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PUBLIC RECORD OFFICE

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TILLC.O-885

PUBLIC RECORD OFFICE, LONDON

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Sir SPENCER WALPOLE: Energetic competition" seems quite enough.

The CHAIRMAN: "Energetic competition." yes, I think that is right.

Sir SANDFORD FLEMING: Here is what Mr. Reeves suggests, that subject to any arrangement which may be sanctioned with the Eastern Extension Telegraph Company

The CHAIRMAN: What are your words?

Mr. PEMBER REEVES: That subject to any arrangement which may be sanctioned with the Eastern Extension Telegraph Company for the division of business. I wanted to emphasise the fact that it will require sanction. We cannot move unless we have the permission of our Government to do this; sanctioned by the contributory Governments; that is what I mean.

The CHAIRMAN: I am afraid I do not see the object of these words. Any arrangement must be sanctioned by the Governments; nothing that we can do here can bind the Governments.

Mr. PEMBER REEVES: No doubt, but I should like to see that embodied in the resolution. That is what I mean.

Sir WILLIAM MULOCK: In a matter of this kind I presume the Board would, without even being pressed, ask the Governments their opinion on a scheme of this kind.

Sir SPENCER WALPOLE: There would be no doubt whatever.

Sir WILLIAM MULOCK: You might assume that, I think.

Mr. PEMBER REEVES: I should like it in black and white; we are in a very delicate position; Sir Sandford Fleming and myself I think practically received something like express instructions from our Government not to consent to a pooling arrangement, or at any rate we have had a telegram indicating our Government's extreme dislike to a pooling arrangement. I should like as a sort of safeguard to have those words in subject to any pooling arrangement or any business division which may be sanctioned by the contributory Governments."

Sir SANDFORD FLEMING: Why put anything in that particular part of the resolution?

The CHAIRMAN: Sir Sandford Fleming agrees that the words need not be added. We will take the third resolution as agreed to. Now, then, the fourth :-

"4. That the Pacific Cable Board should not enter into any pooling arrangement, except on a basis which, on the figures of 1904, would have increased the nett traffic receipts of the Board in that year by £20,000."

Sir SANDFORD FLEMING: By "at least £20,000.”

The CHAIRMAN: Yes.

Mr. PEMBER REEVES: Of course I should like to see an expression of opinion for the guidance of the Board, to the effect that it should be our object to secure 5-12ths of the ordinary traffic as a minimum; of course we want to get one-half.

The CHAIRMAN: Might we add after "£20,000" the words approximately half the Melbourne and Sydney traffic."

Sir SANDFORD FLEMING: I like that.

The CHAIRMAN: Very well, then, as amended is that agreed?

AGREED

or so as to secure

The CHAIRMAN: Now these are all the resolutions I was venturing to propose

to the Conference at the present moment. There remains the question as to who shall undertake the task of negotiating.

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Sir SPENCER WALPOLE: I suppose no negotiation with the Eastern Extension Telegraph Company can take place before the preliminary conversation that Lord Jersey will have with the Chairman of the Company. That must be the first thing; we cannot go to the Company before that.

The CHAIRMAN: No, I do not think we can. Is it possible to get any further to-day, now we have carried these four resolutions, than that Lord Jersey should see a representative of the Telegraph Company.

Sir SANDFORD FLEMING: I would like to ask, you were not here at the Committee meeting?

The CHAIRMAN: No.

Sir SANDFORD FLEMING: And we thought it well to inform the Federal Govern- ment of Australia of the detriment the concessions to the Eastern Extension Tele- graph Company had done the Pacific Cable. Calculations were made by various people at this table, and we found that the financial position of the Pacific Cable was prejudiced to the extent of not less than £25,000, and we thought it would be helpful to them in giving an answer to the communications sent them if they knew What I would that fact, and we asked that a telegram of that sort should be sent. wish to ask now is whether that telegram was sent informing them of the fact that the Pacific Cable was injured to the extent of £25,000 a year by the concessions granted to the Company.

The EARL OF JERSEY: Yes; the telegram was sent, "The Conference desires in support of telegram of yesterday to remind you that the concessions in New South Wales and Victoria involve loss to Pacific Cable of not less than £25,000 per annum.”

The CHAIRMAN: That would not in the ordinary course be answered, I think. Sir SANDFORD FLEMING: No.

I presume,

Sir WILLIAM MULOCK: Well, Mr. Chairman, it only remains now, for the Conference to determine who shall bell the cat. I would suggest that Sir Sandford Fleming should be one of those gentlemen. He has had some experience of this sort of work; he and Sir Spencer Walpole I think might be able to do the whole work.

Sir SANDFORD FLEMING: I do not know that I am the best person to come into contact with them; I am quite willing to do anything to promote a settlement, but I am not sure that I am the best man.

Sir WILLIAM MULOCK: I think we can depend upon you

Sir SANDFORD FLEMING: I think you yourself would do better.

Sir WILLIAM MULOCK: I think you have had a great deal more experience in matters of this kind.

The CHAIRMAN: For my part, I should be more than happy if Sir Sandford would be associated with Sir Spencer Walpole.

Sir SPENCER WALPOLE: I need hardly say it would be a great pleasure to me to work with Sir Sandford Fleming.

Sir SANDFORD FLEMING: Oh, it would be an equal pleasure to me to do every- thing in my power to advance matters.

Sir SPENCER WALPOLE: I do not understand the Conference delegates to Sir Sandford Fleming and myself any duties until after the preliminary negotiation by Lord Jersey.

Sir WILLIAM MULOCK: What I understand is that Lord Jersey will have an informal conversation with the Chairman of the Eastern Telegraph Board; he will intimate to him that we are about to embark on a very active campaign, unless very satisfactory arrangements for division of traffic is arrived at.

I have

The EARL OF JERSEY: I do not think that is quite my position, is it? to see the Chairman of the Eastern Extension Telegraph Company, and I have

to tell him that this Conference desires the absolute rescission of the New South Wales Agreement, and the limitation of the Commonwealth Agreement to ten years; these are the only two points I have to tell him definitely.

Sir WILLIAM MULOCK: Yes.

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