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PUBLIC RECORD OFFICE

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PUBLIC RECORD OFFICE, LONDON

PACIFIC CABLE.

POSTAL COMMUNICATION.

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Sir Hugh Muir Nelson.] So far as Queensland is concerned, we have offered to do that all along.

You cannot

Sir George Turner.] It is rather putting the other Colonies in a false position, that of being unfriendly. All we ask is for a little further delay.

Mr. Reid.] As to being put in a false position this is perfect freedom from every liability. It is a position I should like to be in. object to the line being made. It is an additional convenience to your people. You get this competition, and you pay nothing for it unless you like.

Sir George Turner.] In our Colony we are not in the habit of taking a benefit without paying a portion of the cost.

Mr. Reid.] Indeed, I was not aware of that.

Sir E. N. C. Braddon.] I understood from the Colonial Office that it was impossible to lay this cable.

The Secretary of State.] That opinion has been entirely altered now.

Sir John Forrest.] Would the Government lend money to construct a line to compete with an existing organisation?

Mr. Reid.] I think if the Premiers here present of New South Wales, New Zealand, Queensland, and Canada, were to indicate they were prepared to take their share of the cost of the construction of this cable, I think the Imperial Government would then be in a better position to consider the matter, because there are two-thirds already; Canada guarantees one-third.

Sir Wilfred Laurier.] We have not got so far as that.

Mr. Reid.] Then we have got as far as you

have.

Sir Wilfrid Laurier.] We have not taken up the matter practically yet. We are disposed to watch it, but I am not authorised to say anything definite. Sir George Turner.] I think you are practically in the same position as I

You want to know what it amounts to.

am.

Sir Wilfred Laurier.] Well, I would say further, we are ready to favour it. That is all I can say. The subject is somewhat hazy yet.

Mr. Reid.] It is no any

definite conclusion.

use trying under these circumstances to come to

POSTAL COMMUNICATION.

Sir Wilfred Laurier.] The next thing is postal communication.

The Secretary of State.} I do not know whether the Conference would be prepared to say anything upon the subject of postal communication.

Mr. Reid.] It has been settled now for a term of years; new contracts which have not yet begun.

Sir Wilfrid Laurier.] That is a serious question. I do not know that; as far as Canada is concerned, we would be ready to concede that; we have I do not think that that is one of the very heavy duties in the meantime. subjects that we can take up practically.

Mr Seddon.] What is that?

The

Sir Wilfred Laurier.] The improvement of the postal service. suggestion was to make the postal service in all the empire a penny postage. We had some discussion on that subject, and we saw that there were very serious difficulties in the way.

Mr. Seddon.] At the Postal Conference the question of reducing the postage from 24d. to 2d. was considered, and at the time there was a rather strong feeling, after an announcement had been made by the Chancellor of the Exchequer in regard to sending a representative to the conference, practically So far, I may say, with a decision already arrived at in reference to it.

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that if you make intercolonial postage a penny at this end in my opinion you would force the Colonies to reduce it at their end. There is no doubt of that. Well, our inland postage in the Colonies is 2d., and if we reduce the postage for the mails outside the Colonies we would have to reduce it for the inland postage, and the effect on our finance would be very serious indeed. Under those circumstances we should be very careful before we agree to the suggested penny postage.

Sir E. N. C. Braddon.] I do not see any reason why the home autho rities should not reduce their postage to 1d., but in the Colonies of Australia not one at the present time would reduce its postage to ld., and there is no doubt that the reduction from 24d. to even 2d. would have this effect, that very considerable pressure would be brought to bear to reduce the inland postage which is 2d. now. It would be ridiculous to charge 2d. for inland postage, and 1d. or even 2d. on letters sent from the Colonies to England.

Mr. Reid.] And yet that has been done without a single word, without any kind of agitation. We have gone on in New South Wales for I do not know how long, for some years, without complaint.

Sir George Turner.] We charged 1d. all over the Colony, and in our hard times we had to make the people pay, to pay our liabilities, 2d. instead of id., but before long we will go back again to the ld. all over the Colony.

Mr. Seddon.] At the present time the two mail services which stop at New South Wales are subsidised; one, I think the P. and O., receives 80,000/., another receives 50,000. The Imperial authorities have recently entered into agreements to subsidise, I believe, a fast service to Canada, and New Zealand receives no benefit whatever from that. Well, I say that we have had practically a service with San Francisco; we should be asked now to come into the Vancouver service in connection with the Canadian service; I do not know whether attention has been called to this, that at the other end there is practically only a 12-knot service. Now, I think, whilst you shorten the time at this end, there is seven years of the other contract with the 12-knot service still remaining, and I would have thought if they could have done anything in that matter that some step might be taken if possible to extend there the 15-knot service.

The Secretary of State.] Between Canada and Australia.

Mr. Seddon.] Between Canada and Australia, yes. The present service is

a 12-knot service, and it has seven years to run.

Sir Hugh Muir Nelson.] It does not call at New Zealand.

Mr. Seddon.] It does not call at New Zealand; we are left out again.

Mr. Reid.] You do not contribute.

Mr. Seddon.] We do not contribute.

Mr. Reid.] We give £10,000 a year.

Mr. Seddon.] The San Francisco service which we contribute to, and which, as it now stands, will be a shorter service to us, that contract is different. We have no contract with respect to Vancouver; it is entirely new-a new mail

pro- posal; that is why I mention it here to see whether Great Britain will help us. From Australia, again, we have to wait for some of the other boats, and we receive no benefit at all from Imperial authorities in respect of the mail service.

The Secretary of State.] That is really a question which I should like to have put in detail. I could not give any answer to it until I saw the whole proposal.

Sir Gordon Sprigg.] Mr. Chamberlain, I have to say for the Cape Colony we have penny postage throughout it. In Natal and throughout the Orange Free State, I am entirely in favour of an ocean penny postage, and I think I

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POSTAL COMMUNICATION,