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The CHAIRMAN: I do not think we can credit the New Zealand Government with the desire to meet in Conference and to repudiate any compromise, from whatever quarter it proceeds.

Mr. PEMBER REEVES: No, Sir.

The CHAIRMAN: I am quite sure that would not be the view of the Government or yourself, Mr. Reeves.

Mr. PEMBER REEVES: Certainly, I should hope so too. Of course it is quite obvious that the object of this Conference is to come to some modus vivendi, and I should hope my Government-I have no doubt my Government has that in view. The only question is whether, as I say, we ought not to confer with them by cable.

The CHAIRMAN: I think we had better pass this resolution or put this resolution to the vote, and if the New Zealand representative does not feel able to assent to it till communication, I would not mind myself accompanying it with an expression of my belief that after communication with the Government, that New Zealand will probably assent too. I think I might go that distance on what we have heard from Mr. Pember Reeves and Sir Sandford Fleming. But I understand you do not wish to commit yourself until actual consultation. At the same time I am extremely reluctant that the matter should be hung up at all, as we are all anxious to get on.

Sir WILLIAM MULOCK: I would suggest that we do not take a vote on the ques- tion. I do not think it would be expedient to have any one of the Governments here represented voting against the others. We had better try and carry everyone.

The CHAIRMAN: I quite agree.

Sir WILLIAM MULOCK: Carry all things unanimously. It might be very well observed in the cable despatches that the proposed cablegram represents the views of the Conference, if New Zealand can see its way to falling in with it.

The CHAIRMAN: Yes.

Sir WILLIAM MULOCK: I regard it as most essential that New Zealand should feel that we are most zealous for her interests, and most careful of her views, and that it should not be said that we carried even a resolution against the views of New Zealand, but all in this resolution, if conceded, would be clear gain to the Pacific Cable Company.

The CHAIRMAN: Is what?

Sir WILLIAM MULOCK: What is here suggested would be all velvet to the Pacific Cable.

The CHAIRMAN: Oh yes.

Sir WILLIAM MULOCK: And, therefore, I do not see how any of the Governments concerned can really take exception.

Sir SANDFORD FLEMING: I think that suggestion of Sir William Mulock's is a very good one, and you will probably send a copy of the telegram to New Zealand.

The CHAIRMAN: Oh surely; certainly.

Sir WILLIAM MULOCK: The very fact that we tell New Zealand that we approve of a certain course, if she sees her way to falling in with it, will be an argument with New Zealand itself.

Mr. PEMBER REEVES: Oh yes.

The CHAIRMAN: How long do you think it would be before you could get a reply from New Zealand?

Mr. PEMBER REEVES: Well, I could ask them to reply very urgently, and we might get the reply-I should hope we should get a reply-to-morrow morning.

The CHAIRMAN: Well, I think we might.

Mr. PEMBER REEVES: It is a question of hours. Of course our difficulty really is this, Sir, I may say so at once and I should like Lord Jersey to hear it, that.

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I certainly have not, and I do not know that Sir Sandford has, any con- ception of how far the Commonwealth Government is prepared to go in meeting the other partners. We are in the dark, and, of course, we feel very much hampered by that.

We have been strung up to a condition of very great exasperation, and we now meet in Conference, and, as far as I know, the Commonwealth Government has no proposal to make by way of settlement.

The CHAIRMAN: Everybody who thinks for a moment must see that this is a sub- stantial advance in favour of the Pacific Cable Board pro tanto. It does not prejudice the future in any way, and it seems very remarkable that anybody should not accept that concession.

Mr. PEMBER REEVES: Will the Commonwealth?

The CHAIRMAN: I do not know; we are inviting them to accept; we want that invitation, of course, to proceed, not merely with the weight of a majority of the Conference, but by the whole of the Conference. However, I think it is worth while, if you are so sanguine as to expect you will get the reply to-morrow, perhaps, though I really cannot promise to be here, that we had better adjourn once more with the effort to get the approbation of the New Zealand Government, and then go forward with this as a unanimous resolution, otherwise, Gentlemen, I agree with what Sir William Mulock so well said, that would be very desirable not to detach, even apparently, any one Government from the resolution.

Sir SANDFORD FLEMING: Would it not be, Sir, advisable, everything considered, to begin the communication to the Commonwealth Government in some such way as this: Is it practicable to cancel the New South Wales Agreement with the Eastern Extension Company by compensating the Company, or otherwise?

The CHAIRMAN: I thought we had discussed that and arrived at the conclusion that that was not, perhaps, the most persuasive way of putting it to them.

Sir SANDFORD FLEMING: The persuasion follows: if it is not practicable go on. The CHAIRMAN: I think Lord Strathcona's words do that in substance--the words that he suggested here: "The Conference, therefore, invites the Commonwealth, either to rescind the agreements, or to amend them," in the sense that we have said. I think that is the same point, and puts it rather shorter. We have tried rather hard to meet you, Sir Sandford, I think in that.

LORD STRATHCONA: Yes,

Mr. PEMBER REEVES: We might, of course, indicate to our Government that it is probably the best they can get from the Conference, and, in asking them for a prompt answer, personally, may say frankly I should be prepared to cable if Sir Sandford saw his way to agree, and if Mr. Johnson would give us facilities, we might despatch a cable message from this office.

The CHAIRMAN: Yes.

Mr. PEMBER REEVES: Now, begging for an answer.

The CHAIRMAN: Yes.

Mr. PEMBER REEVES: Of course this is entirely subject to Sir Sandford; it is mere suggestion from me.

Sir SANDFORD FLEMING: There would not be much gained by making it so urgent; to-morrow is a holiday.

Mr. PEMBER REEVES: They could make up their minds quickly enough.

The CHAIRMAN: I had better just take the words of the resolution down: "The Conference is advised by the legal adviser of the Colonial Office that the New South Wales Agreement with the Eastern Extension Telegraph Company is interminable except with the consent of the parties thereto; also that the proposed Common- wealth Agreement is unsatisfactory; in that it does not expressly rescind the New South Wales Agreement, nor itself terminate unconditionally at a fixed date Conference, therefore, invites Commonwealth Government to undertake either to

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