CO885-5 — Page 262

PUBLIC RECORD OFFICE

Reference —

mimic.0.885

5 PUBLIC RECORD OFFICE, LONDON ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

98

charges on messages and derive profits from the greatly augmented business which will certainly follow.*

The terms and conditions which I have indicated would undoubtedly command the organisation of a substantial and energetic company to carry out this new and important undertaking in the most satisfactory manner.

Sir Charles Tupper, G.C.M.G., C.B., High Commissioner for Canada.

Enclosure.

I have, &c.,

SANDFORD FLEMING.

TELEGRAPH between AUSTRALIA, CANADA, and GREAT BRITAIN

MEMORANDUM by MR. SANDFORD FLEMING,

1. It is proposed that a company be formed for the purpose of establishing telegraphic communication between Australasia and Great Britain by a new and independent line. This new telegraph is projected to traverse lands and seas beyond the control of any lower likely to prove hostile to the British Empire.

2. It is proposed that a chain of electric cables be laid across the Pacific Ocean, to connect the Australian group of Colonies with Vancouver, the western terminus of the Canadian Pacific Railway. The cables to land at such intermediate islands as may be found suitable for mid-stations.

3. Arrangements have already been made with the Canadian Pacific Railway Company for the transmission of all through telegraph business between the Pacific and Atlantic Oceans on extremely favourable terms.

4. It is proposed to acquire complete control of one of the existing Atlantic cables landing on the shores of Canada, or to lay a new cable from Canada to Cheat Britain.

5. The whole line may be divided into three great sections, viz. :—

(A.) The Pacific Section.

This section will consist mainly of electric cables, the lengths of which after allowing for slack will approximately be as follows:—

(1.) Brisbane or Sydney to North Cape, connecting at the former with the Australian telegraph system. at the latter with the telegraph system of New Zealand

(2.) North Cape to one of the Fiji Islands

Knots.

1,300

1,240

(3.) Fiji to Fanning Island

2,270

(4.) Fanning Island to one of the Sandwich Islands

1,260

(5.) Sandwich Island to Barclay Sound or Port San Juan,

Vancouver Island

2,730

(6.) Barclay Sound, across Vancouver Island and the Strait of Georgia to Vancouver City, the terminus of the Canadian Pacific Railway

100

8,900

99

(C.) The Atlantic Section.

A new Atlantic cable from Gaspé rid the Straits of Belle Isle to

Ireland

Geographical miles

-

2,450

messages

6. These three great sections connected, and the business under one management, it will be possible to reduce permanently the charges on messages to the lowest practicable rates, and thus render the line of the greatest commercial utility. It is believed that the reduction in rates contemplated, and rendered possible by the satisfactory terms agreed upon with the Canadian Pacific Railway Company, will give a great impetus to telegraphy and promote the development of intercolonial intercourse and commerce.

7. The arrangements proposed, and the terms agreed upon, will admit of being sent from Australia to Great Britain, on the opening of the new line, at less than half-eventually, it is believed, at one-third-the charges at present exacted.

8. While the new line, established as set forth, will stimulate commercial activity between the countries to be connected, its political, naval, and military value will be very great indeed. It is well known to naval and military commanders that no reliance can be placed on the permanency of communications by way of the Mediterranean and the Red Sea, and it becomes obvious that the line through Canada may, during any emergency, assume incalculable importance. The cable across the Pacific will always be removed from the theatre of European complications. It will not only be a direct means of communication between the Australian Colonies and the mother country, but if an emergency arises to render overy wire through Europe and Egypt useless, it will still be possible to communicato with India; indeed, every British station between South Africa and Port Hamilton may continue in telegraphic connexion with London.

9. To secure advantages so great-and it is difficult to say whether in a commercial, political, naval, or military aspect the advantages would be greatest-Government aid and co-operation is necessary; but as there are 12 Governments interested in the undertaking, moderate assistance from each will suffice.

more or less 10. The following Governments are interested in the new line of telegraph :-

1. The Government of Great Britain.

Canada.

2.

3.

Ilawaii.

4.

>>

Fiji.

5.

11

6.

59

7.

95

8.

15

9.

19

10.

++

11. 12.

Geographical miles

(B.) The Canadian Section.

This section will extend along the Canadian Pacific Railway and the Inter-Colonial Railway to connect with an Atlantic cable. If it be found necessary to lay a new Atlantic cable, the land line will probably terminate at Gaspé in the province of Quebec. Distance from Vancouver to Gaspé, statute miles

3,450

• Since the date of this letter the Reports of the Associated Atlantic Cable Companies for the past half- year have been published. They generally favour this new policy. The low tariff introduced has resulted in a very much larger augmentation of traffic than was anticipated as a first result. "volume of traffic immediately upon the introduction of the sixpenny tariff has induces the Directors to consider "The unexpected increase in the "the expediency of adopting permanently a system of low rates,

It is obviously their interest to

" encourage a very large traffic at low rates."--Report A. A. Tel. Company.

"

New Zealand.

New South Wales. Queensland.

Victoria.

South Australia.

Western Australia. Tasmania. India.

Of these Hawaii has offered 820,000 a year (say 4,0001.) for 15 years to be connected telegraphically with San Francisco, and it may be assumed that that subsidy will be available to the proposed company. The principal assistance, however, will require to be furnished by Great Britain and her Colonies.

11. It is proposed that Government aid should be directed to two main objects, viz.:-(1.) To secure the establishment of the cables across the Pacific Ocean; (2.) to provide for their permanent efficiency.

The first main object-the establishment of the cables across the Pacific-can be effected if the Government assistance takes the form of an annual subsidy sufficient in amount to pay a low rate of interest and provide for amortization on a large portion of the capital required for this section of the undertaking. The remaining capital may be share capital, and will have to depend for dividends on earnings.

12. The perpetual efficiency of the cables can be maintained in another way. It has been customary to make provision for this purpose out of earnings, but this course necessarily has a tendency to keep rates for the transmission of messages high. The policy recommended is to reduce traffic rates to a minimum, and, in order to do so, carnings should be charged with as little as possible beyond working expenses. therefore suggested that the renewal and duplication of the cables may be effected It is by a special provision. In the memorandum attached hereto (6th April 1886), it is clearly shown that the establishment of this new line in the manner set forth will R 2