PACIFIC CABLE CONFERENCE.

New Zealand Mail, Issue 1751, 27 September 1905, Page 2

PACIFIC CABLE CONFERENCE.

THE RIVAL COMPANY'S AGREEMENT. PROPOSED AMENDMENT. (From Our Special Correspondent.) LONDON, August 11. The Pacific Cable Conference which hag been meeting in London has brought its labours to a close. Its sessions were held in private, but the report of the conference was issued yesterday as a Parliamentary paper. The chief point of controversy was in reference to the special facilities granted to the Eastern Extension Telegraph Company in Sydney and Melbourne under the New South Wales agreement of 1901 and the Commonwealth agreement of 1903; and the report of the conference expresses the earnest hope .that the Commonwealth Parliament will not ratify this agreement unless it is so amended as to terminate by October 31, 1913. The repn is signed by the Colonial Secretary (Mr Alfred Lyttelton) on behalf of the Mother Country, Lord Jersey (for Australia), Sir William Mulock (for Canada), and Sir Sandford Fleming (for New Zealand). The signatories state: In approaching the consideration of th<~ questions referred to us in connection with the working-of the Pacific cable, we have endeavoured to bear in mind that this enterprise was initiated not merely as a commercial undertaking, but also f and largely for the purpose of promoting Imperial unity. We have deemed it of special importance that this, the first joint commeeial enterprise promoted by the various self-governing States of the Empire, should be carried through with success, and have, therefore, aimed at removing all sources of friction between the partner governments, and have sought to accommodate such difficulties as have arisen in the spirit of reasonable compromise. We find from statistics furnished by the Eastern Extension Telegraph Company and the Pacific Cable Board that in the case of New Zealand and all the States of Australia, except New South Wales and Victoria, the Pacific cable obtained approximately in the years 1903 and 1904 the share of the totai traffic between Australasia and the United Kingdom which was anticipated at the time when it was decided to lay the cable; but that in the case of the two colonies of New South Wales and Victoria the Pacific cable has obtained a much smaller proportion of traffic than was anticipated; and we consider that this result must be attributed mainly, if not entirely, to the fact that the telegraph company has been granted special wires and has been allowed to open offices in Sydney and Melbourne under the New South Wales agreement of 16th January, 1901, and the Commonwealth agreement of Bth June, 1903. We do not think that any useful purpose would be served at the present time by discussing the action of the New South Wales Government, in entering into the above-men-tioned agreement, but it is sufficient to observe that when the Commonwealth Government took over the administration of the postal and telegraph departments of the various States of Australia they found this agreement in existence, and considered themselves bound to recognise and carry it out, unless it could be varied by. mutual arrangement be-

ween tli© Government and the company. The Commonwealth Government represents that their agreement is more favourable to the interests of the Pacific cable than the New South Wales agreement, inasmuch as the latter was one of indefinite duration, while the former can be terminated after a certain date by giving two years'’ notice in writing; but we consider it of the utmost importance that the date of the termination of the agreement should be settled now, and not be left for decision in 1913. Sir Edmund Barton claimed, in his letter to Mr Seddon of Ist June, 1903, that "by reducing the term of the agreement to a reasonable period, the Commonwealth has obtained for the Pacific cable a very great advantage, which cannot fail to be of immense and increasing value,'’" but we feel that this advantage is not definitely secured So long as any doubt remains whether the agreement will or will not be actually terminated after it lias been in operation for ten years. We therefore earnestly trust that the Commonwealth Parliament will not ratify the agreement unless clause 25 is amended so as to read, “This agreement shall remain in force until the 31st day of October, 1913, and no longer."" The partners in the Pacific cable will then be restored to the position in which they stood prior to the making of the New South Wales agreement, and will then be free to determine their policy unhampered by any agreements arrived at by any of the Governments without previous consultation with the other partners. We are advised that the recital in the preamble of the Commonwealth agreement, that it is desirable to substitute one agreement for certain other agreements, including the New South Wales agreement and the similar agreement with South Australia, Western Australia, and Tasmania, cannot safely be relied upon to prevent the revival of those agreements on the termination of the Commonwealth agreement. We, therefore, think that an express provision, excluding such revival, should have been inserted in the Commonwealth agreement, and we trust that such a provision will be inserted before the agreement is ratified. We understand, from statements made by Sir Edmund Barton in the Hoiise of Representatives on the occasion of the ratification by that House of the Commonwealth agreement, that the Commonwealth Government has undertaken to grant the Pacific cable equal facilities with the Eastern Extension Telegraph Company without any qualification. a*, soon as thev are required. We consider that the Pacific Cable Board should forthwith be given such facilities and that the Board should take steps to secure the largest possible amount of Australian traffic by all legitimate methods of business competition. This

would of course involve the Board in very considerable expense in connection with local offices and with advertising and canvassing, and we think it might be left to the discretion of the Pacific Cable Board to negotiate an amicable arrangement with tfie Eastern Extension Telegraph Company, provided that no arrangement be finally concluded without the approval of the Governments concerned, nor unless the Commonwealth agreement is amended in tfie manner above suggested. It lias been suggested that the Commonwealth Government should reduce their terminal rate to tlie level of the late toi urgent internal messages. The majority of us are of opinion that the rate of 5d per word is excessive, and we trust that the Government will see their way to' reduce it. It is noted that the Australian Government have undertaken to remit all Customs duties and other charges (as specified in clause 19 of the Commonwealth Agreement with the Eastern Extension Telegraph Company), which have been or shall be levied on the Pacific Cable Board, and we hope that the Dominion Government will adopt a similar course. In conclusion, they desire to recommend, with a view, not only to the prevention of any misunderstanding, but also t-o the maintenance of cordial and friendly relations between the Governments in respect of the Pacific cable, that should any question hereafter arise in connection with terminal rates, or Customs duties, or proposed concessions or privileges to any cable or telegraph company, or respecting any other matters likely to affect the interests of the Pacific cable, such question should be referred to the Pacific Cable Board and the various Governments concerned for consideration before any final action is taken upon it. The Pacific cable bein" the first enterprise of the kind undertaken by a number of British Governments in partnership, it need occasion no surprise, if, at the commencement of the enterprise, some questions should have arisen touching the obligations of the various partner Governments towards the common undertaking; but, inasmuch as they fully appreciate the far-reaching political consequences attendant on the success or failure of the Pacific cable, they feel assured that the fullest possible effect will be given to the foregoing recommendations and suggestions which are respectfully submitted for the consideration of his Majesty's Government and the Governments of Canada, Australia, and New Zealand.