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PUBLIC RECORD OFFICE

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C.O-885

17 PUBLIC RECORD OFFICE, LONDON

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APPENDIX No. 1.

Questions referred to Pacific Cable Conference:

(1) Whether at the time when the various Governments agreed to con- struct the Pacific Cable as a joint enterprise, there was any understanding between them (a) with which the action of the New South Wales Government in entering into the Agreement of 16th January, 1901, with the Eastern Extension Telegraph Company was inconsistent, or (b) with which the action of the Commonwealth Government in arranging the subsequent modification of that Agreement was inconsistent, or (c) requiring that the Post Offices of the several Governments should give equal facilities and preferences to the traffic of the cable, or (d) governing the basis on which the terminal charges on the traffic of the cable should be fixed, or (e) requiring the exemption of the stores, ship, and other property of the Pacific Cable Board from local

taxation.

(2) Having regard to the answers to these questions, if it should appear (a) that any of the contributing Governments has taken action inconsistent with such understanding what steps should now be taken to readjust its position towards the other Governments, or (b) that such understanding does not extend to any of the matters above mentioned what arrangements can now be made to define more closely the respective rights and obligations of the various Governments.

(3) Whether anything more than at present can be done to attract business to the Pacific Cable, and, if so, what.

APPENDIX No. 2.

AN AGREEMENT dated January 16, 1901, and made between The Government of the Colony of New South Wales by The Houourable Henry Copeland, Agent-General for New South Wales, of the first part, and The Eastern Extension Australasia and China Telegraph Company, Limited (hereinafter called "the Extension Company "), of the second part." Whereas the Colony party hereto of the first part and the Colonies of South Australia, Western Australia, and Tasmania are hereinafter referred to as "the Contracting Colonies : '

And whereas the telegraphic traffic between the Contracting Colonies. Victoria, New Zealand, Queensland, and New Caledonia, on the one side, and Europe, and when transmitting Europe, all other countries beyond Europe on the other side, to be transmitted in the terms of this Agreement (hereinafter called "the Australasian traffic ") is carried by the cables and telegraphic lines of the Extension Company in connection with lines belonging to the Indo-European Telegraph Department of Her Majesty's Indian Giovernment the Eastern Telegraph Company Limited thereinafter called the Eastern Company" and the Indo- European Telegraph Company Limited (hereinafter called "the Cis-Indian Administrations") and the lines and cables connected therewith:

And whereas the present rates for the transmission of the Australasian traffic are governed by four agreements the first dated the 1st day of March 1891 and made between Her Majesty the Queen of the one part and the Extension Company of the other part the second dated the 18th day of December 1892 and made between Iler Majesty the Queen for account and on the authority of the respective Governments of New South Wales, Victoria. South Australia, Western Australia, and Tasmania, of the first part, Her Majesty the Queen on account and by the authority of the Government of New Zealand of the second part and the Extension Company of the third part, and the third dated the 30th day of April 1895, and made between Her Majesty the Queen by the authority of the Governments of New South Wales, Victoria, South Australia, Western Australia, Tasmania, and New Zealand of the one part and the Extension Company of the other part, and the fourth dated April 14 1900, and made between the Government of the Colony of South Australia of the first part, the Government of the Colony of Western Australia of the second part, the Colony of Tasmania of the third part and the Extension Company of the fourth part :

to

And whereas under clause 8 of the said Agreement of the 31st day of March 1891, and clause 1 of the said Agreement of the 30th day of April 1895. the arrangement as rates for the Australasian traffic might be determined by notice, such notice being not less than two calendar months' notice in writing expiring on the 30th day of April 1900, or the 30th day of April in some subsequent year and given either by the Extension Company to the Agent- General of South Australia or by such Agent-General to the Extension Company in manner mentioned in the said clauses:

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And whereas the Extension Company in accordance with the said clause 8 gave notice which expired on the 30th day of April 1900 to determine the then existing arrangement as to rates for the Australasian traffic:

And whereas it is intended that the rates for the Australasian traffic shall after the 1st day of January 1901 be those hereinafter mentioned:

And whereas the present terminal stations in Australia of the Extension Company's sub- marine cables are situated at Port Darwin in the Colony of South Australia and Roebuck Bay In the Colony of Western Australia:

And whereas it is intended that the Extension Company in co-operation with the Eastern Company shall lay a new cable between Durban in the Colony of Natal, South Africa, and Australia as hereinafter provided hereinafter called the New Cable, and such cable is in course of manufacture:

