The Hon. Dr. Cockburn : I think it is 4s. 9d. The Hon. Mr. Cook :Is it nothing to get through possibly for 3s. 2d. ? Tou are seeing no advantages at all. lam trying to show that a 3s. 2d. instead of a 4s. 9d. rate would be worth while. The Hon. Dr. Cockburn : Of course, our telegrams would still go the other way—it is shorter. The Hon. Mr. Cook : Would they? And you would pay 4s. 9d. in preference to 3s. 2d. ? The Hon. Mr. Duffy: What do you say, Mr. Eeeves, would your Government agree to come in on equal terms with the other three Colonies? The Hon. Mr. Eeeves : I scarcely feel warranted in speaking in their name on the question to-day, I thought it only right to explain my position. There is no desire on my part to hang back. I recognise that if this is to be gone into, it must be in a fairly broad spirit. Might I suggest that we meet to-morrow morning, and it be postponed till then. I could cable to Mr. Ward now. I understand that the proposal of the three contributing Colonies is that the four contracting Colonies come in on an equal footing, equal responsibility? The Hon. Mr. Duffy: There is another little subsidiary point as to the local land charges ; we must come to some equitable arrangement —it does not effect New Zealand, I suppose ? The Hon. Mr. Thynne proposed that there should be fixed the same charge to Brisbane as to Melbourne, say 2d. or 3d. a word; let all the Colonies pay alike, pool the amount, and. divide it, that is a fair way of doing it. The Hon. Mr. Cook : Yes, that is fair. The Hon. Dr. Cockburn: Of course, the position of South Australia is well known and recognised in this matter. At all former Conferences, South Australia has abstained from taking part in or voting on the question of the Pacific cable ; on the other hand she has no desire or intention of departing from the traditions that have always guided her, and she will continue to do her utmost iD the interests of international telegraphy, and she looks to the friendly feeling of the neighbouring Colonies that her services in the past will not be made the cause of her suffering unduly in the future. Of course, the facts of the construction of the transcontinental line are well known. It was constructed in 1872 by South Australia, at a time when there was no prospect whatever of the revenue meeting expenditure. I suppose but for that step on her part, for the enterprise she then showed, telegraphic communication would have been delayed many years. She constructed the line, worked it at great expense, and for many years at great loss, and she has reason, from the expressions of friendliness which have always been given by delegates at previous Conferences, to believe that she will not appeal in vain to the sense of justice and kindly feeling of her neighbours. Should this line be constructed, she expects that she will not be left with an unprofitable line on her hands. Of course she feels that to put her interests forward in any way to oppose or prevent the extension of telegraphic communication would be unworthy ; she has no intention of doing that; on the contrary, she would like to assist. Of course, whether she could do so or not would entirely depend on the attitude of her neighbours. She has been given reason to believe that other Colonies would favourably entertain a proposal,in the event of the Pacific cable being constructed, either to take over the existing transcontinental line as a federal undertaking, or to give her some guarantee that the revenue derived from her present line would not be unduly destroyed by the Pacific line. Either of these results would be satisfactory to South Australia. The question of South Australia contributing has not been discussed hitherto, and we have always been looked upon as exempt, but we would prefer—l believe my colleagues would —that we should take portion in this undertaking ; but this is a new phase of the question. The Hon. Mr. Thynne : The way in which we look at the question is this : Assuming that the Pacific cable is .actually accomplished (and will bo within the next three or four years), it will be to our interest in Queensland —and the same with New South Wales and Victoria, and, I hope, New Zealand—to have an alternative route by the eastern line available for us ; and for that reason I think that those Colonies, under the circumstances, would be doing right to make such provision as will keep the way open for connection with the eastern cables. What the extent or amount of the charge which the other Colonies would be expected to bear is a matter we are not able to discuss at present. I think that the interest we have is sufficient to justify us in coming to an equitable arrangement. Mr. Playford, at the Ottawa Conference, stated the position of South Australia practically in the same words as Dr. Cockburn has. We should like to see South Australia come in as a contributing Colony with New Zealand and ourselves, even though it may be on a lower basis of contribution than we should pay. Some fair allowance should be made for the advantages derived from the existence of the South Australian overland line. At our first meeting I proposed that the four contracting Colonies should settle all questions of local or conflicting interest between themselves, and then approach South Australia and say: " We have arranged for this cable, on what terms will you come in with us ? " as a preliminary. It may still be necessary that this be done before we can come to a definite arrangement. The Hon. Mr. Cook : The guarantee to South Australia is purely a contingent one. The Hon. Mr. Eeeves: I should be prepared, Sir, I think, to go this far: that, recognising the services of South Australia, and how desirable it is that they should come in, the South Australian Government be invited to make, as it were, an offer what they think they ought to get to come in. The Hon. Mr. Cook : I think that offer is now made in a formal way by Dr. Cockburn. The Hon. Mr. Peeves: He said it had not been properly considered by his Cabinet —it has not been discussed by our Cabinet either. The Hon. Mr. Cook : It has always been considered that Mr. Ward would be favourable to this view. The Hon. Dr. Cockburn: The altitude of South Australia was not only discussed at the New Zealand Conference, but it was distinctly understood in Committee, that in the event of the Pacific cable being constructed, one of two things should be done—either the line should be taken over, or a guarantee given to South Australia. The Hon. Mr. Tiiynne : Surely your Colony would not be prepared to hand over the line ? The Hon. Dr. Cockburn : No; we might be a federated Australia. The Hon. Mr. Eeeves : I think the guarantee would be the better form. Some conversation took place as to what had been said at the New Zealand Conference, the Hon. Dr. Cockburn having confidence that such an understanding had been expressed. The Hon. Mr. Cook :We might leave the matter where it is for the present. Dr. Cockburn could consult with his Premier. The

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