CO885-(16-18) — Page 230

PUBLIC RECORD OFFICE

Reference :-

C.O-885

17 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO

and it is not, and was not, I think, regarded even by those who started it merely as a commercial undertaking; I doubt whether mere profit and loss were in their minds solely. It was, no doubt, in its initiation largely promoted by the desire that all had for greater Imperial unity, and I think this circumstance must make us all feel on the present occasion that it would be honourable to all if an adventure, under- taken under such auspices and with such an ideal, could be conducted to a prosperous and successful issue. It would be conversely very deplorable in the interests of those objects if the first practical extension of them should prove a source of friction or of failure.

I am sure that we all meet, therefore, upon the present occasion with the very earnest desire to accommodate such differences as have arisen. With your assent, I may perhaps say that the reference* to the Conference seems to me at the present moment a little out of date. There was a very acute controversy at the time that the reference was first drawn up, and a method of composing controversies and differ- ences when they have arisen is by referring them to a conference, and by placing the subject of those differences quite clearly down upon the paper. But from one cause or another, the Conference has been postponed for a very considerable time, and although from some points of view the lapse of time is to be regretted, yet from the point of view of the placating of the controversies, I hope it has not been altogether without use. Certainly it has altered the situation in one respect. We seem, I think, to have all arrived, so far as I have been able to gather from the little con- versation I have had with the members of the Conference, at the conclusion that we have reached a stage when an amicable settlement of this matter would be the best settlement.

The principal question for our discussion this morning, leaving the minor questions in the background, is with regard to the Agreementst as to the opening of offices in Australia by the Companies, one of those Agreements being provisional and the other being concluded; and what I cannot help feeling myself, coming late into the matter, and I hope without prejudice, is that whatever the merits have been, and we may not be able entirely to avoid them in discussing it, whatever may have been the original merits or demerits of the case, the matter now has been left untouched for so considerable a period that it would perhaps be the most businesslike way to look at these Agreements and the opening of the offices in the light of accom- plished facts; and to see whether taking these facts as being either more or less accomplished, we cannot arrive at a businesslike solution of the question.

I speak without the expert knowledge and without the close knowledge which I am sure many of the gentlemen here present have, but I cannot help feeling that some arrangement might possibly be arrived at in the nature of a pooling arrangement, the negotiations for which in the first instance it seems to me would probably be best carried out by the Pacific Cable Board and the representatives of the Companies. Of course, they would be subject to the desires of the Government of the Colonies and of ourselves also, but, in the first instance, I throw this out as a suggestion. Some such arrangement as that which I have described seems to me, coming late into the matter, to be probably the most businesslike one to be arrived at.

Will you express your views, Sir William, upon the situation.

Sir WILLIAM MULOCK: Mr. Chairman, I quite echo your views as to the objects which moved the various Governments, so far as I have been able to judge of them, in joining together in connection with this great undertaking, and I share your hope that it may be possible for us to solve any difficulties that at present exist, and place this institution-the service upon a safe ground and satisfactory basis.

Whilst it would be perhaps not altogether profitable to indulge in a post-mortem examination with regard to past events, it may not be possible, incidentally, to avoid referring to them. However, the main object, is, I take it, to arrange for the future successful working of the scheme. Whatever is necessary to that end, I think we are bound to accomplish. You have made reference to the Agreements; later on, perhaps, we may take them up in detail and express our views. I would, however, be unwilling to assent to what I gathered was your view that the situation to-day is to be con- sidered as an unalterable one.

The CHAIRMAN: No.

Appendix No. 1.

† Appendices No. 2 and No. 3

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

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.

go on.

Notwithstanding a

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. 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 364,957 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