And whereas a project has been set on foot by the British Canadian and certain Australasian Governments for laying a cable to be known as and herein referred to as "the Pacific cable":

Now this Indenture witnesseth and it is hereby agreed and declared by and with the Colony of New South Wales and their successors and the Extension Company their successors and assigns as follows, that is to say:--

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1. As from January 1 1901 the rates for the transmission of the Australasian traffic by the existing lines and cables and from and after the opening for traffic of the New Cable as hereinafter mentioned, the rates for the transmission of such traffic and the apportion- ment of such rates on either cable shall (subject to the provisions of Article 5 hereof) be the rates and apportionment specified in the Schedule hereto (Table B). Provided always this shall only apply to the Contracting Colonies.

Government Telegrams" are meant 2. In these presents and the Schedule hereto by political or administrative telegrams sent from or to Her Majesty and by Her Majesty's Principal Secretary of State for the Colonies or any Government Department in the United Kingdom or the respective Agents-General for any of the Contracting Colonies on the one hand and by the Governors, Ministers, or any officer in charge of any Government Department of any of the Contracting Colonies on the other hand, on matters relating to the public business of the snid Colonies or any of them.

3. By "Press Telegrams " are meant telegrams addressed to any newspapers duly published in accordance with the respective laws relating to the publication of newspapers in force in the United Kingdom or the Colonies or countries in which they are respectively published, and intended in good faith for publication in full in such newspapers, and shall include only such as are intelligible and written in English or French in plain language and without the use of cypher code, groups of figures or letters, or words of concealed meaning.

4. The respective Governments of the Contracting Colonies shall in respect of telegrams forming part of the Australasian traffic be entitled to be paid out of the rates charged for transmitting the same the terminal charges specified in the said Schedule hereto.

5. If on the 1st day of January 1902 or on the 1st day of January in any subsequent year the receipts of the Extension Company and the Cis-Indian Administrations from the Austra- lasian traffic after deducting out payments charged by other Governments and Administrations sum of £330,000 shall have averaged during the three previous consecutive calendar years per annum or any sum in excess of that amount, the rates for the transmission of the Austra- lasian traffic (except Victoria, New Zealand, Queensland, and New Caledonia traffic) to and from Europe via Singapore and Suez or Teheran or via the Cape Colony and St. Helena shall be reduced to three shillings per word for ordinary telegrams, two shillings per word for Government telegrams and one shilling per word for Press telegrams, which reduced rates and their apportionment are specified in the Schedule hereto (Table C); and if at the expiration of any subsequent calendar year after such further reduction has been made, the said average receipts of the three previous consecutive calendar years shall have amounted to or shall have exceeded the said sum of £330,000, the rates for such traffic (except as aforesaid) by the said routes shall be reduced to two shillings and sixpence per word for ordinary telegrams, two shillings per word for Government telegrams and one shilling per word for Press telegrams, which reduced rates and their apportionment are specified in the Schedule hereto (Table D) and such rates respectively shall be considered in the respective cases in this Clause defined to be the maximum rates for the time being for the purpose of this Agreement.

6. Nothing herein or in the said Schedule contained shall prevent the Extension Company from varying the apportionment of any rate, provided the total rate is not increased and the proportion payable to any of the contracting Colonies is not reduced beyond the limits contained in the said Schedule.

7. If and whenever the said rates are reduced in pursuance of Clause 5, the terminal charges payable to the respective Governments of the Contracting Colonies in respect of tele- grams transmitted at such reduced rates shall be reduced according to the scale set forth in the said Schedule hereto.

8. After any reduction in the rates for Australasian traffic and in the terminals shall have been made under Clauses 5 and 7 hereof, or by the Extension Company or Cis-Indian Administrations of their own motion, the said rates and terminals shall not again be raised except as provided in Clause 9.

9. From and after the opening for traffic of the Pacific or any other competing Cable nothing in this Agreement contained shall prejudice the rights of the Extension Company and the Cis-Indian Administrations to at any time reduce the rates for the Australasian traffic, including Government and Press telegrams, and at pleasure to raise them, subject to the maximum limits in each case fixed by this Agreement.

10. In the event of the full rates for the Australasian traffic being at any time reduced by the Extension Company and the Cis-Indian Administrations the charge per word for Govern- ment telegrams shall not exceed the full outpayments for the time being charged by Govern- ments and Administrations and three-fourths of the rate retained by the Extension Company and the Cis-Indian Administrations for their own use and benefit.