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nection with this cable. I need not elaborate any remarks I intend to make in moving the motion, as wo have already discussed it very fully in Committee. I recognise it to be a very important matter It is one which I think will have a considerable influence for good upon .both the national and commercial affairs of the whole of the countries concerned. It will be an important link between the colonies and Canada, and a most useful cable for the Pacific Islands at which it is proposed to touch. The way in which the resolution now stands renders it quite unnecessary for me now either to point out whether the proposed cable will pay or not, or the amounts that will be required to be contributed by the respective colonies by way of guarantee, for the reason that the motion now is that a rate of interest of 4 per cent, is to be guaranteed by the whole of the countries concerned upon a fixed capital of £1,800,000 the profit or loss will only affect any company which undertakes it. That will amount to a guarantee of £72,000 a year for a period not exceeding fourteen years by the whole of the colonies interested, and that amount, divided upon the basis of population between the various colonies, works out, I may say, to very moderate sums indeed. So far as the colonies are concerned, Canada and England will have to bear the greater proportion of the cost of the guarantee. It is important, however, for us to recognise that we are not going to do anything by way of fixed subsidy, that the system we adopt is a system of guaranteeing only I should also like to say it is not to be expected that either South Australia or Western Australia, from the position in which they are at present placed, and from the existing interests they are already concerned in, should come into this guarantee. It is recognised by the delegates who are here that neither of these colonies can be expected at present to do so. I have only to add that this cable, with the exception of Samoa and Honolulu, will pass entirely through British territory Samoa is in a neutral position, and in that- respect is to be distinguished from a colony, or place, which happens to be under the flag of a foreign nation. The routes indicated, it will be observed, render it possible for the Eastern Extension Cable Company (who are the proprietors of the existing cables) to tender, and to utilise existing cables between Australia and New Zealand. On the other hand, the proposal leaves it open to the world to compete for the laying of a cable between Australia and New Zealand, and from New Zealand onwards, as indicated. In moving the resolution I propose to ask the Conference to allow it to be printed and circulated, and to come up for final consideration to-morrow On motion of the Hon. Mr Kidd (New South Wales), Ordered, That this debate be now adjourned. Ordered that this debate be resumed to-morrow INTERCOLONIAL TARIFFS. On motion of the Hon. Mr Wabd (New Zealand) seconded by the Hon. Mr Wynne (Victoria) Besolved, That the delegates to this Conference, recognising the value of the decisions arrived at in reference to joint postal and telegraph services, by periodical meetings of representatives from the various colonies, would suggest to their respective Governments that similar advantages, in reference to trade relations between the respective colonies in the direction of reciprocity would ensue, if similar conferences could be arranged to deal with questions in connection with intercolonial tariffs. FEDERAL MAIL-SERVICE CONTRACT. The Hon. Mr Wynne (Victoria), seconded by the Hon. Dr Cockburn (South Australia), moved, and the question was proposed, That the conditions be settled at this Conference upon which fresh tenders for the Federal mail-service are to be called. In moving the above resolution, Hon. Mr Wynne (Victoria) said Mr President, I think this is a proper time for us now to consider the terms of the renewed mail-contract. It seems to me there are two ways of dealing with the mails, either to pay upon the weight or to subsidise the steamship companies for the quick carriage of our mails. A large part of the business now is done by telegraphic communication , but still I think it is advisable to continue the mail-service somewhat on the present lines and I would suggest that we recommend the Home Government that tenders be called for a term of, say five years, for a service between the Mother-country and the colonies , and that the tenders should state the time they will take in carrying the mails, what freezing-space they can supply to the colonies, and the rates to be charged for the carriage of our products or we could call for tenders in the alternative, simply for the carriage of the mails and for the carriage of frozen produce. Since my visit to New Zealand I am inclined to think that, as the Australian Colonies can produce the frozen meats and butter to be carried, steamers will be put on without any subsidy whatever to carry these goods to the Mother-country I notice that large steamers like the "Gothic" go from port to port and collect the frozen carcases, and take them to England without any subsidy whatever I think if tenders are called for, as I suggest, we will know exactly what is the price to be paid for carrying the mails, and whether the companies want an extra price for carrying the meat. If we consider their charge is too high, it may pay the colonies to subsidise a slow-going line of steamers, with a large carrying capacity which will carry the produce at lower rates. I think it was suggested at Brisbane that the tender forms should be submitted to the colonies before they are dealt with. I still think we should have a voice m settling the tender-forms, and that they should be submitted to us. There is a year and ten months to spare, and that would give ample time to consider the terms of the contract. Under the present contract the steamship companies contract to carry letters only I think our parcel-post should be included, and one of the conditions should be that they should undertake also the carriage of parcels on the subsidy rate, instead of paying, as we do now, an extra charge for the carriage of parcels in addition to the large subsidy given to these steamship companies. As the report of the permanent heads has not been completed, I will not discuss the details of the proposed contract any further, but simply suggest that tenders be called for a renewal of the service for a period of,