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The Chancellor of the Exchequer: That is, as I understand it, an absolute decision of the committee, the reduction to be brought into operation as soon as they are able to carry it into effect, and they mention not later than October 1 of this year. (Cheers.) Proceeding, the Chancellor of the Exchequer said that he wished to say a few words concerning the working of the Pacific cable, especially with regard to the action of the Australian Com- monwealth, or of certain of the Australian Governments. There had been communications proceeding with regard to that matter between the Colonial Office and the Colonial Governments for, he thought, a very considerable time past, and a conference was now shortly to meet and discuss the matter. It would not be merely premature, but almost impertinent, on his part to enter on one side or the other into any examination of the questions which must be discussed and considered at that conference. They were matters of very considerable delicacy. There was a good deal to be said on both sides, but he did not think that that was the place, and he was certainly not the person who ought to state the arguments either for or against. He would, of course, communicate to the other Government Departments concerned a report of what they had said. He did not think himself that it was desirable to appoint a fresh committee at the present time, or that could usefully go over again

the ground covered with so much care and ability by Lord Balfour's com- mittee. From time to time, as opportunity occurred, the Government would be glad to do their best to secure improved communications and reduced rates between the different portions of the British Empire. But he did not think the necessity was proven at.the present time for the Government itself to embark in further great cable enterprises, and he confessed that he thought that any indication that the Government intended to go to the market to raise large sums of money for capital expenditure in that room at the present time would be received with great dislike by the money markets and the commer- cial classes generally; it would adversely affect our credit, and it would tend to check the return of commercial and financial prosperity, of which we thought we had seen some signs, and which it must be the first desire of all of us to encourage. He had been asked by the representative of the Post Office to say that another reduction, which he hoped would be brought into operation shortly, would be made-namely, the rate to Egypt would be reduced to 18. a word.

Sir Edward Sassoon asked the Chancellor whether the further reduction in the Indian rate from 28. would be continued automatically if the traffic could respond and leave no loss.

The Chancellor of the Exchequer: That is so.

Mr. Charles McArthur, M.P., having thanked the right hon. gentleman, the deputation withdrew.

6711.

No. 4.

The GOVERNOR-GENERAL OF CANADA to the SECRETARY OF STATE.

(Received February 24, 1906.)

Government House, Ottawa, Canada,

February 12, 1906.

(No. 57.) MY LORD,

I HAVE the honour to forward to you, at the request of Sir Wilfrid Laurier, enclosed letter from Sir Sandford Fleming, and to express his hope that you may see fit to pass it on to the Pacific Cable Board for their examination and report.

I have, &c.,

GREY.

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Enclosure in No. 4.

Ottawa, January 26, 1906.

MY LORD,

I HAVE the honour to submit the following papers." I venture to think they have a bearing on a subject of much interest to the people of the Mother Country and all the Colonies.

Having, through force of circumstances, come into possession of the views of many of the foremost men in Canada on a proposal respecting the organisation of the Empire, duty impels me to make these views known. Equally impressed by a sense of public duty, I have the honour to submit explanations on a subject which at the present moment occupies the thoughts of many persons throughout the King's dominions. These explanations will be found to relate to the gradual evolution of the Empire.

A hundred and thirty years ago the great and gifted Irishman, Edmund Burke, had visions of a mighty Empire; fifty years ago its organisation was the dream of the great Canadian, Joseph Howe; since then it has been the dream of other great men of all races and creeds in various latitudes, and in yearly increasing numbers.

For a generation back Imperial Federation Leagues, British Empire Leagues, and other associations have been formed with the avowed purpose of converting the dream into a reality. The goal has not been reached; but if the desired results have not followed, these several agencies have done much to awaken the spirit of union which now to so large an extent prevails.

The First Necessity.

The organisation of the Empire was brought specially to the attention of the Canadian people in October last by three envoys from England, Sir Frederick Pollock, Mr. Geoffrey Drage, and Mr. Pitt Kennedy. These gentlemen travelled throughout the Dominion, and addressed public meetings in several cities. It will be my purpose to refer to some of the chief proposals they submitted, and furnish the views of many eminent Canadians respecting them. From such evidence I think it will be apparent that the time is not yet ripe for the adoption of the proposals, at least in the order in which they were presented. Moreover, the evidence will show that no scheme of organisation is likely to be readily and generally acceptable unless and until some effective means be taken by and through which the people of every portion of the Empire are made better acquainted than at present with each other, and with all matters concerning their mutual well-being.

This points directly to the first step which the circumstances of the case appear to demand, the establishment of an adequate service for disseminating useful knowledge throughout the Empire for the mutual advantage of all. am satisfied that such a service, established under Imperial authority, and properly organised to accomplish the desired ends, would prove a powerful and effective educating influence. I believe there is nothing which would more speedily tend to bring about the harmonious union of all British comununities.

At present we have, it is true, the Imperial postal service; but, owing to distance and the time taken up in transit, this service is entirely inadequate. No satisfactory exchange of thought, or general discussion, can be carried on when it requires two or three months to get a reply to any kind of postal communication.

It may be said that delegates could be sent from one country to another to make speeches and deliver lectures; but the audiences in all such cases would be limited. The circumstances require, not simply that lectures or post prandial speeches be heard by a few on special occasions, but that the millious be reached frequently. This, I am satisfied, is the first problem to be solved, unless the consolidation of the Empire is to be indefinitely postponed. That it can be solved, and most effectively, I have no doubt whatever, by utilising the electric telegraph, and by combining its use with the daily and other journals in each British community. Through the co-operation of cables and the Press we would come into possession of the very best medium for conveying selected intelligence to the millions who

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