51

F.—6

14. (iv.) New Places of Call. —Perhaps the most important matter arising under this heading is the respective merits of Marseilles, Naples, Reggio, Messina, and Brindisi as European ports of departure or arrival for the Eastern mails. It may be stated at once that Reggio and Messina are impracticable for the purpose. The harbour at Reggio is not considered quite safe, and is only suitable for very small vessels; and though Messina is a much better port, the mails would have to be carried in ferry steamers six miles across the straits, and serious delays would ensue. We have carefully examined the relative advantages of Marseilles, Naples, and Brindisi. Naples is a good enough harbour; but Sir Thomas Sutherland has made a calculation that there would only be a difference of about seven hours really in the transit of Eastern mails as between Naples and Marseilles, so that it is hardly worth while going to Naples for the sake of saving something like seven hours; and the difference between Brindisi and Naples is, approximately, fifteen hours in favour of Brindisi. This leaves the choice between Brindisi and Marseilles. There would, no doubt, be a larger annual economy in running the postal train to Marseilles instead of the longer distance to Brindisi, though Sir Thomas Sutherland did not think there would be any difference in sea-cost as between the two ports. He further estimated that the actual difference as between Marseilles and Brindisi would only be sixteen hours in favour of Brindisi; but on the outward journey, as large steamers cannot leave Marseilles except at daylight and the London mail has to be made up too late at night to reach Marseilles in time for the mail-steamer to leave by daylight the following day, there would in practice be a further loss of six or seven hours, making nearly twenty-four hours in all. In view of the general desire for acceleration we recommend that the Brindisi service be for the present continued. 15. Detailed information regarding the mail-service with Malta has been submitted to us, and some inquiry has been made whether the island could become a port of call for the eastern mail steamers; but we consider that the postal arrangements with Malta are satisfactory, and that any alteration, either by requiring the eastern mail-steamers to call there or by instituting a British contract line of steamers, would cause serious delay to the eastern mail service, or expense not warranted by the circumstances. 16. At the request of the Indian Government we recommend that tenders should be invited for a weekly service between Aden and Karachi in connection with the mail-service to and from Bombay, though the acceptance of any tender ought clearly to depend upon its reasonableness and moderation. 17. Several other places have been spoken of as possible places of call, either by direct mailsteamer or a branch steamer; but the evidence before us does not justify any important change in standing arrangements. To British New Guinea, for instance, the weekly correspondence from the United Kingdom amounts only to about seventy letters and one sack of printed matter, and in any case it is best served, as now, from Australia. To British North Borneo the average weekly mail made up in London contains about 200 letters and 360 newspapers or packets of printed matter, for the conveyance of which from Singapore to North Borneo the British Government pays about £20 a year. 18. (v.) Admiralty Requirements. —The Admiralty decided a few months ago only to subsidise for cruiser purposes merchant vessels which could run at a speed of 22 knots per hour. As the supply of such ships is so restricted the Post Office is compelled to be content with a lesser speedthere are, in fact, no 22-knot vessels at present trading in the eastern seas —and Admiralty and Post Office interests are to this extent now separate. At the same time we think that clause 22 of the existing Peninsular and Oriental contract, reserving to the Admiralty liberty to purchase or charter the mail-ships at any time during the continuance of the contract, may be usefully retained in the public interest with scarcely any modification in future mail contracts. This would provide for the possible requirements of the Admiralty. It is pertinent to observe that the decision of the Admiralty only to subsidise merchant vessels attaining a speed of 22 knots will set free a number of ships now carrying special Admiralty fixtures, and enable them to give more space for commercial purposes and mails. Other Admiralty requirements connected with mail contracts relate to special facilities for Government parcels and stores, as to which we have no change to suggest, and to the conveyance of Government passengers, which is more comprehensively dealt with in paragraph 20. 19. (vi.) Any Condition as to not giving undue Preference to Foreigners with regard to Freights.— -The question of some control over rates of freight, either absolutely or with a view of preventing undue preference to foreigners, was considered by the Select Committee on Steamship Subsidies in their report of 1902, which suggested that no subsidy should be granted without Government control over maximum rates of freight. A resolution was further passed at the Conference of Colonial Premiers in 1902, recommending that " in all new contracts provisions should be inserted to prevent excessive freight charges, or any preference in favour of foreigners." This principle was acted upon last year in a general clause in the agreement between His Majesty's Government and the Cunard Steamship Company; but we prefer a more specific clause if the provision as to undue preference is to be thoroughly effective. There are no doubt great practical difficulties; rare occurrences might even arise where it' might actually be desirable to give foreigners some preference so as to attract commerce from foreign channels; but we believe that there is a strong opinion among many business men in favour of such a clause, and we suggest the following for the consideration of His Majesty's Government: 'The company shall not in relation to the conveyance of persons or goods by vessels carrying mails give or agree for any undue preference to traders or other customers or persons outside the United Kingdom and the possessions and dependencies of the British Crown over traders, customers, and persons in the said United Kingdom, possessions, and dependencies. The President of the Board of Trade may receive and by himself or an arbitrator appointed by him determine, in accordance with the provisions of ' The Arbitration Act, 1889,' complaints of breach of the preceding condition, and give directions for compliance with the said condition."