F.—B

18

Extension Telegraph Company without any qualification, as soon as they 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 the 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 the manner above suggested. 9. It has been suggested that the Commonwealth Government should reduce their terminal rate to the level of the rate for urgent internal messages. The majority of us are of opinion that the rate of sd. per word is excessive, and we trust that the Government will see their way to reduce it. 10. We note 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. 11. In conclusion, we desire to recommend, with a view not only to the prevention of any misunderstanding, but also to 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. 12. The Pacific cable being 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 farreaching political consequences attendant on the success or failure of the Pacific cable, we feel assured that the fullest possible effect will be given to the foregoing recommendations and suggestions which we respectfully submit for the consideration of His Majesty's Government and the Governments of Canada, Australia, and New Zealand. Alfred Lyttelton. Jersey. William Mulock. Sandford Fleming. George W. Johnson, Secretary. Colonial Office, 28th July, 1905. [P.O. Rates 05/98.]

Enclosure in No. 29. The Pacific Cable Board. —International Traffic between Australasia and the United Kingdom, Europe, and America, carried by the Eastern and Pacific Cable Routes for the Calendar Years 1903 and 1904.*

The Pacific Cable Board, E, H. Moore, Traffic Accountant. C. H. Eetnolds, General Manager,

1903. 1904. State of Origin or Destination. Eastern. Pacific. Total. Eastern. Pacific. Total. New South Wales and United Kingdom Victoria and United Kingdom Queensland and United Kingdom South Australia and United Kingdom West Australia and United Kingdom Tasmania and United Kingdom Words. 367,065 405,908 24,064 352,478 289,816 19,914 Words. 128,327 83,410 75,313 4,797 7,934 7,799 Words. 495,392 489,318 99,377 357,275 297,750 27,713 Words. 385,857 467,493 17,111 371,445 270,884 16,397 Words. 118,084 86,468 81,464 10,103 10,090 10,946 Words. 503,941 553,961 98,575 381,548 280,974 27,343 Total Australia and United Kingdom Total New Zealand and United Kingdom 1,459,245 102,994 307,580 234,924 1,766,825 337,918 1,529,187 79,213 317,155 285,744 1,846,342 364,957 Total Australasia and United Kingdomf Total Australia and Europe, America, &C.J .. Total New Zealand and Europe, America, &c. J Total Pacific Islands traffic 1,562,239 249,123 13.035 542,504 210,048 51,785 7,623 2,104,743 459,1711 64,820' 7,623 1,608,400 267,579 13,380 602,899 221,546 60,845 9,571 2,211,299 489,125 p- 74,225 9,571 *Grand totals 1,824,397 811,960 2,636,357 1,889,359, 894,861^ 2,784,220 (Ordinary Classification I Government (Press 1,537,734 24,856 261,807 716,624 78,835 16,501 2,254,358 103,691 278,308 1,628,448 23,622 237,289 773,664 83,635 37,562 2,402,112 107,257 274,851 Grand totals 1,824,397 811,960 2,636,357 1,889,359 894,861 2,784,220 * This statement does not include traffic between Australasia and China, India and the East, and the figures for traffic via Eastern aave been compiled from statistics supplied by the company. f Rates are similar by both routes. t Rates vary with route, America cheaper by Pacific ; and Continent of Europe generally cheaper by Eastern; with the result that, •oughly speaking, the Eastern obtains the whole of the continental traffic and the Pacific the whole of the American traffic.