THE CABLE SCHEMES.

Auckland Star, Volume XXXI, Issue 105, 4 May 1900, Page 5

THE CABLE SCHEMES.

MELUOUftXJO. Mtiv I!

The confidence between Mr Crick and Mr Watt in regard to the Cape cable resulted in an agreement be-

1 ween the two colonies, which Mr Crick, in an interview, declared to be

satisfactory, and there was little to fear but that Parliament would ratify it. The attitude of the Eastern Ex-

i tension Company towards the decijsi on is not known, but Mr Warren, j who is in communication with the Postmaster-Oeueral by wire from Adelaide throughout the conference, | has cabled the result to his London ' oiiice.

The Postmasters-*Jeneral have decided thai the agreement with the Eastern Extension Company shoiild cover messages to and from Australia. Koine doubt existed on this point as the agreement was previously worded. If any reduction in rates is made in accordance with the agreement, based on Hit* volume of traffic, the rates shall not be raised agafu. Tf the company is anxioim to compete with a rival cable, a,nd still further reduce the rates, or goes below those stipulated in the agreement, it shall not bo able to raise them again to a high or poinl than that fixed under the agreement. The rates 1 hus stipulated in the. agreement become the maximum. Tn regard to the clause as to terminal facilities, it is agreed that the company shall be able to open local offices directly the Pacific or any other cable owned or partly owned by the Austrajasian Governments is opened, with the concession, however, that no other cable shall secure rights before the Eastern Company. It is decided that the telegraphic instruments and other apparatus shall be admitted fre,e of duty. The demands for income tax and municipal taxation exemp- . tion is not granted. The arbitration clause was lengthily discussed, amVit was agreed to remedy the defect in the present agreement by inserting provisions for its termination under certain arbitration procedure, to the effect that in the event of the agreement not being kept by the company, the contracting colonies may jointly give notice of termination, and it the, c'onTpany be not satisfied that sufficient reason for termination is made out, the matter shall be sent to arbitration. A purchase clause will be inserted in the contract, the purchase valuation being left to the arbitrator. It was decided that no agree- ;' ment shall be signed at once, in view |of the early meeting of the Parlia- ; ments of the two colonies, when the matter will be placed before them for approval. Both Portmasters-General | assert that the agreement affords ' reasonable protection to the Pacific cable.