THE PACIFIC AND CAPE CABLES.

Otago Witness, Issue 2396, 1 February 1900, Page 17

THE PACIFIC AND CAPE CABLES.

MELBOURNE, January 26.

Replying" to a Chamber of Commerce deputation, who protested against the granting of certain concession.? for the Cape cable* a^ked by the Eastern Extension Company, and supporting a strict adherence to the Pacific scheme, the Post-master-general said that the Government" were anxious to" secure "concerted action'" on the part of tile" colonies," and to' keep to'| the partnership -already* "entered "in to in j regard to the Pacific cable. At the same-] time, the Government desired to encourage. i the construction of both lines, with a view ! to giving the public the benefit of a fair j and healthy competition. j

January 29

The Argus says from every standpoint ■ the Pacific caole is far and away inferior to the Cape as an all-British line. It would be at the mercy of the United , States, which could strike it by land and . sea. However regrettable the prospect of > a rupture with the United States might be, | that event is on the cards. The Cape line follows a route under British guns everywhere, and can be guarded with the least

cost and the utmost certainty. Then, again, it will put us in touch with South Africa, one of the growing markets of the world, where Australia may hope to make money. Canada, on the other hand, is not a; consumer of our goods, and she is pitted against us in the British markets. Yet we refuse to hold communication with our customer, though it will cost us nothing, and yet the colonies are prepared to spend millions upon a second-rate line in order to merely link us with a rival. Absurdity could scarcely go further.

SYDNEY, January 25.

Mr Cook, ex-Postmaster-general, in a letter to the press, says that he is certain if the Cape cable be constructed on the*

conditions already suggested it will inevitably lead to the postponement of the Pacific project. He states that the Ministry are keeping the negotiations with the Eastern Extension Company very secret, but from what has come to light he gathers that the company want not only a guarantee of the traffic, but to completely safeguard it from the results of healthy competition, which it was the aim of the advocates of the Pacific scheme to encourage.

The Telegraph, replying to Mr Cook's charges, points out that the Eastern Extension Company, in their proposals, distinctly state that they will entirely waive a renewal of their present subsidy, and do not want any guarantee against competition.

Mr Cook says that if a guarantee be given to the Eastern Extension Company we can safely say good-bye for many years to the Pacific cable, which would then have to open under such conditions as would make it unpayable from the first.

The Telegraph points out that all the guarantee asked by the company is that they (the company) shall not be required to put into operation the fullest reduction of their tariff unless the business, done reaches a certain amount. It concludes its article by saying that the only obstacle which the company's proposal ' seems ' to offer to the Pacific scheme is that of a healthy and free competition.

Mr Seddon has cabled to the various Australian Governments protesting against the proposed Cape cable, on the ground thab it will prejudice the Pacific scheme. January 29.

The majority of the Premiers thought that no apprehension need be felt that there would be any unreasonable delay in the construction of a Pacific cable. Meanwhile the immediate advantage of the Cape route could not be over-estimated. It is probable that the Eastern Extension Company will accept the modification suggested by the conference in reference to their dealing direct with the piiblic. Another point which would be the subject of further negotiation is the request of the company that the colonies admit their material and supplies duty free. The Premiers had no objection to admit the material for the first construction of the lines free, 'but they are opposed to make any agreement beyond that.

WELLINGTON, January 29.

The Premier cabled last week to the Secretary for the Colonies inquiring if it were true, as reported, that he had recommended that the Cape-Australia cable route should be accepted by the colonial Governments. In reply Mr Seddon has received from Mr Chamberlain through the Governor the following : " I have not made the recommendation referred to, as I consider that the matter chiefly concerns the colonies interested in the Pacific cable, and I am now awaiting the decision of the Premiers on the subject." The