America on the other amounted to 2,330,515 words. In 1904 it reached 2,784,220 words by both routes, being an increase of 453,705 words, or nearly 20 per cent. in three years.

What gives less satisfaction is the fact that the Pacific Cable has not received its due share of the traffic. We hold and we have the best reason for holding, as I shall shortly point out, that not less than half the whole traffic between Australasia and the United Kingdom should be transmitted by the route of the Pacific Cable.

The gross traffic between New Zealand, the Commonwealth of Australia and the United Kingdom by both routes in the year 1904 was 2,211,299 words, and of this, while 1,608,400 words were carried by the Eastern route, only 602,899 found its way over the Pacific Cable. This shortage is the more remarkable seeing that in the total of 2,211,299 there are 364,057 words of New Zealand traffic, and of this traffic, while 79,213 words were carried by the Eastern line, the much larger amount, 285,744 words, passed over the Pacific Cable.

If we for a moment exclude New Zealand, the total traffic between the Common- wealth and the United Kingdom was 1,846,342 words, and of this, while 1,529,187

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