CO885-8 — Page 236

469

PUBLIC RECORD OFFICE

Reference :-

C.O. 885

8

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

2

French private interests in the group, and has largely manufactured French sentiment in regard to it-is bankrupt; and it is possible that the rumour to which the Commonwealth Govern- ment refer means the willingness of that Company to part with its claims and interests for that sum-not that France is willing to part with its political rights in the group, though the withdrawal of the Company would weaken very much the position of the Republic and facilitate the surrender of its rights.

A partition, from whatever basis we start- the relative extent of private interests or adminis- trative convenience-presents hopeless difficul- ties. Our only object is to gratify Australian and New Zealand sentiment, and if we fail to do that we had better leave the question alone. British settlement in the group is being sedulously fostered by Australia, while the financial weakness of the French Company hampers the advance of the French, and it is probable that in a short time the extent of British private interests and the number of British settlers will considerably exceed those of France; and an arrangement for a settlement of land titles would hasten this result, and strengthen the position of Australia in objecting to anything short of complete cession of French rights.

M. Delcassé's statement that France is interested in the Islands on account of New No Caledonia is not entitled to much weight. doubt the New Hebrides Company has large interests alas in New Caledonia also; but the Islands are of no importance to New Caledonia either strategically or commercially. If they were of strategic importance to New Caledonia, France would scarcely propose a partition, as our possession of part of the group would be as much of a menace to New Caledonia as our possession of the whole. Commercially, the New Hebrides as well as New Caledonia are dependencies of Australia, and New Caledonia can never aspire to being a focus of French_influence and com- merce in the Pacific in the way that Australia. and New Zealand are of British înfinence.

If we are to treat the New Hebrides question at all to do any good it must be on the basis of total surrender of any political rights of France in the group, with an agreement to have all questions of land title referred to a Mixed Com-

3

mission, unless-which is extremely improbable -Australia or New Zealand would find the money to buy out the French Company.

NEWFOUNDLAND.

The object specially aimed at by the French in regard to the Fishery question is to obtain the right to free purchase of bait in the bays on the south coast of Newfoundland, which lie outside

the limits of the Treaty Shore.

This concession the Colonial Government have definitely and finally refused to consider unless France will agree to reduce the export fishery bounty to a figure regarded by the Colony as reasonable, or in the alternative will restrict the bounty to the metropolitan fishery excluding from participation in it, the fishery conducted from St. Pierre and Miquelon.

If France persists in the attitude hitherto con- sistently maintained of refusing to discuss the question of bounties, we must aim at a modified arrangement which will get rid of the main source of existing trouble with the Colony, the obstacle presented by the French rights of drying their fish on the shore, to the development and utilization of the country and the coast.

In the present condition of the fishery, and in any conceivable circumstances in the future, this right is of no practical value to the French, while it is no doubt a serious drawback to the Colony. As it is hopeless to expect a complete surrender of French rights, except by an arrange- ment which includes the right of procuring bait

on the south coast, we should aim at an arrange- ment confined to the Treaty Coast. The French right to fish for any kind of fish, whether bait fish or others, or to purchase bait on the Treaty Coast, might be continued.--the fishery upon that coast, on the greater part of which the Americans have also a Treaty right to participate, being practically internationalized under some such arrangement as is provided by the North Sea Fisheries Convention; but the French should give up their right of using the shore for the purpose of drying fish, or at least agree to its

• We have recently pointed out to them that, in fact, they can only use it at all by virtue of our generosity in allowing them to exceed the conditions prescribed by the Treaties.