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PUBLIC RECORD OFFICE

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C.O. 885

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PUBLIC RECORD OFFICE, LONDON

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they will hold firmly within their grasp the most important telegraph lines of the Empire. A condition of things pregnant with danger; for it must not be forgotten that the property, the privileges and the powers of companies are transferable by purchase. We are not unfamiliar with such transfers, and we may ask ourselves the question, "What would prevent a syndicate of German, French, or United States stock What operators buying up the controliing power of the Eastern group of cables? would prevent the controlling power of the whole telegraph system of the southern What would prevent the cables of the Empire hemisphere passing into foreign hands? being alienated at the most critical moment?

12. The mere possibility of such a thing can scarcely be regardel with equanimity. The question raised is of vital importance to British people every whero. Obviously the obligation to safeguard the public interest in the matter of telegraph communications is thrown on the Government of the British family of nations, and at this juncture on no single Government more than on that of the great Commonwealth of Australia.

13. In November 1900, an Inter-Departmental Committee was appointed by the Home Government to inquire into the subject of telegraphic connections, Lord Balfour of Burleigh, being chairman. The Committee reported a few weeks ago and the points specially referred to in the report which have a bearing on the matter now being considered are as follows :—

(1.) The Committee are strongly opposed to the general purchase of cables by the

State.

(2.) The Committee are of opinion that every important colony or naval base should be connected with the United Kingdom by one cable touching on British territory, or on the territory of some friendly neutral.

(3.) A variety of alternative routes should be provided wherever it is essential to

secure telegraphic communication in time of war.

(4.) The normal policy should be to encourage free trade in cables. Exceptions should only be made to this rule on the ground of national, not of private, interests.

14. These are the principal conclusions reached by the Committee, and it will be observed that not one of them conflicts with the proposal formulated in October 1898. With respect to the first point in the above list, the general purchase of cables by the State formed no part of the proposal then submitted. The proposal was not to purchase old cables, but to supplement them by establishing a sufficient number of new lines touching only British territory to connect every important colony with the Mother Country. This part of the proposal is in complete harmony with the recommendation of the Committee, with this difference, their recommendation is indefinite with respect to the number of cables, and may be understood to mean many cables, that is to say, a separate and distinct cable from each colony to the United Kingdom. The proposal of 1898 is precise and clear. Its main feature is to have the greater Colonial possessions connected with each other and the Mother Country by one continuous chain of cables constituting an all-British telegraph around the globe. Importance is attached to this proposal in the interest of economy, as it would secure every advantage with the least outlay. Moreover, the continuity of the cables, so as to form an electric ring around the earth, would in practice be the best security against interruption in the transmis sion of messages; as when a break would occur at any point there would remain an alternative route in the opposite direction.

15. It is not necessary to dwell upon the enormous importance of having the globe girdled by an all-British State-owned telegraph, as its advantages are self-evident. When the proposal was made known in December 1898, the British and Colonial Press with extraordinary unanimity expressed generally the opinion that the advantages to result are incontrovertible; that nothing would tend more to quicken a sense of unity and solidarity throughout the Empire; that at all times it would place it in the power of the Governments to regulate and moderate the rates for the transmission of messages between all the countries served; that the immediate effect would be to facilitate inter- course and foster trade, not only between the Mother Country and the Colonies but between the Colonies themselves.

16. One essential point to be insisted on is, that the Imperial telegraph girdle must be absolutely State-controlled, in order that the main lines of communication of the Empire be placed beyond the possibility of interference by trusts and combines, that in to say, that they shall remain inviolably British.

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17. The expenditure involved would be considerable, but it is far outweighed by the incalculable benefit to result. The original estimate of expenditure required to establish such a telegraph girlle around the globe was from 5,000,000l. to 6,000,0001., but this included the Pacific Cable which will cost close on 2,000,000. The Pacific Cable will shortly be completed. To provide and lay the remaining cables not far short of 4,000,000, will be required.

18. The foregoing paragraphs relate in brief detail the causes which have led to the complications which have arisen in Australia, and point out the inevitable outcome of the designs of the cable companies if they are allowed to go unchecked. The gravity of the peril has been indicated, and it is of such a character as to demand decisive action on the part of the Governments concerned.

19. Although the complications referred to by Mr. Mulock in the Canadian House of Commons had their origin in Australia, the question raised is not limited to that country. The antagonists of an Imperial system of cables conspired to defeat it, they played what from their own standpoint might be regarded as a master-stroke. This action has, however, brought forward an Imperial question of vital importance, in which we are all concerned, and the issues at stake are such that it is in the last degree inexpedient to place it in the power of any man, or syndicate of men, to gain control of the nervour system of this great Oceanic Empire.

20. We have a common interest in a common object. We have a common interest

in seeing that a gigantic cable combination shall not be fastened on the British people to handicap commerce and retard general progress, and still more are we all interested in seeing that it shall not remain as a menance to the security of the Empire.

21. The problem presented is of the first importance, and the solution of it rests with the statesmen from the self-governing parts of the Empire, to be assembled at the Coronation Conference. It can undoubtedly be solved by following the same policy as that adopted in the establishment of the Pacific Cable, that is to say by a partnership arrangement in which all will unite for the common good.

22. Our common object is the freest intercourse, and this object can best be attained by linking together all the great outposts of the Empire precisely as Canada, New Zealand and Australia are now being brought into close relationship by means of the Pacific Cable. The Imperial telegraph system will embrace in its circuit round Of these the Pacific will have its opposite shore the globe three great oceans.

Then will remain the Indian and Atlantic telegraphically united in a few months. Oceans to be traversed by nationalized cables. This, the crowning achievement, will cost n round figures 4.000,000l. an insignificant expenditure of capital, in view of the immensely important results to be attained. It would do more for the Empire as a while than twenty times the amount spent in any other way whatever. It would set at rest the difficulty which has been caused in Australia. It would place the telegraph service of the Empire on a secure and satisfactory basis, and render alienation of the leading cables impossible. It would be a fresh tie between all the great Colonies and the Mother Land of great practical utility; it would minimize transmission charges and prodigiously increase the volume of telegraphic intercourse; it would benefit trade, vitalise the spirit of patriotism and strengthen the sentiments which constitute the most enduring foundation on which the Empire of the future can be built up. The circumstances are such, and the benefits so many and so great, that whatever the cost, the Pan-Britannic telegraph service should as speedily as possible be carried to completion.

23. The establishment of such a service would affect the existing companies. The national telegraph encircling the globe would become the main or trunk line of com. munication between the great self-governing portions of the Empire. The existing private cables would to a large extent assume the position of branches to the trunk line, and as such would find employment in general and especially in international traffic. The charges for transmission by the trunk line would be lowered to a minimum so as merely to cover cost of operating, interest and maintenance, and as a consequence the business would be immensely increased. The companies would gain by the increase and likewise by the reduced charges on the main line, as they would thus be supplied with much profitable business for general dissemination.

24. The private cables were for the most part established with commendable enterprise many years ago. They received generous Government assistance. They have done useful pioneer work, and this work has already yielded to the enterprising investors rich returns. The time has come, however, when circumstances demand a 4 F 3

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