CO885-5 — Page 265

PUBLIC RECORD OFFICE

Reference -

TLCO 885 /

PUBLIC RECORD OFFICE, LONDON,

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

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benefit from the undertaking to a like extent. The illustration as presented will explain the principle on which a subsidy may be based.

Among the British possessions in the southern hemisphere directly interested in the work are Fiji, Tasmania, New Zealand. Western Australia, Queensland. New South Wales, South Australia, and Victoria. I venture to think that their co-operation with Canada in the manner set forth would, without difficulty and with no great delay, secure to them and to the whole British colonial system all the political and commercial advantages to result from the projected line of communication.

As the contemplated work is of special importance to the mother country and all her Colonies, trust I may be allowed to entertain the hope that you will be pleased to bring the subject under the notice of the respective Governments.

SIR,

The Right Hon. Sir John A. Macdonald.

III.

I have, &c.,

SANDFORD FLEMING.

TELEGRAPH between AUSTRALASIA, CANADA, and GREAT BRITAIN.

London, July 19, 1886.

THE undersigned, who were present at the meeting of the Agents-General on the 12th instant, having been requested by you to ascertain the amount of subsidy which would be necessary to enable a company to connect England telegraphically with Australia through Canada and the Pacific Ocean, have the honour to state :

We have considered the whole question and are of opinion that a substantial company can be formed to establish an efficient telegraph connection on the route proposed for a total annual subsidy of 100,000l. for 25 years.

The subsidy may be apportioned as follows, i.e. :—

1. Great Britain, on behalf of the United King-

dom, India, and the Crown Colonies

2. Canada

3. Queensland

4. New South Wales

5. Victoria

£

50,000

10,000

10,000

10,000

10,000

6. New Zealand, Tasmania, and Western Australia 10,000

£100,000

Or should the Imperial Government, by an arrangement with the Colonial Govern- ments, itself guarantee the whole amount, the total subsidy may be considerably reduced, as the Imperial guarantee would enable the Company to find capital at a lower rate of interest. With such guarantee a total subsidy of 90,000l. for 25 years would suffice, and thus reduce the annual contributions.

The subsidy mentioned is calculated to pay interest on borrowed capital, and provide a sinking fund for its repayment in 25 years.

As the company would transmit all the messages of the various contributing Governments free, and the rates chargeable to the public for "through" messages would not be more than one half the present regular tariff charges, Great Britain and the Colonies would save a much greater sum than the amount of subsidies above proposed. If the several Governments agree to pay over to the company a per-centage of the gross savings which would thus be effected by each country, the company could still further reduce the charges to the public.

The Honourable Sir Charles Tupper, G.C.M.G., C.B.,

High Commissioner for Canada, London.

We have, &c.,

DONALD A. SMITH. RANDOLPH C. WANT. ANDREW ROBERTSON. MATTHEW GRAY. SANDFORD FLeming.

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Appendix II. to No. 34.

CABLE COMMUNICATION BETWEEN AUSTRALIA AND GREAT BRITAIN.

REPORT of SUPERINTENDENT, ELECTRIC TELEGRAPHS, on REDUCTION of RATES for CABLEGRAMS and DUPLICATION of SUBMARINE CABLES.

Ordered by the Legislative Assembly to be printed, April 21, 1886.

I HAVE Carefully considered the proposals made by the Eastern and Eastern Extension Companies for a roduction in cable rates between Great Britain and the Australian Colonies, and have the honour to submit the following report :-

At the Telegraph Conference held at Berlin in August and September 1885, it was decided, subject to the removal of some slight difficulties, such as a reduction of the transit rates through India, to make a reduction of 2s. per word on cable messages for the public, and 3s. 9d. per word reduction to the Press, also a proportionate rate for the Government, which would have made the rates, from the 1st July next, Ss. 8. per word to the public and 28. Sd. per word for the Press, which would have been satisfactory to all concerned; but, in consequence of India refusing to reduce from 77. to 5d. per word, which even then would be double her own local rate for the conveyance of messages a distance of 650 miles, this was not carried out; and the Eastern Extension Company have from time to time made new proposals to the Colonies, which, have been more or less impracticable.

The last proposition appears to me to be the only feasible one they have inade—-i,.. if the payment of the present subsidy of 32,4007. per annum (New South Wales proportion being 12,6177.) be extended for a period of 6 years, they will reduce the rates for public messages to 8s. per word to Adelaide-this would be about 25 per cent. on the present tariff-to secure which I think the contributing Colonies. Victoria, New South Wales, South Australia, and Western Australia, should accept.

There are several proposals for duplicate cables, but they are vague and unsatisfac- tory. Sir Julius Vogel suggests a cable from Queensland to England, by what route he does not say; 'another from Perth to Ceylon, and another via Mauritius. Natal, and the Cape. Every one of these lines would run into the Eastern Company's systems : for instance, if a line were taken from Cape York or Normanton to Java, Singapore, or Manilla, the whole of the business would be conducted from there by the Eastern and Eastern Extension Companies; and even if it were extended to Hongkong and Shanghai, the messages would be carried from there by the Great Northern Company through Russia, which has a joint-purse agreement with the Eastern Company, so the public would fare no better.

A cable from Perth to Ceylon, 3.500 miles. would be a very long lead, and would require an expensive cable, with enormous copper conductivity, to work at anything like speed, and no object would be gained, as the line would only work into the Eastern or Indo-European cables via the Persian Gulf, which also work on the joint purse system with the Great Northern; so again the Australian traffic would be entirely at the mercy of the existing Companies.

A line from Western Australia to Mauritius and the Cape is almost too ridiculous to be spoken of, and, even if carried out, the business would share the same fate, as the Eastern Company have the lines on the east coast of Africa, from the Cape to Natal, Mozambique, Zanzibar, and Aden, also the new line on the west coast, which, I believe, is to be extended to join the Brazilian cables either at Pernambuco or St. Vincent, so that there is no prospect for an opposition duplication to the existing cables by either of these routes, unless an entirely through course to England could be selected; even then Egypt could not grant a land line from the Red Sea to the Mediterranean, as she receives a subsidy of 7,000l. per annum from the Cable Company for exclusive right of transit through that territory.

The only possible way out of the difficulty would be to construct a series of cables from New Zealand to San Francisco or Vancouver's Island. This would necessarily be very expensive and very risky, as the whole of the sections would terminate on coral reefs, which are most destructive to cables. The first section would be from New Zealand to Levuka, Fiji, a distance of 1,239 knots, with an unsurveyed depth of water; the next section would be to Apia, Samoa, 680 knots, also coral formation; thence to S

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