CO885-(16-18) — Page 250

PUBLIC RECORD OFFICE

C.O.

Reference :-

+885

17 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

42

that may not be a matter necessary to enter upon at the present moment, if we How does it have got other and sufficiently convincing reasons without doing so. strike you Mr. Reeves?

Mr. PEMBER REEVES: Yes, Sir. I think that, in the main, that is probably the safer course to adopt. If you could possibly slightly alter the language so as to put it as emphatically as words can, that what we ask is the restoration of the status quo ante in 1913.

The CHAIRMAN: Yes. I think we seem agreed; I will read it once more in its ultimate form: Unconditional termination of Agreement at a fixed date asked in order at earliest possible moment to restore partners to their original position prior to the making of the South Wales Agreement.

Sir WILLIAM MULOCK: Yes, that is quite enough.

Mr. PEMBER REEVES: That is it.

The CHAIRMAN: "Partners may then be free to determine their policy in concert and unhampered by any agreements independently arrived at." Then refer to Sir E. Barton's letter to show the Australian Government that that is the view that their late Premier entertained.

The CHAIRMAN: May we take that to be agreed as the answer.

Mr. PEMBER REEVES: Yes, Sir, but I hope I shall not be worrying the Conference by again urging upon their attention the question of our securing a promise, a clear promise, from the Commonwealth Government to us definitely that we shall have absolute equality of rights and privileges with the Eastern Extension Telegraph Company up to 1913. My reason for doing it, is because, as I have already stated, there appears to be a different interpretation adopted by the Australian Postal Department and the Pacific Cable Board as to what equality with the Eastern Company means?

The CHAIRMAN: What is that difference?

Sir SPENCER WALPOLE: The difference is that they have given an absolute and uncontrolled wire to the Eastern; they offer us the half of a quadruplex wire; that is really the main distinction, and, of course, we could not give so perfect a service with that half of a wire as we could if we had an uncontrolled wire.

Sir SANDFORD FLEMING: Is it not also the case that at this very moment the Eastern Extension Telegraph Company are paying for that wire for their exclusive use no more that we are paying for no wire at all, or a fourth of a wire.

Sir SPENCER WALPOLE: We are paying as much as they are--5d. per word. Sir SANDFORD FLEMING: Well, we neither of us should be paying anything like 5d. a word.

Sir WILLIAM MULOCK: Inasmuch as they have not granted to us the use of any wire, they should not charge our traffic with the 5d. a word which they are charging the Eastern Extension Telegraph Company.

Sir SPENCER WALPOLE: They are carrying our traffic over their wires for us. Sir SANDFORD FLEMING: They are making us pay for it.

Sir SPENCER WALPOLE: Just as the Canadian Pacific are carrying our wires across Canada.

Sir WILLIAM MULOCK: They charge for it.

Sir SPENCER WALPOLE: I quite agree that the 5d. was an excessive rate; but, of course, they charge something for carrying our traffic over the wires.

Sir WILLIAM MULOCK: One penny; but I understand before they granted the exclusive use of a wire to the Eastern Extension Telegraph Company" the rate was

one penny.

Sir SPENCER WALPOLE: No, the rate was a varying rate all through Australia. Sir WILLIAM MULOCK: Was it?

Sir SPENCER WALPOLE: Up to the time they made this 5d. terminal rate avail- able for both systems there was a varying rate, and a complicated rate.

43

Sir WILLIAM MULOCK: Did not they increase the terminal rate to the Eastern Extension Telegraph Company in return for having granted the exclusive use of a wire to the Eastern Extension Telegraph Company.

Sir SPENCER WALPOLE: No.

The CHAIRMAN: Is the intention of the Commonwealth to grant equality to the two, the Company and the Board, anywhere expressed in writing?

The EARL OF JERSEY: Yes, certainly.

The CHAIRMAN: What do they say?

The EARL OF JERSEY: In the second question which was sent out to the Commonwealth Government with regard to the holding of this Conference, this was asked: Whether at the time when the various Governments agreed to construct the Pacific cable, as a joint enterprise, there was any understanding between them requiring the post offices of the several Governments to give equal facilities and preferences to the traffic of the cable." The answer which I am authorised to make on behalf of the Commonwealth Government is, there was such an understanding, and the duty of observing it is fully recognised by my Government. If there is any particular point in which it is said that they are not giving equal facilities and preferences, the attention of the Commonwealth Government should be drawn specifically to that point.

The CHAIRMAN: Yes.

Mr. PEMBER REEVES: Mr. Deakin finished up his telegram to you with a question, I think; and if I might venture to suggest, I think we might finish up our telegram to him with another question, adopting your draft, to add at the conclu- sion: "Docs Conference rightly understand that Commonwealth Government under- takes in the meanwhile to grant Pacific cable absolutely equal facilities with Eastern Extension Telegraph Company without any qualification whatever?

The EARL OF JERSEY: But have answered that.

Mr. PEMBER REEVES: No, Lord Jersey; I should like to have an absolute undertaking from the Commonwealth Government to this Conference, and to have it in unqualified language.

Sir WILLIAM MULOCK: Would'not the putting in of the answer of Lord Jersey meet the case?

Mr. PEMBER REEVES : think not, with all due deference to him. I would not have said this, had it not been for the misunderstanding which has already taken place between the Commonwealth Post Office and the Board. Of course, I am "Does Conference rightly referring to the telegram to Lord Jersey, when I say understand?" There is, of course, an implied reference to the cable to Lord Jersey; but I should like to have it emphasized and put beyond the possibility of any doubt.

LORD STRATHCONA: Would you refer to that specifically?

Mr. PEMBER REEVES: Well, I do, Sir, I say, “Does Conference rightly under- stand that?"

LORD STRATHCONA : Does it refer specifically to this?

mean.

Mr. PEMBER REEVES: No, I do not say more; but they would know what we

The CHAIRMAN: I would put it rather less polemically in tone, "That the Conference assumes that the Commonwealth Government will, in the meantime, grant Pacific cable equal facilities with the Eastern Extension Telegraph Company without qualification.

Mr. PEMBER REEVES: Well, Sir, of course, I do not want to be obstructive or dilatory, and though I confess I think it is a case where we ought to be really emphatic, I do not want to object to your wording.

The CHAIRMAN: I think if you assume, and they do not contradict, it is good enough.

21872

T 2